Abstract:
Marketers are increasingly adopting branded app because of their ability to deliver a distinct and gratifying consumer experience. While the user acquisition and adoption of the branded app is growing exponentially, the rate of app abandonment remains an area of concern. As many as 71 % of users remain inactive within a rolling period of three months; however, limited scholarly research has occurred to understand the causal explanation of this phenomenon. This study attempts to shed light on the reasons for such a high abandonment rate, the factors triggering such behaviors, and their causal relationship through the interpretive structural modelling (ISM) approach. An extensive literature review on the branded app, studies on consumer retention, and responses from 31 domain experts led to the identification of 19 factors and the presentation of a seven-layered interpretive structure to define the underlying causal relationship between these factors. The academic contribution of this paper lies, first, in identifying four new factors (onboarding experience, acquisition offer, value for time, and gestation period) and assimilating them into the extant consumer retention research. Second, this study conceptualizes a new model by integrating two existing theories of the Investment and Relationship Stability Model and the Commitment–Trust Theory. It also aspires to improve understanding of the branded app abandonment among practitioners and accordingly helps in prioritizing their marketing interventions.