Which factors affect the price of a smartphone app? Select all that apply.
A. Price of similar apps
B. Price of compatible phone
C. Price of offline activities
D. Time scarcity among consumers
E. Opportunity costs of consumers
A. Price of similar apps
B. Price of compatible phone
D. Time scarcity among consumers
E. Opportunity costs of consumers
The factors that affect the price of a smartphone app are:
A. Price of similar apps - The price of similar apps available in the market can have an impact on the pricing strategy of a smartphone app.
B. Price of compatible phone - The price of the compatible phone can indirectly affect the perceived value and pricing of a smartphone app.
D. Time scarcity among consumers - If there is high demand and limited availability of the app, it can potentially affect its price.
E. Opportunity costs of consumers - The opportunity cost refers to the value of the next best alternative that a consumer foregoes when choosing to purchase a particular app. These opportunity costs may influence the pricing decisions.
Therefore, the correct options are A, B, D, and E.
To determine the factors that affect the price of a smartphone app, we can analyze each option and see which ones apply.
A. Price of similar apps: This factor is relevant because the price of similar apps in the market can influence the perceived value and competitiveness of a particular app. If similar apps are priced higher or lower, it may affect the price the developer chooses for their app.
B. Price of compatible phone: The price of a compatible phone could indirectly affect the demand for a smartphone app. If the app requires a high-priced phone, it may limit the potential market and impact pricing decisions.
C. Price of offline activities: This factor is not directly related to a smartphone app's price. The price of offline activities would not typically influence the price of an app, unless there is a specific connection between the app and the offline activity.
D. Time scarcity among consumers: This factor could influence the demand for a smartphone app, but it doesn't necessarily impact the price. Time scarcity may create a higher demand for apps, but the price itself would be determined by other factors.
E. Opportunity costs of consumers: Opportunity costs refer to the value of the best alternative forgone when making a choice. While this factor can influence the demand for an app, it doesn't directly affect its price.
Therefore, the factors that affect the price of a smartphone app from the given options are A (Price of similar apps) and B (Price of compatible phone).