Zohar Gilad runs Fast Simon, a company that helps retailers optimize their websites. Instead of offering a variety of prices, you may want to show high-end items to customers with a free purchase history, and off-the-shelf items to bargain hunters. Targeted coupons for hesitant browsers create personalized prices with different names and create deals that might not have happened.
“For example, if you search for something and don't buy it, you might get an email that says, 'Hey, you have great taste. I see you're looking for black boots. I saw it. Here's a 20 percent coupon,” Gilad said. “I think personalization is good when done right and can serve both shoppers and merchants well.”
Nevertheless, some retailers prefer the loyalty that comes from stable prices, even if it means giving up short-term profits. Walmart has an “everyday low prices” approach, avoiding coupons and rarely offering discounts. “It helps us earn our customers' trust because they don't have to chase sales and can count on us to consistently provide low prices,” said Molly Blakeman, a Walmart spokeswoman. ” he said.
Retailers also need to be careful to avoid any appearance of discrimination. The Princeton Review charges higher fees for test prep in certain ZIP codes, with ProPublica revealing that Asian American students tend to pay higher fees than other groups. became the subject of an investigation. Researchers found that in Chicago, Uber and Lyft's pricing algorithms resulted in higher fares in areas with large non-white residents. The companies said pricing is based on demand patterns and is not intended to discriminate.
Erin Witte, director of consumer protection for the Consumer Federation of America, said the most important factor is that shoppers understand the rules created by merchants. When there is an “information imbalance,” problems arise, especially when it comes to something as existential as food, which may have contributed to Wendy's backlash.
“If everyone feels like they can meaningfully participate in price negotiations, then everyone will have some understanding that companies can make money in deals,” Witte said. “But when you, as a consumer, feel like you're subject to price manipulation that you don't have access to and certainly can't predict, it feels very unfair.”
audio creator sarah diamond.