4 ms·

Banks turning your purchasing habits into ads

19 points by wavesound 16y ago

cryptoz 16y ago
WOAH. I think it was just yesterday I said on HN that I'd flip out if any bank ever did this. And here we are...This is why cash is great to carry around! http://news.ycombinator.com/item?id=2140095 http://news.ycombinator.com/item?id=2140095
- nobody_nowhere 16y ago
  You should not be surprised. Credit reporting companies sell your score data to credit card and mortgage lenders. Retailers pool your shopping habits into "co-ops" which are used for direct mail and online ads. It goes on and on.
brianbreslin 16y ago
Is this similar to blippys model?
GBKS 16y ago
Not surprised to see this happen. My question is the following: When every company has rewards systems and 70% discounts on coupon sites, coupled with credit card rewards, discounted gift cards, manufacturer coupons and the new ability to get more discounts by adjusting my shopping patterns, how do I know what a product is actually worth? Companies like Scvngr are trying to insert game mechanics into the offline world, but it feels like the retail sector is already way ahead in making us play their discount game.
- gjm11 16y ago
  You know what a product is actually worth by thinking hard about what use or pleasure you'll get from it. If you're currently trying to deduce what things are worth from their prices, you're already getting very wrong answers -- price-setting is a complicated business involving lots of psychological trickery. Sometimes you can sell more units of a product by increasing the price, precisely because lots of people use the "what it costs is what it's worth" heuristic; you can often sell more of product X at $P without changing either X or P, just by introducing a new super-expensive premium version of X that costs $(10*P); etc.
- pasbesoin 16y ago
  I researched a small, b/w laser printer for a friend last week. $100 at Amazon. I return to Amazon yesterday to look for a wrist rest. In the "recently viewed" section of the page, that printer is $130. I've come to consider seriously the implication that ~30% changes in pricing have in aggregate, in the demand this gaming places upon my time and attention. One or two items, I may say "time is money" and just buy. When the entire system starts to feel gamed, like a casino in Vegas, I start looking seriously at my options for simply opting out. Once again, information asymmetry is being used to disadvantage the small player.
jond2062 16y ago
Citi has been doing this for years on their credit card statements. Checking/saving accounts was the next logical step. With the easy money (credit card interest, late fees, debit card interchange fees, etc) drying up, banks will explore every possible alternative to generate revenue and cut costs. Anything short of stealing money right from your account won't surprise me going forward.
kevin_morrill 16y ago
Next step is "pay per buy" with conversion tracking that these companies can clearly track.

19 points by wavesound 16y ago

WOAH. I think it was just yesterday I said on HN that I'd flip out if any bank ever did this. And here we are...This is why cash is great to carry around! http://news.ycombinator.com/item?id=2140095 http://news.ycombinator.com/item?id=2140095

nobody_nowhere 16y ago
You should not be surprised. Credit reporting companies sell your score data to credit card and mortgage lenders. Retailers pool your shopping habits into "co-ops" which are used for direct mail and online ads. It goes on and on.

brianbreslin 16y ago

Is this similar to blippys model?

GBKS 16y ago

Not surprised to see this happen. My question is the following: When every company has rewards systems and 70% discounts on coupon sites, coupled with credit card rewards, discounted gift cards, manufacturer coupons and the new ability to get more discounts by adjusting my shopping patterns, how do I know what a product is actually worth? Companies like Scvngr are trying to insert game mechanics into the offline world, but it feels like the retail sector is already way ahead in making us play their discount game.

gjm11 16y ago
You know what a product is actually worth by thinking hard about what use or pleasure you'll get from it. If you're currently trying to deduce what things are worth from their prices, you're already getting very wrong answers -- price-setting is a complicated business involving lots of psychological trickery. Sometimes you can sell more units of a product by increasing the price, precisely because lots of people use the "what it costs is what it's worth" heuristic; you can often sell more of product X at $P without changing either X or P, just by introducing a new super-expensive premium version of X that costs $(10*P); etc.
pasbesoin 16y ago
I researched a small, b/w laser printer for a friend last week. $100 at Amazon. I return to Amazon yesterday to look for a wrist rest. In the "recently viewed" section of the page, that printer is $130. I've come to consider seriously the implication that ~30% changes in pricing have in aggregate, in the demand this gaming places upon my time and attention. One or two items, I may say "time is money" and just buy. When the entire system starts to feel gamed, like a casino in Vegas, I start looking seriously at my options for simply opting out. Once again, information asymmetry is being used to disadvantage the small player.

jond2062 16y ago

Citi has been doing this for years on their credit card statements. Checking/saving accounts was the next logical step. With the easy money (credit card interest, late fees, debit card interchange fees, etc) drying up, banks will explore every possible alternative to generate revenue and cut costs. Anything short of stealing money right from your account won't surprise me going forward.

kevin_morrill 16y ago

Next step is "pay per buy" with conversion tracking that these companies can clearly track.