Which factors affect the price of a smartphone app? Select all that apply.
A. price of similar apps
B. price of compatible phones
C. price of offline activities
D. time scarcity among consumers
E. opportunity costs of consumers
To determine which factors affect the price of a smartphone app, you can analyze the following options:
A. Price of similar apps: This factor is significant because app developers usually consider the prices of similar apps in the market to determine a competitive price point for their own app. It helps to understand the pricing trends and expectations of consumers.
B. Price of compatible phones: The price of smartphones can affect the pricing strategies of app developers. If the targeted audience predominantly uses high-end, expensive smartphones, developers might set a higher price. On the other hand, if the target audience consists of budget-conscious users, developers may lower the price to attract more customers.
C. Price of offline activities: Generally, the price of offline activities does not directly influence the price of a smartphone app. However, if an app offers similar features or an alternative to certain offline activities, the price of those activities might indirectly influence the app's pricing strategy.
D. Time scarcity among consumers: Time scarcity refers to the limited time available to consumers to engage with various activities, including using smartphone apps. While it may influence consumer behavior and app usage patterns, it does not directly affect the price of a specific app.
E. Opportunity costs of consumers: Opportunity cost is the value of the next best alternative that a consumer foregoes when making a choice. Although it can influence consumer willingness to pay for an app, it is not a direct factor affecting the app's price.
Therefore, the factors that directly affect the price of a smartphone app are A. price of similar apps and B. price of compatible phones.
The factors that affect the price of a smartphone app are:
A. Price of similar apps: The price of similar apps in the market can influence the pricing of a smartphone app. App developers often take into account the pricing of similar apps to ensure their app remains competitive.
B. Price of compatible phones: The price of the smartphone on which the app is intended to be used can impact its pricing. Apps designed for high-end devices may be priced higher compared to those designed for budget devices.
D. Time scarcity among consumers: The scarcity of time among consumers can affect app pricing. If an app provides time-saving or convenience-enhancing features, it may be priced higher to reflect its value proposition.
E. Opportunity costs of consumers: The opportunity cost of using or purchasing an app can impact its pricing. If consumers have alternative uses for their time or money, the app may need to be priced competitively relative to those alternatives to attract users.
C. Price of offline activities: The price of offline activities typically does not directly affect the pricing of a smartphone app. App pricing is more influenced by factors specific to the digital app market rather than the pricing of offline activities.
CORRECT ANSWERS ARE:
A. Price of similar apps
B. Price of compatible phone
F. development costs of the app
G. marketing costs of the app
Answer: A, F, G