Why We Agonize Over Buying $1 Apps 523
theodp writes "When it comes to explaining decision making and behavioral economics, Dan Ariely is the man. In his latest blog post, Ariely tackles the irrationality of app buying, explaining why the thought of paying even $1 for an app turns into an agonizing decision for those perfectly willing to spend $4 on coffee, or $500 on devices that they arguably don't really need. Had Apple created a really low minimum price for apps — say $0.15 — instead of offering free apps on day one, Ariely suggests, we would be anchored to the idea that apps should cost something. 'Then paying more (maybe even $2) for an app would be a simpler step,' he concludes, 'maybe one that we could take as easily as paying $4 for a latte.'"
Re:No recourse for bad apps (Score:5, Informative)
Perhaps it's because there is no recourse for me as a consumer if the app just doesn't work. At least with that $4 coffee I can send it back if it's bad, can't do that with an app.
On an iphone. In the android market you simply request a refund. Never had to try it, but supposedly it is possible.
Re:SHOULD "Apps" Cost Something? (Score:5, Informative)
As a long-time Linux user, one of the best points is that everything comes without strings attached. I would say "the idea that apps should cost something" is questionable at best, but leave it to Apple and their users to advocate it.
Not to rain on your troll, but I think the whole point of the article is that Apple and their users AREN'T advocating it.
Re:No recourse for bad apps (Score:5, Informative)
In the Android Market you get 15 minutes to requst a refund.
In the iOS App Store, you can request a refund by reporting a problem, and writtng to Apple that you want a refund and the reasons for the refund. It's not as quick and automated, nor obvious, as the Android Market, but they give you up to 90 days to do this (or maybe 30 days... not 100% sure now.).
Re:No recourse for bad apps (Score:3, Informative)
The refund official Android market does include a refund, but you only have a 15 minute window in which to request the refund. I've used it and it works.
For simple programs and games, that's enough to determine whether you want to keep it or not. For more complex programs, it can be a bit of a race trying to figure out whether the program suits your purposes or not.
Re:SHOULD "Apps" Cost Something? (Score:4, Informative)
Also, don't forget that credit card processing fees can be high, especially for a small vendor. Selling apps on your own would probably be very costly. Apple can negotiate a significantly lower rate and could share some of that savings with the app author.
For example, a common transaction fee is $0.30. That means that you pay $0.30 plus some percentage to your payment processor. For cheap apps, that's coming close to Apple's percentage, plus you have to deal with what is almost certainly a more convoluted process for payments and distribution.
It's honestly not surprising at all (to me) that developers approve of this model.
Re:SHOULD "Apps" Cost Something? (Score:5, Informative)
The money breakdown on a hypothetical $1 app purchase is:
Developer: 70c
Credit-card company: 16c
Apple: 13c
Storage/network costs: 1c
http://www.businessinsider.com/chart-of-the-day-cost-of-an-app-2011-7 [businessinsider.com]
Re:SHOULD "Apps" Cost Something? (Score:4, Informative)
Actually, I do work for free, I volunteer hundreds to thousands of hours a year to various causes and am quite happy to do so.
There are something less than 250 working days per year. Thousands of hours is minimum 2000. So you do 8 hours a day volunteering? Well, good for you if you do. I hope its a worthwhile cause.
Why should software developers never do the same?
I'm sure most software developers would be prepared to do some work on an enjoyable project for a charity. But "people who want software for nothing" aren't in general a worthy cause.