Effects of app pricing structures on product evaluations
Article
The purpose of this paper is to contribute to the marketing literature and practice by examining the effect of product pricing on consumer behaviours with regard to the assertiveness and the sentiments expressed in their product reviews.
In addition, the paper uses new data collection and machine learning tools that can also be extended for other research of online consumer reviewing behaviours.
Design/methodology/approach
Using web crawling techniques, a large data set was extracted from the Google Play Store. Following this, the authors created machine learning algorithms to identify topics from product reviews and to quantify assertiveness and sentiments from the review texts.
Findings
The results indicate that product pricing models affect consumer review sentiment, assertiveness and topics. Removing upfront payment obligations positively impacts the overall and pricing specific consumer sentiment and reduces assertiveness.
Research limitations/implications
The results reveal new effects of pricing models on the nature of consumer reviews of products and form a basis for future research. The study was conducted in the gaming category of the Google Play Store and the generalisability of the findings for other app segments or marketplaces should be further tested.
Originality/value
The findings can help companies that create digital products in choosing a pricing strategy for their apps. The paper is the first to investigate how pricing modes affect the nature of online reviews written by consumers.