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> I tried this as an experiment to see if I wanted to order more music this way, but it only downloaded half the songs. Still a deal at 99cents, but not an expe
by 6ren 15y ago
> I tried this as an experiment to see if I wanted to order more music this way, but it only downloaded half the songs. Still a deal at 99cents, but not an experiment I’ll want to repeat with a full-price album.
This is "expanding the userbase", and seems overwhelmingly successful.
I've been thinking recently that "sales" (as in specials, temporary price reductions) are a socially acceptable way to do discriminatory pricing (different prices for different people).
You want to do this because some people are happy to pay more (so you want to charge the higher price), and some people will only buy at a lower price. If you price it high, you lose the low people; if you price it low, you can't charge the high people a high price. It makes sense to therefore have offer high prices to high people, and low prices to low people. But people hate this! Amazon actually tried it for a while, until it was noticed (maybe they still do, but in a less discernible way?)
A sale is a way to capture those low people, and only losing some high people. This is apart from getting them to be regular users.
- jackowayed 15y agoI agree with your analysis that sale = acceptable price discrimination, but I think there's more to it when they do a sale on release day. That's when most of the people willing to pay full price buy it! I think it's largely to get people to buy from them instead of iTunes and thus to try CloudDrive and their mp3 service. And also to price discriminate and get people who would have otherwise not bought to buy from them and try CloudDrive and their mp3 service.
- busted 15y agoThe model of having regular sales to capture people who wouldn't otherwise buy, on a product that is digital so costs nothing to create (ie all costs are already sunk), is done really successfully with video games by Steam. People actually complain when there's a good Steam sale because they end up spending so much money, $5 or $10 at a time.