You're talking to someone who's lived in India for over a year and eaten
every meal in local restaurants (sorry, like most people there, I never went
to KFC ;) ). Oh, and I'm writing this from China, so I could bring some
relevance to this topic :)

If you spend a year eating three meals a day in local restaurants, that will
be about the same cost as a smartphone.  What's the length of time in the
US? 1 week, 1 month?

The point is, that if people compared prices to the cost of a local meal,
then there is no way smartphones would sell at all in poorer countries.
 Just look at how Starbucks is successful in poorer countries even though
its prices are usually almost as expensive as in the richer countries. In
asia, a cappuccino is often more than 3 times the price of a meal in a local
restaurant!

Personally, I think rounding makes a significant difference. There is a
difference between prices influencing decision to purchase, and what price
you tell your friends. A lot of it is subconscious. The fact that retailers
do it the world over, suggests they have the data to back it up.

On 18 April 2011 00:21, Brian Conrad <[email protected]> wrote:

> On 04/16/2011 06:26 PM, Mark Carter wrote:
>
>> I don't think it makes sense to set the local app price influenced by the
>> local price of a meal (especially a KFC meal ;) )!
>>
>
> Fast food was just an example.  You can use many things to compare.  I used
> KFC as it was the first American company franchise that popped up during the
> search and thus something that  most readers here could relate to.  I don't
> think they would be able to relate much to masala doshas, idilis, samosas or
> pakoras which are Indian fast foods nor know what you pay for those in the
> US.  You must not have traveled much. :-D
>
> Customers are squawking about apps that cost less than their morning latte
> (there's another example or their morning chai).  As for pricing I've been
> selling online for 13 years and nobody seemed to care about "rounded"
> prices.  Do you tell your friends you spent $495 for your TV or $500?
>  Probably the latter.  Most people know the .95 or .99 is a sales trick.
>
>
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