CCHE Seminar Series: Does Premium Version Adoption in mHealth Improve User Engagement and Health-Related Outcomes?

Does Premium Version Adoption in mHealth Improve User Engagement and Health-Related Outcomes?

Nathan Yang
Cornell

Friday April 14th, 2023, 10am-12pm, *Zoom Only* (Note: No In-Person Presentation)

Abstract: We study the impact of premium adoption on mHealth user engagement dynamics with data from a popular mobile food and exercise tracking app. To estimate the causal effect of premium adoption we use a propensity score matching method. The analysis reveals that premium adoption is linked to elevated engagement levels for food and exercise calorie tracking, daily goal achievement, exercise calories, as well as weight loss. Moreover, these effects on engagement levels from premium adoption dampen quickly over time. We later confirm using a calibrated theoretical model that the observed usage dynamics are likely explained by mental accounting of sunk costs. A consequence of sunk costs, as we demonstrate, is that user engagement as well as their incentives to adopt the premium version, could increase if fees are raised.

Nathan Yang is an Assistant Professor in Marketing at the Cornell Dyson School of Applied Economics and Management. Previously, he was an Assistant Professor in Marketing at McGill Desautels Faculty of Management and Affiliate Professor at McGill Bensadoun School of Retail Management. His main research interests are in behavioral analytics, empirical industrial organization, (mobile) health and wellness, and retail strategy. He completed his PhD in Economics at the University of Toronto.

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