Author: BWild

Economics of mobile applications evolving

| March 5, 2013

Mobile Application EvolovingPricing disparity in mobile applications is gaining notice

The world of mobile applications is evolving. App developers are beginning to push the boundaries as new, more advanced mobile devices are introduced to the global market. These devices are governed by their operating systems, of which the most prolific are the iOS and Android platforms. Each operating system boasts of a devoted consumer base, which often clash against one another as the two flaunt the performance and capabilities of their favored platform. The disparity between the two platforms is becoming more apparent in the arena of mobile applications, however, and the divide separating the operating systems is quickly becoming one of cost.

SoundHound shedding light on pricing disparity

SoundHound is a simple instant music search and discovery application. It is not the first of its kind, but has become very popular with mobile consumers around the world. The application is available to both the Android and iOS operating systems  and is used quite regularly by consumers in both camps. Mobile applications are typically cross-platform, but their universal nature is punctuated by the fact that they do not cost the same on every platform. This issue is becoming highlighted by the SoundHound platform, as well as many others that are available to consumers.

Differing costs resulting from business model experimentation

SoundHound is available on the Android for $6.99 through Google Play. On Apple’s App Store, however, it is available for $5.99. The price disparity is not gargantuan, but SoundHound is one among many mobile applications that do not have singular pricing across all mobile platforms. This is because developers are beginning to test various business models and pricing points in several markets. Notably, the SoundHound application is available for the Windows Phone operating system for free.

Experimentation may be a risky venture in the mobile applications business

Testing new business models and pricing points can be very risky when it comes to mobile applications. Pricing disparity can often confuse or enrage consumers, leading to heavy criticism and causing applications to fail in the market. SoundHound has not been free of this criticism, but has managed to avoid the prospect of failure. The app has also begun to highlight the fact that the economics of mobile applications continue to evolve and that no concrete business plan has yet emerged to create a standard in the mobile space.

Customer satisfaction in mobile commerce on the rise

| March 3, 2013

Mobile Commerce Customer SatisfactionStudy shows consumers are more satisfied with their mobile commerce experiences

Customer satisfaction with mobile commerce seems to be steadily improving as mobile commerce services become easier to use and address many of the security concerns that consumers have. A new study from Foresee highlights this satisfaction among consumers in the United Kingdom. UK consumers have been showing strong interest in mobile commerce over the past two years. Many of these consumers have been using their mobile devices to shop online at the various retailers in the UK that have come to embrace mobile commerce.

Study highlights UK e-commerce sites

The study from Foresee examines the 40 largest retailers in the UK that have e-commerce websites. Each retail site was rated on a 100-point scale. The study found that consumer satisfaction with traditional websites held steady at 74 since 2010. It also found that satisfaction for mobile websites came in at 72 among consumers. Foresee notes that the disparity between these two channels has been slowly decreasing and the firm suggests that satisfaction in mobile commerce may soon overcome that seen in traditional channels.

Consumers becoming more comfortable with making mobile payments

The study suggests that consumers are becoming more comfortable with mobile commerce. Over the past two years, more mobile commerce services have become available, either in the form of mobile applications or through the use of NFC technology. Security concerns have also been addressed in order to create more peace of mind among consumers that wish to participate in mobile commerce. Adoption of mobile commerce is highest among retailers as they consider this form of commerce a very attractive concept to modern, tech-savvy consumers.

Better services encourage participation from consumers

The study shows that more people are using their mobile devices to shop for and purchase products. This trend is not likely to change in the foreseeable future, according to Foresee. Consumers are likely to continue showing support for mobile commerce, especially as new services become available to them that make shopping from their mobile device more convenient.