Why We Refuse to Spend Much Money on Apps

▤ Summary

If offered two versions of a new product—one priced at $45 and the other at $7—most rational shoppers would choose the cheaper one, as long as both items were legitimate and more or less the same. But when consumers have the choice between a product in its traditional or tangible form vs. the same product in app form, the math becomes very different. Most people won’t spend nearly as much money for an app as they will for, say, a board-game or computer software, even if the app essentially offers the same experience at a much...

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