Monday
Jun062005
Online Stores Charge Based on Shoppers' Surfing Habits
Monday, June 6, 2005 at 06:20PM
...So says USA Today referring to a study by the Annenberg Public Policy Center of the University of Pennsylvania.
The Web lets shoppers easily compare prices, but it also enables businesses to quietly collect detailed records on a customer's behavior and preferences and set prices accordingly. Doing so is generally lawful unless it discriminates against race or gender or violates antitrust or price-fixing laws.We certainly have promotion "customization" such as loyalty programs, customer-specific coupons, targeted ads, etc. These things are standard practice -- and happen in plain sight. But I would be amazed if "price customization" is really that prevalent at this point. This smells like an Ivy League agenda and academics crying "wolf."
Stores aggressively try to retain loyal customers, while discouraging bargain hunters who check many sites for the lowest price. They are known within the industry as "bottom feeders" who have no brand or merchant loyalty.
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