Skip to comments.Behavioral Pricing: A consumer's worst nightmare, a merchant's dream
Posted on 01/23/2012 6:17:21 AM PST by EnjoyingLife
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.
(Excerpt) Read more at thenextweb.com ...
Sounds like a little counter-information would help the consumer secure bargains. Try it at your own risk, merchants.
It’s the equivalent of negotiating for a car at a car dealer and the salesman leaves the office to get coffee, and while he’s gone, you and your wife discuss every detail of your financial situation, your desire for the car, your best price, etc., all within earshot of the hidden mic.
Then he comes back and nails you.
On a related note, one futurist believes that facebook as we know it is a fad, in that people will tire of sharing their every little detail and reading the details of others on the web.
Oh Honey, I suppose we could live with that car, it would be a little better than nothing if we could get it cheaply enough...
“face book a fad”
Exactly the way I view it.. The only way “they” make anny money on it is to glean info on you and sell it...
I was a fairly avid Facebook user for a while (although not the ridiculous friend collector that some people are). I am seriously considering deactivating my account. The more I consider it, the more I hate the concept.
I dislike Ford F-150 trucks. The ride is lousy on the new ones. But, if the price was right, maybe 25% off the sticker I would consider buying a new 2012.
There is one thing I use it for: Staying in contact with my adult daughters, who all live in Seattle. It matters now that I have moved to Kentucky. It lets me see what they are talking about and sometimes chime in.
I still prefer email, though.
I feel the same way about F-250s. 30% off might change my mind though!
I would suggest to any merchant to use this info to cultivate the customer, not rip him off.
“Its the equivalent of negotiating for a car at a car dealer and the salesman leaves the office to get coffee, and while hes gone, you and your wife discuss every detail of your financial situation, your desire for the car, your best price, etc., all within earshot of the hidden mic.”
Being spied on actually worked for my wife and me. A year after we bought our house, we found out through a neighbor friend that the prior owners had bugged the house to hear comments from potential buyers. Luckily, my wife and I thought the house was too big for us, so we were not talking about how we really wanted it. In fact, we said we would only buy it if the price was right. To make a long story short, we put in a much lower bid than asking and they accepted. Guess it worked against them. Turns out we love the house and property.
Well at least one can find out how smart their FB friends are, most FB individuals give FB everything that FB and the rest of the world don’t need to know like: birth date, home town, highschool, and college, it’s not to smart to give out that kind of information randomly to FB or strangers on FB.
Informational pricing is for those foolish enough to broadcast to the world much personal info, and many cases every move they make or thought they have, on infantile Facebook and the like.
Doubt folks who think personal stuff is actually personal, have to worry.
“That’s kinda creepy.”
Yeah, I know. After finding out that information, I thoroughly searched the house for any listening devices they may have left behind.
I got rid of Facebook a few months ago. It was always a little creepy before, but when they were caught tracking what websites you visit after you log out, I found that to be a violation of privacy (one of many). Now, any time you do a status update with a candidate’s name, they are tracking that and sending it to politico to determine your political leanings.
I have to say being Facebook-free has been one of the best moves I’ve made lately. Now I no longer have to listen to people’s political beliefs, sports trash talking,religious beliefs, etc. I came to the realization that I just don’t care what most other people are doing.
Its real easy and you’d never find them. You can get a free program on the computer that is voice activated, and uses the computer’s microphone....Lock the screen down and there is no way to know or disable it.
Not that I would have possibly used this in the past or anything.....
All the more reason not to buy off the internet before doing a price comparison. And all the more reason not to get on FB or other social network.
That is why it pays to have multiple online identities.. lol
Sure, I am using my real name when I order something, but different email, and my real personal info is no where on the web to identify me.
It’s called bargaining and anyone who has shopped in non-fixed price markets will recognize it.
Willing buyer - willing seller.
The seller wants to get the highest price that will not leave the buyer so bitter that he will not return for another purchase.
The buyer wants it for free, but will often settle for something less than the Suggested Retail Price.
The problem is that many buyers are so emotionally involved in the purchase that they fail to walk away when the deal is not right.
‘A fool and his money are soon parted.’