The importance of mobile applications in a technology driven world (Blog 2)

Posted on by Aamina Minty

The importance of mobile applications in 2019

Mobile application (also known as apps) have seen an incredible growth rate since their introduction in 2008 (Strain, 2015). With over 95% of adults using mobile phones on a daily basis (Henshaw, 2018), it is understandable that different software developers (iOS, Microsoft, Android, etc…) have created more than 4 million apps worldwide (Stocchi et al, 2018).

Figure 1: Over a million apps are available to download from the available softwares

Ease of creating a mobile app

With so many technological advancements, creating an app has become a simple activity that can be achieved by watching a YouTube video. This is an ideal solution for the smaller industries or firms that have a lower budget but want to grow as a business.

Expanding demographics                                                

By using an app as a marketing and direct selling tool many brands/companies have been able to expand their normal demographics. With so many generations using mobiles on a daily basis, products are now being seen and used by multiple generations. For example: Instagram is considered to be one of the  more popular apps amongst teens and adults however, it has also allowed for the older and younger generations to take part in certain trends (Make-up).

Figure 2: An example of how mobile apps have no age limit (Instagram, 2019

Figure 3: A young make-up influencer displaying his make-up talents on Instagram (Instagram, 2019)

 

 

 

 

 

 

 

Using an app also encourages online influencers as it allows for them to create dedicated videos (i.e. Tutorials) which would only be released on the app, thus creating a community within the app. For example: The Patreon app which now allows influencers to gain an income by simply posting exclusive videos within the app for subscribers.

A business advantage

As Boyd et al (2019) analyse, mobile apps have now become the new touch-points in a customers journey and are essential as companies with a fully functioning app are perceived to have more value than those do not. This is due to the potential engagement that companies are likely to receive from new and existing consumers. For example: Locating the nearest store via the app or buying a product and completing the whole customer journey via the app.

Many organisations feel as though using an app is an advantageous approach to selling as it allows business’ to reach new heights due to a number of factors:

1. Reinforcement of the brand

Having the ability to be present to a consumer during their thinking process and knowing that they are able to access a full list of products immediately and on-the-go fortifies the strength of the company in a consumer’s mind.

2.Building loyalty

As mentioned, it creates an instant connection between the consumer and the brand. This bond will hopefully encourage loyalty amongst consumers as the firm is ensuring constant quality anytime of the day.

3.Increase accessibility and visibility

Using an app allows constant communication between a brand and consumers. Promotions and discounts are a great example of what brands can offer when using the app and encouraging consumer engagement. This can be done through a weekly notification directly from the app which entails all the specials and deals that a firm may have and how easy it is for a consumer to access it via their mobiles.

Figure 4: A display of how consumers use their different apps in their daily lives

Further research suggests that a company that has a user friendly app may increase the frequency in which consumers were to use it-in most cases leading to a potential purchase directly on the app (Newman et al, 2018) (Figure 5). This model would be ideal for the younger and newer firms trying to create market share. If the interface of the app is user-friendly, consumers will be more willing to frequently use it and may even recommend it to friends.

Figure 5: A conceptual model of how the ease of use of the the app might affect the frequency in which the app is used (Newman et el, 2018)

However, Peng et al (2014), created an alternate model in which they believe that consumers need to have a brand relationship with the company before they are fully able to engage with the app (Figure 6). This model is more relatable to the stronger and more well established brands as brand power and value are major factors that are examined.

Figure 6: A model which emphasises the need for consumers to have a brand attachment and/or identification before using the app (Peng et el, 2014)

Potential Risks of Mobile Apps

On the other hand, using a mobile app can be extremely challenging for some firms as data privacy and storage has been an issue in recent times. Hacking is a potential threat that many consumers face on a daily basis as sensitive information such as addresses and credit cards are being stolen and used. Although companies try to prevent hacks through the use of powerful firewalls and malware, there is never a 100% guarantee that a consumers information is safe online (Renard, 2012).

References:

  • Boyd, D.E., Kannan, P.K. and Slotegraaf, R.J. (2019). Branded Apps and Their Impact on Firm Value: A Design Perspective. Journal of Marketing Research, p.0022243718820588.
  • CBC News (2017) ‘Privacy and smartphone apps: What data your phone may be giving away (CBC Marketplace)’. Available at: https://www.youtube.com/watch?v=xx1AUupLn2w(Accessed: 28thFebruary 2019)
  • Chen, H.J. (2018) What drives consumers’ mobile shopping? 4P’s or shopping preferences? Asia Pacific Journal of Marketing and Logistics, 30 (4), pp. 797-815.
  • Henshaw, S. (2018). Mobile Phone Usage Statistics in the UK: How Many Smartphone Users Are There – TigerMobiles.com. [online] TigerMobiles.com. Available at: https://www.tigermobiles.com/blog/mobile-phone-usage-statistics/ [Accessed 15 Jan. 2019].
  • Newman, C.L., Wachter, K. and White, A. (2018) ‘Bricks or clicks? Understanding consumer usage of retail mobile apps. Journal of services marketing. 32(2), pp. 211-222.
  • Peng, K.F., Chen, Y. and Wen, K.W. (2014) ‘Brand relationship, consumption values and branded app adoption’. Industrial Management & Data Systems, 114(8), pp.1131-1143.
  • Renard, M. (2012) ‘Can we trust vendors to secure our data?’, Practical iOS Apps hacking, pp. 15-25. Available at: https://papers.put.as/papers/ios/2012/GreHack-2012-paper-Mathieu_Renard_-_Practical_iOS_Apps_hacking.pdf(Accessed: 20thFebruary 2019)
  • Stocchi, L., Michaelidou, N., Pourazad, N., and Micevski, M. (2018) ‘The rules of engagement: how to motivate consumers to engage with branded mobile apps’, Journal of Marketing Management, Vol 34 (13-14) pp. 1196- 1126. Doi: 1080/0267257X.2018.1544167
  • Strain, M. (2015) ‘1983 to today: a history of mobile apps’, The Guardian. Available at: https://www.theguardian.com/media-network/2015/feb/13/history-mobile-apps-future-interactive-timeline(Accessed: 25th February 2019)
The author is a University of Brighton student and any copyright was unintentional. All the information was sourced from a variety of websites. Please contact the author to find out more.
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