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Old 01-24-2012, 08:58 AM
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Default Behavioral Pricing: A Consumer's worst nightmare

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What if when you bought a new Macbook, the price was higher because your tweets constantly referenced your love and devotion for Apple? What if Orbitz used the fact that your Facebook Likes include “Party Rocking in Miami” to charge you more for a flight to Miami?

This is called online behavioral pricing. It’s a consumer’s worst nightmare as it uses the traces of your online identity to maximize prices on the products and services you want most. It’s also an ecommerce merchant’s dream.

Behavioral pricing is a form of price discrimination. The goal of price discrimination is to maximize profits by adjusting the price that different customers pay based on data about the consumer. Price discrimination is common offline, such as the Museum of Modern Art charging adults $25 but students only $14.

We’ve already seen online merchants make preliminary attempts at this. When the New York Times unveiled its digital subscriptions, it decided to charge $15 per month to subscribe on your clunky old Blackberry, but $20 per month to subscribe on your iPad. Yet, it doesn’t cost the New York Times more to deliver content to the iPad. Instead the assumption was that you, the owner of a $500 tablet, would be more willing to pay than your average smartphone user. But this rudimentary price discrimination is a mere hint of what’s coming with behavioral pricing…
Behavioral Pricing: A Consumer?s Worst Nightmare

I've experienced this already, while hunting down a flight. Check flights for X destination, discussed it with my spouse, and then went back to book it, and viola, the price had changed in a matter of an hour. Oh, it's possible the price for everybody did change, but since I've experienced it more than once, I would say it's already in play.

(oh, and redd? I think the cheesesteak place just changed their prices, just for you, lol.....)
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Old 01-24-2012, 09:19 AM
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Default Re: Behavioral Pricing: A Consumer's worst nightmare

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Originally Posted by GottaGo View Post
Behavioral Pricing: A Consumer?s Worst Nightmare

I've experienced this already, while hunting down a flight. Check flights for X destination, discussed it with my spouse, and then went back to book it, and viola, the price had changed in a matter of an hour. Oh, it's possible the price for everybody did change, but since I've experienced it more than once, I would say it's already in play.

(oh, and redd? I think the cheesesteak place just changed their prices, just for you, lol.....)
****. I've experienced that too with flights. I've had them nearly double in cost in the matter of an hour or two while I searched other options. You really think they were changing the price specifically for us based on our IP address or something? I mean, if we'd used a different computer the price would have been the same as what we originally saw?
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Old 01-24-2012, 10:16 AM
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****. I've experienced that too with flights. I've had them nearly double in cost in the matter of an hour or two while I searched other options. You really think they were changing the price specifically for us based on our IP address or something? I mean, if we'd used a different computer the price would have been the same as what we originally saw?
Perhaps we should test it.... don't know if it's by cookies or ip address, but it's how the site knows it's you. As I said, I don't want to go all tinfoil-hat, but it fits right in with the information in the article, and I have recently been discussing 'targeted' internet advertisments with some friends on another board. It fits.

I'll let you know, or you let me know next time you're hunting a flight, and we'll give it a try testing the theory.
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