Price Test Triggers Outrage on Internet :: Essays Papers

Price Test Triggers Outrage on Internet Will dynamic pricing become the next trend in e-commerce? Maybe, to unsuspecting consumers, it already is. The Internet provides consumers with many shopping advantages including the ease and availability of shopping from home, and the benefit of easily comparing merchandise and prices at various online retail locations. Dynamic pricing is a process where retailers (in this case, online) adjust their pricing according to information directly related to the purchasing consumer, or the conditions around them. An example of dynamic pricing in the physical world might be the local coffee shop charging more for hot coffee in the wintertime. This seems rather harmless, does it not? In e-commerce this kind of price fixing is worrisome because of the type of information a web site developer can retrieve from, or add to a visitor's computer using a variety of programming tools. There are few laws or regulations governing the use of the Internet, or protecting consumers' privacy. This c reates a wide open door for online marketing schemes that take advantage of, or deceive the consumer. David Sheffield, or the Washington Post, writes that Amazon.com, one of the leading online retailers, has been implementing a questionable pricing test. Using advanced technology, Amazon was able to place an electronic tag into the computer systems of all their web site visitors. When a consumer visited their web site, it would look for that tag on the visitors system to see if the visitor is a new or existing customer. By knowing this, the site would know what prices to display. Though one would think the repeat customer would benefit from this by getting price breaks, it was actually just the opposite. Amazon.com was charging higher prices for returning customers! Bill Curry, spokesman for Amazon.com, is quoted as saying the price test "was done to determine consumers' responses to different discount levels." However, in an email exchange with a DVDTalk member, an Amazon customer service representative stated "I would first like to send along my most sincere apology for any confusion or frustration caused by our dynamic price test". Whether it was dynamic pricing, or not, the deeper issue of consumers' online privacy still remains. Amazon.com was able to perform this "price test" because of a lack of laws regulating e-commerce, and consumer privacy. There are only a few laws now pertaining directly to Internet related issues, and most of these are state laws, not national. Price Test Triggers Outrage on Internet :: Essays Papers Price Test Triggers Outrage on Internet Will dynamic pricing become the next trend in e-commerce? Maybe, to unsuspecting consumers, it already is. The Internet provides consumers with many shopping advantages including the ease and availability of shopping from home, and the benefit of easily comparing merchandise and prices at various online retail locations. Dynamic pricing is a process where retailers (in this case, online) adjust their pricing according to information directly related to the purchasing consumer, or the conditions around them. An example of dynamic pricing in the physical world might be the local coffee shop charging more for hot coffee in the wintertime. This seems rather harmless, does it not? In e-commerce this kind of price fixing is worrisome because of the type of information a web site developer can retrieve from, or add to a visitor's computer using a variety of programming tools. There are few laws or regulations governing the use of the Internet, or protecting consumers' privacy. This c reates a wide open door for online marketing schemes that take advantage of, or deceive the consumer. David Sheffield, or the Washington Post, writes that Amazon.com, one of the leading online retailers, has been implementing a questionable pricing test. Using advanced technology, Amazon was able to place an electronic tag into the computer systems of all their web site visitors. When a consumer visited their web site, it would look for that tag on the visitors system to see if the visitor is a new or existing customer. By knowing this, the site would know what prices to display. Though one would think the repeat customer would benefit from this by getting price breaks, it was actually just the opposite. Amazon.com was charging higher prices for returning customers! Bill Curry, spokesman for Amazon.com, is quoted as saying the price test "was done to determine consumers' responses to different discount levels." However, in an email exchange with a DVDTalk member, an Amazon customer service representative stated "I would first like to send along my most sincere apology for any confusion or frustration caused by our dynamic price test". Whether it was dynamic pricing, or not, the deeper issue of consumers' online privacy still remains. Amazon.com was able to perform this "price test" because of a lack of laws regulating e-commerce, and consumer privacy. There are only a few laws now pertaining directly to Internet related issues, and most of these are state laws, not national.