Have you ever noticed how prices for certain products suddenly go up around holidays, festivals, or special sales events? From Black Friday sales to Diwali shopping sprees, retailers often adjust prices based on specific occasions. This strategy, known as occasion-based pricing, is a common marketing technique used by brands to capitalize on seasonal demand.

Occasion-based pricing is not just limited to physical goods but also extends to digital services, apps, and even travel bookings. Companies use this approach to maximize sales when customers are more likely to spend, often driven by emotional triggers, gifting needs, or seasonal trends.

In this blog, we'll dive deep into how occasion-based pricing works, its impact on consumers, and why you might pay more for the same product depending on when and how you shop. We'll also explore an interesting comparison between pricing for the same services on iPhone and Android platforms.

iPhone vs. Android: How Platform Pricing Differs

An interesting aspect of occasion-based pricing is how it varies between platforms—particularly between iPhone and Android users. Studies have shown that iPhone users often face higher prices for the same apps, services, and even products compared to Android users. Some are even calling

Key Differences:

App Store vs. Google Play: Certain apps and subscriptions cost more on Apple's App Store than on Google Play. For example, the popular app Tinder charges iPhone users up to 20% more for premium subscriptions compared to Android users.

Hardware & Accessories: iPhone accessories, such as chargers and earphones, are priced higher than their Android counterparts, even during sales events.

Platform Fees: Apple charges a 30% commission on app purchases and in-app transactions, which often leads developers to pass on the cost to iPhone users.

Why the Difference?

Apple users are perceived as more brand-loyal and willing to pay premium prices. Studies have shown that iPhone users spend more on apps and subscriptions compared to Android users, making them a lucrative target for higher pricing.

Example: In 2022, the popular meditation app Calm charged iPhone users $69.99 annually, while the same subscription cost Android users $59.99.

What’s Happening Around – Real Life Case Studies

Popular quick-commerce platform Zepto has found itself in the middle of a social media uproar after users highlighted sharp differences in product prices based on the operating system of their devices. A Bengaluru-based entrepreneur, Vinita Singh, co-founder of Horse Power, flagged the issue, sharing screenshots on LinkedIn that revealed significant discrepancies in pricing.

The Incident That Sparked the Debate

Singh showed two pictures from the Zepto app that show how much 500 grams of green pepper cost. The price was Rs. 21 on an Android device and Rs. 107 on an iPhone for the same item. Singh made it clear that both screenshots were taken at the same time and from the same place. "Zepto, could you explain this further?" The first picture is of Android. "Second Screenshot: iPhone," she wrote, tagging the founders of the app.

Her post went viral very quickly and started arguments on LinkedIn and X (formerly Twitter). Users shared similar experiences, questioning Zepto’s pricing practices. What is this "Apple tax"? They charge vendors up to 35% for in-app purchases, but this applies only to digital goods,” one user commented on X. Some users said that discounts might be different for each account, and one asked, "Were both screenshots taken from the same account?"

In another case, A user named Saurabh Sharma started a debate online when he pointed out that the price of the same item on Flipkart varied based on the user's operating system.

Sharma posted on social media photos from the e-commerce app that showed clear price differences between iPhone and Android users. He wrote, "Android vs. iOS – different prices on Flipkart app." The same Mokobara cabin suitcase costs Rs 4,119 on the Flipkart app for Android and Rs 4,799 on the app for iOS. He also sent photos.

His pictures show that a small cabin suitcase from Mokobara costs Rs 4,119, but you can get it for 65% less on Android. The same product is offered at Rs 4,799 with a 60% discount on an iPhone.

Also, Android users can get a free EMI plan that starts at Rs 1,373 per month, while iOS users can get one that starts at Rs 1,600 per month.

Broader Issues with Discriminatory Pricing

Sometime ago, the Consumer Protection Authority told Ola and Uber that they were charging different prices for different devices. Some users said that prices change not only when it rains, but also when your phone's battery is almost dead. "Shady, yes!" said a third person. Check to see if everyone else does the same thing. Flipkart has been sketchy for a while now.

Social media discussions showed that some e-commerce platforms assume iPhone users have higher disposable incomes, leading to higher prices. Many people agreed with this, but some pointed out that even high-end Android phones, like the Samsung Galaxy S24 Ultra, had higher prices than cheaper Android phones.

The Psychology Behind Occasion-Based Pricing

Brands understand that consumer behavior changes around specific occasions. During festivals, holidays, or special events, people are more inclined to shop, gift, and celebrate. This creates an opportunity for businesses to adjust their pricing strategies.

Why do prices go up during certain occasions?

• Increased Demand: During peak shopping seasons like Christmas, Diwali, or back-to-school periods, demand for products surges, allowing brands to increase prices.
• Emotional Spending: Shoppers are more likely to make impulse purchases when they’re excited about an occasion.
• Limited-Time Offers: The fear of missing out (FOMO) pushes people to buy quickly, even at higher prices.

For example, research by Adobe Analytics found that online prices for popular products during the holiday season increase by an average of 10-15% compared to off-season prices. This trend is not limited to retail but extends to travel, hospitality, and even digital subscriptions.

How Brands Implement Occasion-Based Pricing & Promotions

Brands use several techniques to implement occasion-based pricing and promotions effectively. Here are some common strategies:

1. Discounts & Flash Sales: During major shopping events like Amazon's Great Indian Festival or Flipkart's Big Billion Days, brands offer attractive discounts. However, some products are first marked up before being discounted, making the "deal" seem more valuable than it actually is.

2. Product Bundling: Special festive combo packs are created to increase the average order value. For example, during Diwali, snack brands like Haldiram’s offer gift hampers, while beauty brands bundle skincare products into festive gift sets.

3. Limited-Edition Products: Brands often launch special variants of their products for occasions. Coca-Cola’s holiday-themed bottles or Cadbury’s Diwali gift packs are classic examples.

4. Dynamic Pricing: Some platforms use AI-driven algorithms to adjust prices in real-time based on demand. Airlines and hotel booking platforms are prime examples of this.

During the 2023 Amazon Prime Day sale, many products, including electronics and fashion items, saw price hikes a week before the event, only to be "discounted" back to their original prices during the sale. Shoppers who didn't track prices were easily misled into thinking they were getting a great deal.

Real-World Examples of Occasion-Based Pricing

Occasion-based pricing extends across industries, from fashion and electronics to travel and hospitality. Here are some real-world examples:

1. Fashion & Electronics: During the holiday season, fashion brands often mark up prices before offering "discounts." In India, electronics like smartphones and laptops often see price increases just before festive sales.
2. Travel & Hospitality: Airline tickets and hotel prices spike during peak travel seasons. For instance, flight prices to popular destinations in India often double during Diwali or school vacations.
3. Food & Beverages: Special occasion menus in restaurants or limited-time flavors of popular snacks are often priced higher than regular offerings. Example: In December 2023, a round-trip flight from Delhi to Goa cost INR 9,000 during the off-season but surged to INR 18,000 during Christmas week.

Mechanism Behind "Occasion-Based Pricing"

The mechanism behind occasion-based pricing relies on understanding consumer behavior, market demand, and perceived value during specific occasions or events. The difference in pricing between the same product or service on iPhone and Android often stems from the following factors:

🔑 1. Platform-Specific Market Positioning

• iPhone users are generally seen as premium consumers, as Apple positions itself as a luxury brand. Companies often assume iPhone users have higher purchasing power and may pay more for services like apps, subscriptions, or in-app purchases.
• Android users, with a wider range of device prices, are perceived as more price-sensitive. Pricing is often lower to match this user base.

📊 2. App Store vs. Google Play Commission

• Apple charges a 30% commission on App Store purchases, while Google Play also charges 30%, but it reduces to 15% for certain subscriptions after the first year.
• To maintain profit margins, companies sometimes increase prices for iPhone users to compensate for Apple's higher fees.

📈 3. Dynamic Pricing Based on User Data

• Companies use consumer data and AI algorithms to adjust prices. If an iPhone user often spends more on apps or services, the system might display higher prices compared to an Android user.

🎯 4. Regional and Occasion-Specific Promotions

• During festive sales, holidays, or product launches, companies may offer exclusive discounts on Android platforms, while keeping iPhone prices higher.

Pros and Cons of Occasion-Based Pricing

While occasion-based pricing can be beneficial for both consumers and brands, it also has drawbacks.

Pros:

• Great Deals: Shoppers can enjoy significant discounts if they time their purchases right.
• Product Discovery: Limited-time offers often introduce customers to new products.

Cons:

• Price Exploitation: Consumers may unknowingly pay higher prices during peak demand.
• Impulse Spending: The urgency created by flash sales can lead to unnecessary purchases.

Example: According to a report by the Consumer Federation of America, nearly 40% of shoppers admitted to overspending during holiday sales events in 2023.

How to Shop Smart and Avoid Overpaying

To avoid falling into the trap of occasion-based pricing, consider these tips:

• Compare Prices: Use price comparison websites and apps to check prices across platforms.
• Track Price History: Websites like Keepa and CamelCamelCamel show historical price trends for Amazon products.
• Shop Off-Season: Buy non-perishable goods and big-ticket items during off-peak seasons.
• Look for Coupons & Cashback: Platforms like Honey and CashKaro can help you find extra savings.
• Example: A study by RetailMeNot found that shoppers who used price-tracking tools saved an average of 20% during major sales events.

Conclusion: Is Occasion-Based Pricing Fair or a Marketing Gimmick?

Occasion-based pricing and promotions are powerful tools that benefit both brands and consumers—if approached wisely. While they offer opportunities for savings, they can also lead to overspending if shoppers aren’t careful.

The difference in pricing between platforms like iPhone and Android further highlights how brands tailor their strategies based on user demographics and spending behavior.

So, the next time you are shopping online or see a "limited-time offer," pause, compare, and shop smart. Remember to plan ahead, compare prices, and avoid impulse buys. And when it comes to tech, consider the long-term costs of your platform choice. After all, the best deals often come to those who know the game!

What are your best tips for saving money during holiday sales?

Frequently Asked Questions (FAQs)

1. What is occasion-based pricing?
Occasion-based pricing is a strategy where brands adjust prices based on specific events, holidays, or seasons when consumer demand is high.

2. Why do prices vary between iPhone and Android platforms?
Pricing differences arise because Apple charges higher platform fees, and iPhone users are perceived as more willing to pay premium prices compared to Android users.

3. How can I avoid overpaying during festive sales?
Track price history, compare prices across platforms, and shop during off-peak seasons to get the best deals.

4. Do all brands follow occasion-based pricing?
While not every brand adopts this strategy, most retailers, e-commerce platforms, and travel companies use occasion-based pricing during peak seasons.

5. Is occasion-based pricing legal?
Yes, it is legal as long as brands are transparent about their pricing and do not engage in deceptive practices.