We have long known that online sellers have the ability to offer the same product to different customers at different prices — in fact Amazon was caught doing this back in 2000 with a resulting PR disaster. This is a great article in Slate‘s online magazine which offers some nice detail and examples in a short easy read (“How Much Is That Doggie in the Browser Window?” Slate, December 6, 2010).
What are your thoughts about the pricing tactics described here? Do you think they are ethical or unethical? Why do you feel this way. Please post your answers to the course blog no later than the beginning of class on Thursday, April 7th.
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Unfortunately, I'm not surprised this is happening at all, I see it all the time at my job. It's our company policy not to give pricing over the phone, we always refer them to our website for the most up-to-date pricing because of dynamic pricing strategies. I think that when companies use this strategy online, they are more likely to lose customers because people are noticing it more and more often. Not too many people will shop with multiple browsers on one site, but they are still noticing.
ReplyDeleteI don't really think this is the most ethical way to go about setting price. Ethics is defined at moral principles or values that are specific to a certain culture. If you are selling your items to a certain culture, they should all be treated in a just manner; not just picking and choosing who should get a better deal based on the browser they are using. Who is to some users of one browser are better than others?
The price tactics that are described in this article I believe are a very smart way to test consumers. If they are not conscious of the prices they are paying for, they could easily pay more most of the time. Using digital information to figure out the consumers habits such as how long its in their cart, and how many times they searched for it can help describe the purchasing power the consumer has. Unfortunately for these websites clearing cookies and purposely leaving items in your cart for a long time can reduce the price of your item you are attempting to purchase.
ReplyDeleteI think this is a unethical way of setting prices for items. I might decide to research a product through multiple searches, just because I researched it a lot lets just say tvs, that doesn't mean I am defiantly going to buy one. It just means I am curious in receiving information and pricing on them. What I browse is personal to me, and companies should not be able to see what I do unless authorized to. A login code would be more ethical because I choose when they can view my information, rather than them doing it for me.
After reading this article and noticing it with certain stores I shop at that have online access as well, I'm not that surprised at all. I have stopped shopping with these stores/companies online and only buy stuff from them if it is in store because the in store price is cheaper or if I look at products on one day then turn around a couple days later and check the same product and the price is different.
ReplyDeleteI find this to be unethical in the way they are setting prices for items. Especially since the prices can be different for each different customer they may have. Just because you have a customer that gets on your website from time to time to check prices don't mean the prices should change because you think they are going to purchase them since they are looking at them. With the economy the way it is today, a lot of people still look at products wishing they had the income to purchase them. I find this very unethical and these companies need to change their ways to make things more ethical for their customers.
Companies are in business to make a profit, preferably a large profit. These companies are experimenting with supply and demand, hoping to sell their products for the highest price that people are willing to pay. Technology has opened a door into possible higher profits and most companies are going to work it to their advantage.
ReplyDeleteAs a consumer, I do find these tactics to be unethical. Nobody wants to pay more for the same item as your neighbor; we all want the same, fair price. Consumers don't really care if a company earns a higher profit or not, we just want to save money with our purchases.
I feel that this tactic is very good for people who are frequent shoppers online and for those people who research products. I don't believe this is a good tactic for people who don't necessarily shop online often. It is frustrating on the consumer end of the deal when you are looking at a product one day at one price and then the next day or a few days later it has changed. But for the companies they are profiting from this because people are going to buy the product no matter what it costs if they want it. Some people may not research or keep checking prices of products they will just buy the first one seen.
ReplyDeleteI don't believe this is very a very ethical way to approach things because I think that products should be offered at the same price to everyone who wants to buy it. There can be discounts for frequent shoppers but I don't believe companies should change their prices day to day just off the fact of how often or who is buying a product.
I think this strategy defiantly works because not many people recognize that it is going on. As consumers continue to be aware of this, some will love it and other will despise it. It can be beneficial to the consumer if the company is doing you a favor such as lowering prices of a certain line of a product. Consumers will see this as, “the company cares and caters to my needs and wants.” It can also be a risk that a company is willing to take. I ordered a plane ticket through Orbitz and it was $40.00 more when I got to the final check out station. I was not happy and I felt like the company lied and cheated me into buying the plane ticket. I needed the ticket, so I had no choice but to deal and pay the extra. So I think this strategy can be seen both as unethical and ethical depending on the view and the situation. It will have both good and bad outcomes and could ruin a companies reputation IF they don’t strategize wisely.
ReplyDeleteI think that this price strategy would be hard to detect if you were a one time or occasional user of Amazon.com. I think that customers should really try to be conscious of what they are buying and the prices that the product is normally. While this is not ethical per say, I do think that this is a smart strategy because it seems easy to get away with without customers knowing. As a company,I would use this price strategy but I would be worried about a customer finding out and being upset and not returning to buy products. My overall opinion of this strategy is that it is smart if used effectively.
ReplyDeleteUnfortunately it is a legal act too charge prices described in the article so naturally I would say there is nothing I can do about it to stop them so I will just have to be more careful when I am shopping online. This is a smart way to sell online because it does give the seller more control when it comes to online shopping, consumers have the upper hand. It is ethical to me because if you buy the product at whatever price it is then you must believe that the cost is worth the value of the product. It doesn't seem fair but everyone has a different perception of worth. It's just an unfortunate fact that some people get the better deal. If you are concerned about it than I would just go by the tips they give in the article and do more research before you settle on buying or not buying a product from a site.
ReplyDeleteI would say that Amazon was smart along with other online companies to do this pricing strategy because they have a high potential for a higher profit then predicted, however i feel like it would still be a double edged sword since 1. they are gambling by changing the price and yet they wouldn't know if that consumers like the prices that are given too them. They could very easily say no and look somewhere else. 2. The fact that Amazon was caught doing this kind of strategy and in the long run that could potentially ruin them by causing consumers to lose trust in the company.
ReplyDeleteThe strategy in general to me is unethical. Reason for this is knowing that they do this now, it is unfair regardless of whether or not a consumer is real price conscious. Again with loyalty, they would have gotten caught one way or another and the people buying off of that site would stop because they would think that maybe they probably could have gotten it for cheaper some place else. There goes your loyalty with many customers.
I was amazed after reading the article just how deceitful dynamic pricing can be on the Internet. I understood the concept before reading the article but was quite angry after learning how it is used to make a quick buck off an unsuspecting customer. The use of dynamic pricing by companies seems very unethical to me. Prices should be the same for everyone at least on any given day. I can’t believe that this style of dynamic pricing is not illegal. It’s sad that companies are starting to care less and less about the experience customers have with their products and services. Using dynamic pricing to make extra cash off of uninformed customers is a great way to lose business. People use certain websites because of their low prices, and will be quick to go elsewhere if they change. I would never shop from the same website twice if I found out the price had been altered prior to purchase in order to swindle me.
ReplyDeleteAfter reading the article, I am not suprised at all, this happened to me when I bought my Airline ticket for spring break. Deceitful dynamic pricing isn't legal but it is very unethical. The American Marketing Association Statement of Ethics states "We will tell the truth in all situations and at all times". Clearly these companies using deceitful dynamic pricing aren't members. I think it is very dishonest to what they are doing. I am glad I am now informed of this and will definetly shop a little smarter.
ReplyDeleteI think that the pricing tactic that are described here are smart but I do not like it. I make me wonder if and when has it happen to me. What if I cleared my cookies, look at other sites on a different computer? What then? It has no way of telling if you should get the better price. But at the same point it is ethical because at many places now the do the price match when you go into a store and provide the information to lower the price as well.
ReplyDeleteMy thoughts on the price tactics that were described in the article is that the online reltailer companies are clearly taking advantage of the daily consumer. They try and act like they are helping, but truly in the end are screwing us over. They know the typical American is not going to catch a little cent raise on a product that they usually get, which could then be a humongous profit for the company. What they are doing is completely ethical, but also legal, which allows them to do so.
ReplyDeleteI believe that what the companies are doing is ethical, but to an extent. They aren't being completely honest with the consumer, but at the same time they are trying to improve their revenue, which is a basic goal in business. They need to take in effect that if people start noticing something, they might lose loyal customers and ultimately suffer a lower net income.
After looking at the article, it doesn't surprise me that companies do that. It seems to me that it's just supply and demand going on. I believe shopping in store is a much better, reliable choice. Being an online shopper, this makes me think if I have experienced this without noticing. This is definitely the unethical way to go about things because I feel as if they are tricking the customers and not being honest about the price.
ReplyDeleteWhat are your thoughts about the pricing tactics described here? Do you think they are ethical or unethical? Why do you feel this way.
ReplyDeleteBefore reading this article I knew that online advertising used information from your internet activity to promote products that might interest me. I had no problem with this and considered it to be a helpful and positive thing. My opinion has changed, after reading the article and learning that companies use your information to alter prices for products that you might be interested in. I find this to be very unethical to charge different prices for an item at the same time of day. I am all for advertising that reflects my interests but altering prices of a product because of my past history really results in a great amount of trust lost. It makes question the integrity of the company and lowers my chance of purchasing their product.
Online shopping has become very popular over the years. Especially during the holiday season because, it is way more convenient to shop via the internet rather than to spend all that time in the overcrowded stores that can become very hectic. All of the stores I shop at have online stores and I often find more things online that are more to my liking then if I went to the actually store. I have a better experience shopping online for clothes than when I would go into the actual stores and shop. The internet has such a much wider variety of products and if you don’t like the pricing there are so many options shopping online provides. Online shopping also benefits the business becomes it gives them a direct look into a consumers shopping habits. They can analyze how many times people look for a certain product or brand, that’s why on many websites when you click on something you like they show you other things similar in style or of the same brand. These price tactics help both the business and consumers, because it taps into finding out what the customer wants and needs. But even though the companies have that data doesn’t guarantee that the consumer will make a purchase. There are other factors that you cannot see that can influence a person to spend money on a particular product.
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