Yes, there is research that backs up "round" prices ($x.99): http://www.post-gazette.com/pg/06351/746545-28.stm
People can "know" that $0.99 is a dollar, but at the same time it presents a lower psychological barrier than $1.04. I can't find it right now, but I also saw some numbers coming out of PopCap that were interesting: They tried selling product at various price points, and found they sold almost as many units at $14.99 as $19.99. That first digit is what people see, apparently. They sold significantly more units at $9.99, but not more than twice as many as at $19.99, so they kept the higher price point. I'm leaning toward releasing the premium version of my game [1] at $1.99 or even $2.99 rather than the minimal $0.99 (at least in the US) given the above, combined with some other things that I've read that imply that making something non-free (even $0.99) creates a psychological barrier to action, and that raising the cost, even by 2x or 3x, doesn't change the barrier by much. Humans are fundamentally not rational animals, economists fantasies notwithstanding. That also gives me room to have sales without making it free. :) As an aside, a quick back-of-the-envelope puts the prices of a smartphone at between 5 days of eating out for a cheap phone to 15 days for an expensive one (not counting carrier discounts, since you can get smartphones for "free" with 2-year lock-in at this point). Maybe a bit more if you bought really cheap "food" (I don't consider Taco Bell to sell real food, for example), but certainly no more than a month, as you say. I think the higher relative cost of a smartphone in poorer countries is because that phone IS their primary Internet access and phone access, or at least their only personal access, in a lot of cases. So instead of having a land line, a DSL/cable modem connection, a personal computer, AND a smartphone, they only have the phone. And the smartphone plans cost a LOT less than wireless plans do here. So I still plan to charge less in those countries; how much less is TBD, but a billion customers who might consider paying me something at the right price are not to be ignored. ;) Tim [1] http://rechargegames.com/news/hamster-attack-video-previews On 4/17/2011 6:23 PM, Mark Carter wrote: > 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] > <mailto:[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. > > > -- > You received this message because you are subscribed to the Google > Groups "Android Discuss" group. > To post to this group, send email to > [email protected] > <mailto:[email protected]>. > To unsubscribe from this group, send email to > [email protected] > <mailto:android-discuss%[email protected]>. > For more options, visit this group at > http://groups.google.com/group/android-discuss?hl=en. > > > -- > You received this message because you are subscribed to the Google > Groups "Android Discuss" group. > To post to this group, send email to [email protected]. > To unsubscribe from this group, send email to > [email protected]. > For more options, visit this group at > http://groups.google.com/group/android-discuss?hl=en. -- You received this message because you are subscribed to the Google Groups "Android Discuss" group. To post to this group, send email to [email protected]. 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