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In Econ, the latter is called differential pricing and there is nothing evil about it at all. http://www.pricingforprofit.com/pricing-explained/differential-pr
by dmfdmf 14y ago
In Econ, the latter is called differential pricing and there is nothing evil about it at all.
http://www.pricingforprofit.com/pricing-explained/differential-pricing.php http://www.pricingforprofit.com/pricing-explained/differenti...
- InclinedPlane 14y agoThat depends on your moral code, of course.
- dmfdmf 14y agoWhich in turn depends on your view of Man.
- bigiain 14y agoWe knew that _downward_ differential pricing worked (in terms of increasing conversions) - a popup saying "Hi, you're a return visitor to our website, we can discount this room rate 10% if you book today) always increased conversions. We sure as hell _experimented_ to see if the decrease in conversions by bumping margins (and hence prices) up was worthwhile in terms of total profit. I'd happily make an argument that if the first is morally "OK" then so is the second…
- rwolf 14y agoYour phrasing here suggests that you work for orbitz or a similar company. Is that accurate?
- bigiain 14y agoSame field, but not since 2008. I was doing this in early 2001.
- hythloday 14y agoa popup saying "Hi, you're a return visitor to our website, we can discount this room rate 10% if you book today" always increased conversions. Did you also test a popup saying "Hi, you're a first-time visitor to our website, we can discount this room rate 10% if you book today"? :)
- excuse-me 14y agoIt't NOT differential pricing, that would be offering the same product top Mac users for more money. They are instead offerent more expensive hotels to Mac users - on the reasonable assumption that Mac owners are higher spenders compared to somebody connecting from a free PC in a public library.
- pbreit 14y agoI presume you were downvoted because the responder specifically referred to the "latter" description: "or are they showing the exact same offers but with the prices raised".