A Modest Proposal

592 Words2 Pages

Our main pricing objectives will initially be to focus on unit volume downloads and gaining market share. The first step in determining our app’s price consists in doing a competitive analysis in our product category: the social networking (crowdsourcing) category and the food & dining (dining out) category. Most importantly, our main competitors Trip Advisor, Urbanspoon and Facebook all provide users with free applications. A study, “ConsumerScape 360: Consumer Market Segments and the Global Mobile App Market,” shows that free apps comprise 90% of the total app market (Exhibit 8). Futhermore, the most popular free apps are gaming, music, social networking, weather, news, entertainment and navigation.
In addition, for paid applications, the …show more content…

This assures fair pricing for the mobile app and will enable our customers to have the impression that we are at par with the competition.
We believe that releasing ExploreMTL for free will be beneficial and is in line with our goal of gaining market share. Indeed, many surveys show that when faced with the choice between free apps with ads, or paying even $.99 for apps without ads, consumers overwhelmingly choose the free apps and tolerate the advertisements. “Free is magic,” says Barry Schwartz, professor of psychology at Swarthmore College. “If you offer something for free, people will gladly spend money to get it.”
According to Cialdini’s Fairness Norm (“if I do something for you, you should do something for me”), providing customers with a free download of our application will enable consumers to overlook certain glitches in our prototype. Indeed, we believe that we must maintain a great app store listing. Since app reviews are a very large part of app store listing, it is absolutely imperative that our reviews are as great as possible. We hope that these reviews will foster a good first impression: as seen in the Confirmation Bias, which occurs when people have strongly held options. The Confirmation bias states that there is a natural tendency to selectively filter new information, facts, and experiences based upon whether it confirms our opinion. Consumers that read reviews will hang on to anything that supports their point of view while ignoring or dismissing any evidence to the

More about A Modest Proposal

Open Document