4 ms·
The reason why companies use points instead of $ is: 1) Easy to keep the price consistent world wide 2) There is a casino chip theory that you spend more money
by georgeecollins 14y ago
The reason why companies use points instead of $ is:
1) Easy to keep the price consistent world wide
2) There is a casino chip theory that you spend more money when it is abstracted. People spend more when they use their credit cards as opposed to cash, etc.
3) You can sell point cards at retailers to the unbanked. In the Xbox case this is important because a lot of your audience is kids.
- bobsoap 14y ago2) is on the spot. As soon as you introduce an abstract that is one step removed from money, people are more willing to gamble with that abstract. This is true for everything from credits to casino chips and from stock/shares to options and derivatives. Also, the word "willing", in this context, is actually an intended pun, since this happens on a subconscious level. There is a lot of literature on the topic; some pieces even establish a tie between that notion and the most recent banking crises and scandals. For example, stock options are not just one step removed from currency, but at least two or more. Interesting stuff indeed.
- caf 14y agoI suspect that even applies to foreign hard currency that you're not familiar with.
- kalleboo 14y agoAs for 3, Apple sell currency-denominated cards for the iTunes store without any problems.