What drives users’ intentions to purchase a GPS Navigation app: The moderating role of perceived availability of free substitutes

Purpose: Grounded on the value-based adoption model and innovation diffusion theory, this study examined consumer purchase decisions of mobile Global Positioning System (GPS) navigation apps. In addition, this study also investigated the moderating role that perceived availability of free substitutes (PAFS) plays in the relationship between perceived value and purchase intention. The paper aims to discuss these issues. Design/methodology/approach: Data collected from 219 mobile users were analyzed against the research model using the partial least squares approach. Findings: The results showed that compatibility, relative advantage, perceived enjoyment, perceived cost (positively), and complexity (negatively) influenced these users’ value perceptions and purchase decisions. Furthermore, PAFS significantly weakened the positive relationship between perceived value and purchase intentions. Practical implications: Based on these findings, the authors provide practical suggestions for mobile app developers to increase mobile app sales. This study also helps advance knowledge of mobile internet marketing. Originality/value: This study is a pioneering effort in explaining consumer purchase intentions in the context of mobile GPS navigation app.