Monday, July 22, 2019

Why dynamic and personalized pricing haven't taken over retail — yet

Retail Dive
All the way back in 2000, when Amazon was mostly an online book and media store, it experimented with charging different prices to individual customers for the same DVDs.

The customer response was so swift and negative that, nearly 20 years later, the e-tailer still avoids the practice. Customers caught Amazon treating them differently, and weren't having it. As one academic put it not long after, Amazon had played around with one of the internet's "wonder-tools," but customers "felt hoodwinked by the random prices." . . . more