Personalization, value co-creation, and brand loyalty in branded apps: an application of TAM theory

Abstract

Many times, branded apps are rarely used after consumers initially download them, raising the question of how marketers can make these apps more useful to consumers.To that end, although the Technology Acceptance Model (TAM) has been well-documented in the information systems and marketing literatures, application of this theory in the branded app context is scarce. Building on the TAM and value co-creation literatures, this research explores how key functions of branded apps improve brand loyalty via personalization and value co-creation. Data were collected from young adults at two public universities using an online survey. The conceptual model was tested employing partial least squares structural equation modeling (PLS-SEM) with a sample of 372 branded app users. On the theoretical side, this study uniquely integrates TAM with value co-creation, while on the practical side, the findings confirm that branded apps provide an entertaining and personalized avenue to brand loyalty alongside more conventional mechanisms, such as customer relationship management and loyalty programs.

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