Which factors affect the price of a smartphone app? two
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
A The price of similar apps: If there are already similar apps available in the market at a certain price point, it can influence the price of a new app. A developer might choose to price their app competitively in order to attract customers or differentiate their app by offering more features and pricing it higher.
B The price of compatible phones: The price of smartphones can affect the price of apps. If the majority of the target market uses high-end, expensive phones, app developers might price their app higher to match the perceived value and purchasing power of their audience. On the other hand, if the target market consists of budget smartphone users, the app price might be adjusted accordingly.
C The price of offline activities: While the price of offline activities may not directly influence the price of a smartphone app, it can indirectly impact it. If the app offers similar functionalities or experiences to offline activities, the developer might price the app competitively or lower to attract customers and convince them of the app's value compared to the cost of offline activities.
D Time scarcity among consumers: If consumers perceive that using the app saves them time or helps them accomplish tasks more efficiently, app developers might price their app higher to capture the perceived value of time saved. Conversely, if the app is seen as a time-consuming or leisure-based activity, it might be priced lower to appeal to a wider audience.
E Opportunity costs of consumers: The opportunity cost refers to the value of the next best alternative foregone when making a decision. When considering purchasing an app, consumers might weigh the value they would obtain from the app against the value they would get from spending that money on something else. App developers must consider the opportunity cost of the consumers and set a price that reflects the perceived value of the app compared to other potential uses of the same money.