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dc.contributor.authorvan Angeren, Joey
dc.contributor.authorVroom, Govert
dc.contributor.authorMcCann, Brian T.
dc.contributor.authorPodoynitsyna, Ksenia
dc.contributor.authorLangerak, Fred
dc.date.accessioned2024-03-01T13:26:19Z
dc.date.available2024-03-01T13:26:19Z
dc.date.issued2022en_US
dc.identifier.issn0143-2095
dc.identifier.doi10.1002/smj.3394
dc.identifier.urihttp://hdl.handle.net/20.500.12127/7400
dc.description.abstractResearch Summary The optimal distinctiveness literature highlights a fundamental trade-off in product positioning within market categories: Products should be distinct to minimize competition, but similar to build legitimacy. Most recently, this research has focused on understanding sources of variance in the distinctiveness–performance relationship. We extend this literature with an examination of digital products and argue that the relationship depends on products' revenue models: We theorize the relationship is inverted U-shaped for paid products but U-shaped for free products, owing to heightened privacy concerns of free product customers. We further argue that this latter relationship becomes flatter for free products that provide greater monetization transparency by publishing a privacy statement or adopting a freemium revenue approach. Hypotheses are tested using a sample of 250,000-plus Apple App Store apps. Managerial Summary How should firms in the digital space position their products for optimal performance? We study this question in the Apple App Store, and suggest that the optimal positioning of digital products depends on their revenue model. Paid products should be moderately differentiated from competing products. By contrast, free products benefit most from very low or very high levels of differentiation. We attribute the different performance effects of differentiation to customers' privacy concerns over free products. Firms can partially ameliorate those privacy concerns by providing greater monetization transparency by publishing a privacy statement or by adopting a freemium revenue approach, making moderate levels of differentiation more viable. Our findings help managers align choices of positioning and revenue model, two critical aspects of the firm's business model.en_US
dc.language.isoenen_US
dc.publisherWileyen_US
dc.subjectDifferentiationen_US
dc.subjectLegitimacyen_US
dc.subjectMachine Learningen_US
dc.subjectOptimal Distinctivenessen_US
dc.subjectRevenue Modelsen_US
dc.titleOptimal distinctiveness across revenue models: Performance effects of differentiation of paid and free products in a mobile app marketen_US
dc.identifier.journalStrategic Management Journalen_US
dc.source.volume43en_US
dc.source.issue10en_US
dc.source.beginpage2066en_US
dc.source.endpage2100en_US
dc.contributor.departmentSchool of Business and Economics, Vrije Universiteit Amsterdam, Amsterdam, The Netherlandsen_US
dc.contributor.departmentIESE Business School, University of Navarra, Barcelona, Spainen_US
dc.contributor.departmentOwen Graduate School of Management, Vanderbilt University, Nashville, Tennessee, USAen_US
dc.contributor.departmentJheronimus Academy of Data Science, Joint Institute of Tilburg University and Eindhoven University of Technology, 's-Hertogenbosch, The Netherlandsen_US
dc.contributor.departmentDepartment of Industrial Engineering and Innovation Sciences, Eindhoven University of Technology, Eindhoven, The Netherlandsen_US
dc.identifier.eissn1097-0266
vlerick.knowledgedomainDigital Transformationen_US
vlerick.knowledgedomainOperations & Supply Chain Managementen_US
vlerick.typearticleFT ranked journal article  en_US
vlerick.vlerickdepartmentTOMen_US
dc.identifier.vperid313686en_US


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