Tuesday, September 4, 2012

Stores banking on personalized loyalty programs

"Firms are always interested in charging different customers different prices," says Paul Ellickson, who teaches economics and marketing at the University of Rochester.

Ellickson says some people just don't notice price very much. They'll pay full price for what they want. That's profitable to supermarkets. What's even more profitable, however, is if supermarkets can offer a discount to the other folks, to nudge them into buying as well. Ellickson says we're already used to paying different prices for some things.
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