App-pricing experiments can turn off consumers, analysts warn

03/3/2013 | Wall Street Journal, The

The business of how applications are monetized is still unsettled and shifting, with apps selling for different prices at various app outlets, but "free remains king," writes Greg Bensinger. Some publishers are testing variable pricing for in-app purchasing and experimenting with price-sensitivity thresholds. But Forrester Research analyst Sarah Rotman says that variable pricing can upset or confuse customers. "The pay[ing] user is more valuable, but that turns off advertising forever," says Game Hive's Mark Wang.

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