How Online Marketers Use Your Personal Data to Set Prices

[Chuckt]

Most people who walk into the same store on the same day, expect to pay the same price if they pick out the same item. But it’s a whole different story for online shoppers.

Many online marketers are changing the price in a flash to capitalize on how much they think you’re willing to pay. They’re gauging it by knowing where you live, what you buy, and estimating how much you make. All of this information is collected from your history on the Internet.

ABC News discovered that companies known as data brokers are putting online shoppers into consumer categories with names like “shopping addicts,” “frugal folks,” and “high spenders.”

How Online Marketers Use Your Personal Data to Set Prices - ABC News

 

[Asclepias]

Most people who walk into the same store on the same day, expect to pay the same price if they pick out the same item. But it’s a whole different story for online shoppers.

Many online marketers are changing the price in a flash to capitalize on how much they think you’re willing to pay. They’re gauging it by knowing where you live, what you buy, and estimating how much you make. All of this information is collected from your history on the Internet.

ABC News discovered that companies known as data brokers are putting online shoppers into consumer categories with names like “shopping addicts,” “frugal folks,” and “high spenders.”

How Online Marketers Use Your Personal Data to Set Prices - ABC News

Stores have been doing the same thing every since people started signing up for discount cards. Price setting by area is another thing that has been ongoing. A wealthier community usually pays higher prices for goods vs another area where the income is significantly lower.