The role of transactionality of mobile branded apps in brand experience and its impact on loyalty

Branded apps are gaining momentum in branding strategies, as they allow proximity to the customers and a great opportunity to engage and retain them. This paper aims to fill in the existing literature gap and investigate the role of transactionality in the effect of branded app experience on brand loyalty. A lab experiment compares fully transactional (i.e., commercial), semi-transactional (i.e., freemium), and non-transactional (free service-oriented) branded apps, while a field study focuses on the impact of a non-transactional branded app. The effect of branded app experience is explained via identification with the brand, satisfaction with the brand, and perceived brand personality. Results show that perceived and actual physical brand experience both improve brand satisfaction, perceived personality, and identification with the brand. Furthermore, the research highlights the importance of identification with the brand to explain the effects of brand experience on brand loyalty. The findings suggest that brand managers should seriously consider creating non-transactional (i.e., non-commercial) branded apps, because they encourage the creation of a stronger identification with the brand, satisfy customers, and increase customer loyalty toward the brand.