What is the price elasticity in the iPhone app store
iPhone users, what is your threshold for price on a paid app? At what point are you willing to say “screw it” I’ll give it a try. Is there a difference between 99 cents and 1.99. I’ve played around with pricing on the apps I have in the app store between 99 cents up to 4.99 and have found no difference in uptake. That surprised me as in my own purchasing up to 1.99 I will usually give it a shot, over that I usually think about it. I’ve bought a few more expensive apps but most are free, 99 or 1.99 on my iPhone. Where is your threshold and how much will you pay not to have ads on an app?
Here’s an interesting thought. I probably spend $10-$20 a month on iTunes. But if Apple offered me a $9.99 / month for all I could eat I don’t think I would do it even though I would likely save over time. I just don’t want the commitment. But I will easily plunk down a buck here a buck there without thinking about it. They are brilliant in the way they have made it so easy to spend a buck and those bucks add up.
Where is your line of what you pay for an app without much hesitation?
