If it ain't broke, should you still fix it? Effects of incorporating user feedback in product development on mobile application ratings

How can firms utilize collective user feedback in reviews to better tailor their products to improve customer satisfaction? Based on an automated text analysis of 1,075,704 reviews and a content analysis of 3255 mobile application updates, observed over 460 apps’ first year on the market, this paper investigates the role of collective user feedback on user ratings during the process of developing successive mobile app generations. The results reveal that the rewards associated with responding to user feedback and the penalties due to ignoring this feedback can be substantial. The impact of the match/mismatch between user feedback and product development decisions depends on the topic of the feedback and the timing of the update. The findings provide app developers with guidance on the challenge of prioritizing possible development paths: (1) improve ratings by promptly matching user feedback that require new content or smooth functioning of the app; (2) avoid rating penalties by continuously improving existing content or ensuring compatibility with most recent operating systems and devices. The implications shed light on the fundamental question of whether and when to pro-act on or re-act to the voice of the customer.