Apple's Brilliant 99 Cent Marketing Strategy

As most of you know, Apple sells songs for the cost of 99 cents per song through iTunes. Apple also sells iTunes gift cards in multiples of say 15, 25, 50. Why does this matter? When you purchase a song through iTunes, you are left with an odd number of credit remaining in your account.
This is brilliant marketing on two fronts, in my opinion. Not only does this strategy play on the psychological effect of 99 cents being cheaper than one dollar, it leaves your account with an odd number of credits. This creates a viscous cycle of purchasing credits for the sake of using the current credits. Its clear that the iPod has been a success, but this strategy has to have played a big part.
Labels: apple, viral marketing









