Optimal pricing of Iphone apps under uncertainty

In recent years, the download of mobile applications has increase tremendously. This project targets on iPhone, one of the smartphones highly sought after in the market right now. An iPhone comes pre-installed with an application, “app store”, which is developed by Apple for users to download other...

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Main Author: Low, Hui Ying.
Other Authors: School of Mechanical and Aerospace Engineering
Format: Final Year Project
Language:English
Published: 2011
Subjects:
Online Access:http://hdl.handle.net/10356/45931
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-459312023-03-04T18:42:49Z Optimal pricing of Iphone apps under uncertainty Low, Hui Ying. School of Mechanical and Aerospace Engineering Chen Songlin DRNTU::Engineering::Systems engineering In recent years, the download of mobile applications has increase tremendously. This project targets on iPhone, one of the smartphones highly sought after in the market right now. An iPhone comes pre-installed with an application, “app store”, which is developed by Apple for users to download other apps, be it game, social networking etc. Apps in the store can either be downloaded for free or at a price. The app may sometimes be overpriced or underpriced by developer as developers are often unsure of how much acceptance they will be able to gain from the end users. This uncertainty will result in developers not being able to maximize their revenue. Pricing the app beyond what the market can accept would mean that the end users would not be willing to purchase it and thus, revenue earned may not be as expected. Pricing the app too low may also mean that developers earn lower revenue. Thus, a model will be created to help the developer to determine the optimal price of an app. The objectives of this project are to help developers to understand the end user market well and to identify the mean and variance of the price that the end users are willing to pay for an app. The understanding of the end users’ behavior will be done through a survey. The survey results were input into the model to create a normal distribution curve. With the curve and the demand for a certain app, the developer will be able to determine the range of price for that app. Analysis is done for a selected app in the App Store using the model created. The study concludes based on the results obtained from the analysis. From the analysis, it can be seen that developers can choose to price their app at a higher price from USD$1.99 depending on the category of app they develop. Bachelor of Engineering 2011-06-24T07:42:09Z 2011-06-24T07:42:09Z 2011 2011 Final Year Project (FYP) http://hdl.handle.net/10356/45931 en Nanyang Technological University 60 p. application/pdf
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic DRNTU::Engineering::Systems engineering
spellingShingle DRNTU::Engineering::Systems engineering
Low, Hui Ying.
Optimal pricing of Iphone apps under uncertainty
description In recent years, the download of mobile applications has increase tremendously. This project targets on iPhone, one of the smartphones highly sought after in the market right now. An iPhone comes pre-installed with an application, “app store”, which is developed by Apple for users to download other apps, be it game, social networking etc. Apps in the store can either be downloaded for free or at a price. The app may sometimes be overpriced or underpriced by developer as developers are often unsure of how much acceptance they will be able to gain from the end users. This uncertainty will result in developers not being able to maximize their revenue. Pricing the app beyond what the market can accept would mean that the end users would not be willing to purchase it and thus, revenue earned may not be as expected. Pricing the app too low may also mean that developers earn lower revenue. Thus, a model will be created to help the developer to determine the optimal price of an app. The objectives of this project are to help developers to understand the end user market well and to identify the mean and variance of the price that the end users are willing to pay for an app. The understanding of the end users’ behavior will be done through a survey. The survey results were input into the model to create a normal distribution curve. With the curve and the demand for a certain app, the developer will be able to determine the range of price for that app. Analysis is done for a selected app in the App Store using the model created. The study concludes based on the results obtained from the analysis. From the analysis, it can be seen that developers can choose to price their app at a higher price from USD$1.99 depending on the category of app they develop.
author2 School of Mechanical and Aerospace Engineering
author_facet School of Mechanical and Aerospace Engineering
Low, Hui Ying.
format Final Year Project
author Low, Hui Ying.
author_sort Low, Hui Ying.
title Optimal pricing of Iphone apps under uncertainty
title_short Optimal pricing of Iphone apps under uncertainty
title_full Optimal pricing of Iphone apps under uncertainty
title_fullStr Optimal pricing of Iphone apps under uncertainty
title_full_unstemmed Optimal pricing of Iphone apps under uncertainty
title_sort optimal pricing of iphone apps under uncertainty
publishDate 2011
url http://hdl.handle.net/10356/45931
_version_ 1759854370714812416