Wednesday, June 01, 2005
Study: Shoppers Naive About 'Customized' Retail Pricing Online
Most American consumers don't realize Internet merchants and even traditional retailers sometimes charge different prices to different customers for the same products, according to a new survey.
The study, ``Open to Exploitation,'' found nearly two-thirds of adult Internet users believed incorrectly it was illegal to charge different people different prices, a practice retailers call ``price customization.''
...It said 87 percent of people strongly objected to the practice of online stores charging people different prices for the same products based on information collected about their shopping habits.
...First-time buyers at a retailer could see higher prices than a firm's repeat customers, and retailers may not offer discounts to consumers who buy the same brands regularly without even looking at alternative products on the same site.
...The study urged government to require retailers to disclose exactly what information is collected about customers and how the data is used, and it urged schools to teach students better how to protect themselves as consumers.
Internet Week 6/1/05
The study, ``Open to Exploitation,'' found nearly two-thirds of adult Internet users believed incorrectly it was illegal to charge different people different prices, a practice retailers call ``price customization.''
...It said 87 percent of people strongly objected to the practice of online stores charging people different prices for the same products based on information collected about their shopping habits.
...First-time buyers at a retailer could see higher prices than a firm's repeat customers, and retailers may not offer discounts to consumers who buy the same brands regularly without even looking at alternative products on the same site.
...The study urged government to require retailers to disclose exactly what information is collected about customers and how the data is used, and it urged schools to teach students better how to protect themselves as consumers.
Amazon got in trouble a few years ago when they got caught giving newbies cheaper prices than people who had already purchased from them. Looks like the idea is catching on again.
Internet Week 6/1/05
# posted by Lynn Wegley @ 6:32 PM 
