Secret power of the product ecosystem: A network perspective from the case of Apple

Abstract

From a network theory perspective, this study examines the Apple product ecosystem, conceptualized as a network of products connected through native applications. It investigates how this ecosystem influences users’ ecosystem loyalty intention and brand identification through customer value (functional, emotional, and social value) and switching costs (transition and sunk costs). Empirical results demonstrate that both the product tie degree and ecosystem density significantly affect customer value and switching costs. Furthermore, the study reveals that the product ecosystem indirectly impacts ecosystem loyalty intention and brand identification differently through these factors. Importantly, it confirms that switching costs exert a stronger influence than customer value within the ecosystem. These findings contribute to advancing research on product ecosystems and network theory and provide practical implications for marketers aiming to enhance customer retention and brand engagement through interconnected product strategies.