Posts Tagged With: consumer pricing

Extensive information is collected on every buying action. This deep data allows companies to adjust prices in two ways:

1) Surveillance pricing uses personal data and past behaviors to adjust prices for a person’s willingness to pay. To minimize this situation:

• shop online in private mode.
• compare prices before logging onto the shopping site.
• use a price-tracking website to know if an item costs more than you are willing to pay. 
• don’t be tempted to “buy-up” by purchasing a more luxurious item than the basic model you intended to buy.

2) Surge pricing adjusts the price of an item based on demand. When demand is high, prices are raised for ride sharing, hotel rooms, air travel, concerts, or online products. To avoid:

• plan ahead to take advantage of off-peak times.
• use a price alert app.
• look for discounts and promotions for frequent buyers. 

For additional information on pricing tricks, go to:

https://clark.com/shopping-retail/surveillance-pricing/

Teaching Suggestions

• Have students observe prices online and in stores to monitor trends for items they have bought or plan to buy.
• Have students do online research to identify price alert apps and to develop a strategy to obtain the best prices for items they buy frequently.

Discussion Questions 

1. What features of a price alert app could help consumers make better purchasing decisions?
2. Describe actions a person might take to minimize the influence of surveillance pricing and surge pricing on a person’s buying activities.