REGISTER   |   LOGIN   |   HELP
Home  |  Blogs  |  Message Boards  |  Webinars  |  Resources |  By Channel
The Results Are In: Presenting Data to Decision Makers
Dec 1 - Dec 5
Join 5 interactive classes, earn credits, & chat with peers
 
... and more
Contrary Opinion | Dynamic Pricing: The Plus & the Minus

Have I Got a Deal for You

NO RATINGS
View Comments: Newest First | Oldest First | Threaded View
Page 1 / 5   >   >>
Doug_F
User Rank
Prospector
Dynamic Pricing - a social good!
Doug_F   1/9/2013 10:48:11 AM
NO RATINGS
I'm sure this post will generate a ton of comments, but... dynamic pricing is a social good! 

I work with airlines to help them price. I also work with manufacturers to help them price.  The bottom line is this:  dynamic pricing allows a company to offer a price that is at or below a customer's willingness to pay for their good.  This provides more customers with the opportunity to consume more goods that they need and want, while still offering the manufacturers / providers a profitable enterprise.  

As an example, prior to airlines using dynamic pricing, the number of miles flown was relatively small, and flying was only affordable by business travelers or the elite.  With the advent of dynamic pricing, airlines now can offer a seat for less to the casual traveler (because they can still charge higher to the business traveler), allowing more people to fly to more places.   I think this is a good thing!

Manufacturers have experienced similar benefits.  One company I work with offered their main product in two ways - one came with faster delivery, superior customer service, better documentation, and more options, but only if their customers were willing to pay for it.  Those that were, did;  those that were not willing to pay still received the product, but without the extra things they did not value. 

In this way, companies can offer their product to a wide range of customers, maintaining some "economic surplus" for all customers and keeping them in business. 

Alexis
User Rank
Data Doctor
Re: Not for me
Alexis   1/1/2013 10:34:46 AM
NO RATINGS
We all know the airlines do this and we all have a lot of resentment about the policy!

Lyndon_Henry
User Rank
Blogger
Re: Not for me
Lyndon_Henry   1/1/2013 9:27:58 AM
NO RATINGS
..

Beth writes


 the article you cite notes that retailers risk destroying a brand if it becomes "very public that retailers are charging different customers different prices at the same time." Isn't this what the airlines do?  -- and, yet, people still fly. I don't think people will like the practice, but I would be surprised to see huge backlash.


 

Well, as I've said before, the public's capacity to tolerate abuse continues to amaze me.  How will the public react to this?  Backlash, acceptance, or something unexpected?

Adopting a kind of Wheel of Fortune model to consumer pricing would, it seems to me, change people's shopping and budgeting practices, but in what way, remains to be seen.

My colleague arranges and bankrolls travel for our professional trips, so I don't have much direct personal experience with the new frenzy of dynamic pricing by the airlines.  However, it's almost driving my friend beserk.  His reaction seems to be to try to find some alternative way to travel, or else to avoid making the trip altogether.  Maybe that's a clue to the contours of a more widespread "backlash", but it's too early to tell.

 

Lyndon_Henry
User Rank
Blogger
Re: Not for me
Lyndon_Henry   12/31/2012 3:03:19 PM
NO RATINGS
..

Sandra writes


 I do agree there is a fine line and the practice has to be clear. I thought of another example: Jewelry. When you go in to a nice jewelry store, they size you up, much like a car salesman would, and decide what their sliding scale of "dealing" will be. So my great price for a ring might not be the same as the next person to walk in the door. 


 

Ah — this is the "If the customer blinks..." routine.  I know it well.

You quote a price (for a product or service), and if the customer blinks (indicating he or she is a bit frightened by the price), your next line is something like "Of course, we usually give a 10% discount for cash..." or something along that theme.

 

kicheko
User Rank
Blogger
Re: Pricing games
kicheko   12/31/2012 9:14:25 AM
NO RATINGS
Although i disagree with the concept of price differentials overall, i tend to think that it is much better online because then at least you aren't being jusdged based on your appearance or some other unrelated factor. It is likely to be closer to fair and you can hold them to their word as opposed to physical stores where you could end up paying even double for an item.

BethSchultz
User Rank
Blogger
Re: Not for me
BethSchultz   12/28/2012 8:47:31 PM
NO RATINGS
Lyndon, the article you cite notes that retailers risk destroying a brand if it becomes "very public that retailers are charging different customers different prices at the same time." Isn't this what the airlines do?  -- and, yet, people still fly. I don't think people will like the practice, but I would be surprised to see huge backlash.

BethSchultz
User Rank
Blogger
Re: Putting the real time in multiple shopper browse and buy
BethSchultz   12/28/2012 8:40:51 PM
NO RATINGS
Ha. Would you believe I literally just ciicked "Buy" on three bridesmaid dresses? (daughters standing up for my sister's wedding). i think the online process was pretty smooth without real-time collaboration, to be honest. The bride texted, "Hey, check out these dresses." All the bridesmaids looked, liked, and ordered (from three different cities). Nobody balked or complained about color or style. Then again, these dresses were so hugely on sale -- reduced from $240 to $24 -- so who could complain?! I'd rather retailers spend their efforts elsewhere.

sgittlen
User Rank
Blogger
Putting the real time in multiple shopper browse and buy
sgittlen   12/28/2012 5:38:01 PM
NO RATINGS
Something else to throw to everyone: Companies will have to build collaborative apps geared toward the need for real-time browsing among multiple parties vs. click and send and look at later. For instance, bridesmaids online at the same time should all be able to look at a few dresses and hit buy.

sgittlen
User Rank
Blogger
Re: Not for me
sgittlen   12/28/2012 5:32:59 PM
NO RATINGS
@Lyndon, thanks for sharing this. I do agree there is a fine line and the practice has to be clear. I thought of another example: Jewelry. When you go in to a nice jewelry store, they size you up, much like a car salesman would, and decide what their sliding scale of "dealing" will be. So my great price for a ring might not be the same as the next person to walk in the door. 

Maryam@Impact
User Rank
Blogger
Pricing games
Maryam@Impact   12/27/2012 12:56:26 PM
NO RATINGS
I have had the same experience with Target, Children's place and The Gap; they all have similar policies so the consumer needs to shop online before going in store. I have seen much wider price differentials for the same product online vs. in store for the same vendor. As a consumer it irritates me but I have also made it the stores responsibility to honor the difference either through a return or call to customer service. I personally think its poor proctice and creates channel conflict unnecessarily, it also create consumer distrust.

Page 1 / 5   >   >>
More Blogs from Point / Counterpoint
Companies seeking to extract maximum value from data and statistics need a specialized data visualization expert.
Chances are you've already got good data visualization experts on staff, even if you don't know it yet.
Banks have tons of customer data at their disposal; unfortunately not all will use it scrupulously.
If banks want to know more about consumers, and act on it with customized offers, then let them have at it.
Using big-data to drive retail prices up and down several times a day just seems likely to make already skittish consumers more anxious.
Digital Audio
Latest Archived Broadcast
The analytics infrastructure you choose has a major impact on analytics performance. Join us as we talk to Jim O'Reilly about choosing the best infrastructure for your needs.
Quick Poll
Readerboards
Have a question or topic but don't want to write a blog? Post it on our readerboards and get feedback from the community!
MORE READERBOARDS
AllAnalytics on Twitter
AllAnalytics Twitter Feed
AllAnalytics House Ad
Upcoming Events
for the Business and IT Communities
Executive forums with additional hands-on learning opportunities offered around the world
Each ideal for practitioners, Business leaders & senior executives
Winner announced December 9
#DSD14
Understanding the Big Data Landscape
The Bloor Group live webinar
December 10th at 4 PM ET
December 11, 2 PM ET
@Dataversity @DanSoceanu
December 8-12 | Ft. Lauderdale, FL
#dgconference
Hadoop Architecture for Analytics and Data Management
The Bloor Group and SAS live webinar
December 16th, 4 PM ET
December 17, 2 PM ET
@SASDataMGMT @SASsoftware #datamanagement
NRF Retail's Big Show 2015
The flagship industry event of the National Retail Federation, Retail's Big Show is an annual event held over four days in New York City. As the world's leading retail event, the Big Show brings together 30,000 retail professionals and vendors from more than 86 countries, and features more than 100 education sessions, 270 speakers and 550 exhibitors. The conference connects retail solution providers with retail executives searching for the most effective solutions, tools and technologies.
January 11 - 14, 2015
Atlanta, Georgia
AllAnalytics Video Blogs
Canada Post on Data Delivery
James Smith, lead of enterprise data governance for ...

02:53

2 comments
Big Data Checks In
Roger Ares, vice president of analytics at Hyatt ...

03:45

5 comments
Good Data, Smarter Travel
iJET International's Rich Murnane, Director of ...

2:50

4 comments
Healthcare Data Needs a ...
Tackling healthcare data management challenges ...

2:39

0 comments
In the Talent Sweet Spot
Gen Y shapes the new analytics workforce.

3:25

0 comments
A2 on the Road
What we found at last month's SAS Global Forum 2014.

2:28

0 comments
T-Mobile Hears Data's Call
Internal customer data provides an analytics ...

2:50

0 comments
A Is for Analytics in Academia
Professors and students agree that access to ...

4:11

0 comments
Advocating for Analytics ...
Analytics and business experts explore what it ...

5:51

0 comments
Analytic Myths: True or False?
Analytics experts give us their perspective on four ...

4:29

0 comments
We'll Be Your Eyes & Ears
We'll be on the scene at SAS Global Forum events in ...

2:15

0 comments
7 Tips for Deploying ...
We chat with Analise Polsky, a data visualization ...

33:15

0 comments
Top Big Data Platforms
All Analytics editors Beth Schultz and Michael ...

31:53

3 comments
Attention on Retail Shoppers
The retail store of the future will track customers ...

02:14

16 comments
Demand-Driven Forecasting
Charles Chase, chief industry consultant for the ...

02:22

1 comment
Live Video
On-demand Video with Chat
As retailers evolve toward an omnichannel environment, much of their success will depend on how effectively they use big-data and analytics.
AllAnalytics Videos
Intro to Visual Analytics
Find a way to visualize your data and watch it come ...

1:58

0 comments
Visual Analytics, Instant ...
Analytics results delivered in visual form are ...

2:06

5 comments
Big Data, Fast Infrastructure
Big data calls for a high-performance analytics ...

3:35

6 comments
Red Hot Analytics
Jayson Tipp, Redbox VP of Analytics and CRM, ...

3:51

9 comments
Hotelier Checks Out Analytics
InterContinental Hotels Group has woven analytics ...

06:55

11 comments
Like Us on Facebook
Point/CounterpointBlog
LEADERS FROM THE BUSINESS AND IT COMMUNITIES DUEL OVER CRITICAL TECHNOLOGY ISSUES

The Current Discussion

Visual Analytics: Who Carries the Onus?
The Issue: Data visualization is an up-and-coming technology for businesses that want to deliver analytical results in a visual way, enabling analysts the ability to spot patterns more easily and business users to absorb the insight at a glance and better understand what questions to ask of the data. But does it make more sense to train everybody to handle the visualization mandate or bring on visualization expertise? Our experts are divided on the question.
The Speakers: Hyoun Park, Principal Analyst, Nucleus Research; Jonathan Schwabish, US Economist & Data Visualizer
MORE POINT/COUNTERPOINT BLOGS
About Us  |  Contact Us  |  Help  |  Register  |  Twitter  |  Facebook  |  RSS


Beth Schultz
Canada Post on Data Delivery

5|12|14   |   02:53   |   (2) comments


James Smith, lead of enterprise data governance for the Canadian postal service, explains how and why the organization has embraced an enterprise data governance program.
Michael Steinhart
Big Data Checks In

4|30|14   |   03:45   |   (5) comments


The hospitality industry gathers massive amounts of customer data, and mining that data effectively can yield tremendous results in terms of improved CRM, better-targeted marketing spend, and more efficient back-end processes. Roger Ares, vice president of analytics at Hyatt Corp., discusses the ways he and his staff use big data.
Beth Schultz
Good Data, Smarter Travel

4|24|14   |   2:50   |   (4) comments


Charged with keeping track of travel assets, including employees, iJET International relies on data management best-practices and advanced analytics to keep its clients in the know on current and potential world events affecting travel, Rich Murnane, Director of Enterprise Data Operations & Data Architect, told All Analytics in an interview from the 2014 SAS Global Forum Executive Conference.
Beth Schultz
Healthcare Data Needs a Booster

4|23|14   |   2:39   |   (0) comments


W. Ed Hammond, Director of the Duke Center for Health Informatics, spoke from the recent 2014 SAS Global Forum Executive Conference about the data management challenges involved in healthcare today.
Beth Schultz
In the Talent Sweet Spot

4|23|14   |   3:25   |   (0) comments


Jason Dorsey, chief strategy officer for the Center for Generational Kinetics and keynote speaker at last month's SAS Global Forum 2014, describes how Gen Y professionals are enhancing the makeup of multigenerational analytics organizations.
Beth Schultz
A2 on the Road

4|22|14   |   2:28   |   (0) comments


From analytics talent development to the power of visual analytics, All Analytics found a variety of common themes circulating throughout the exhibition floor and session discussions at the 2014 SAS Global Forum and SAS Global Forum Executive Conference events held last month in Washington, DC.
Beth Schultz
T-Mobile Hears Data's Call

4|22|14   |   2:50   |   (0) comments


Talking with All Analytics live from the 2014 SAS Global Forum Executive Conference, Eric Helmer, senior manager of campaign design and execution for T-Mobile, discussed the importance of customer data -- starting internally -- in devising the mobile operator's marketing plans.
Beth Schultz
A Is for Analytics in Academia

4|21|14   |   4:11   |   (0) comments


Interviewed live at SAS Global Forum 2014, professors and students agree that access to enterprise analytics software in academic programs better prepares graduates for their careers.
Beth Schultz
Advocating for Analytics Culture

4|21|14   |   5:51   |   (0) comments


Speaking at the recent SAS Global Forum Executive Conference, analytics executives, business experts, and SAS insiders explore what it means to build an analytics culture.
Beth Schultz
Analytic Myths: True or False?

4|21|14   |   4:29   |   (0) comments


At the recent 2014 SAS Global Forum Executive Conference, five analytics experts give us their perspective on whether four common myths about IT and analytics are true or false.
Beth Schultz
We'll Be Your Eyes & Ears

3|20|14   |   2:15   |   (0) comments


We'll be on the scene at SAS Global Forum events in Washington, D.C., March 23 to March 25, glad to share what we learn with our community members.
Beth Schultz
7 Tips for Deploying Visualization

3|7|14   |   33:15   |   (0) comments


We chat with Analise Polsky, a data visualization thought leader on the SAS Best Practices team, about what you need to know before you deploy data visualization.
Michael Steinhart
Choosing a Big-Data Analytics Platform

2|19|14   |   31:53   |   (3) comments


The big-data analytics market can be a confusing place. Among the vendors vying for your dollars are traditional database management providers, Hadoop startup services, and IT giants. In this video, All Analytics editors Beth Schultz and Michael Steinhart sit down in a Google+ Hangout on Air with Doug Henschen, executive editor of InformationWeek. Henschen discusses use cases for big-data analytics, purchase considerations, and his recent roundup of the top 16 big-data analytics platforms.

Related posts:

— Michael Steinhart, Circle me on Google+ Follow me on TwitterVisit my LinkedIn pageFriend me on Facebook, Executive Editor, AllAnalytics.com

Michael Steinhart
Keeping a Close Eye on Shoppers

2|13|14   |   02:14   |   (16) comments


At the National Retail Federation BIG Show last month, All Analytics executive editor Michael Steinhart noted a host of solutions for tracking and analyzing customer activity in retail stores. From Bluetooth beacons to RFID tags to NFC connections to video analytics, retailers must find the right combination of tools to help optimize the shopper experience, streamline operations, and boost revenues.

Related posts:

— Michael Steinhart, Circle me on Google+ Follow me on TwitterVisit my LinkedIn pageFriend me on Facebook, Executive Editor, AllAnalytics.com

Michael Steinhart
Real-Time Demand Drives Forecasting

2|11|14   |   02:22   |   (1) comment


The days when historical shipment trends and gut feelings were enough to forecast retail demand accurately are long over. SAS chief industry consultant Charles Chase outlines the benefits of pulling real-time sales information from point-of-sale and product scanner systems, then flowing that data into dynamic forecasting tools from SAS.

— Michael Steinhart, Circle me on Google+ Follow me on TwitterVisit my LinkedIn pageFriend me on Facebook, Executive Editor, AllAnalytics.com

Videos
Intro to Visual Analytics

6|5|13   |   1:58   |   (0) comments


With today's advanced visual analytics tools, you can stream data into memory for real-time processing, provide users the ability to explore and manipulate the data, and bring your data to life for the business.
Videos
Visual Analytics, Instant Insight

5|16|13   |   2:06   |   (5) comments


Dynamic data visualizations let analysts and business users interact with the data, changing variables or drilling down into data points, and see results in a flash. Advance your use of data visualization with tools that support features like auto-charting, explanatory pop-ups, and mobile sharing.
Videos
Big Data, Fast Infrastructure

2|14|12   |   3:35   |   (6) comments


No doubt your enterprise is amassing loads of data for fact-based decision-making. Hand in hand with all that data comes big computational requirements. Can traditional IT infrastructure handle the increasing number and complexity of your analytical work? Probably not, which is why you need a backend rethink. Big data calls for a high-performance analytics infrastructure, as Fern Halper, a partner at the IT consulting and research firm, Hurwitz & Associates, discusses here.
Videos
Red Hot Analytics

1|10|12   |   3:51   |   (9) comments


Redbox's bright-red DVD kiosks are all but ubiquitous these days, located in more than 28,000 spots across the country. Jayson Tipp, Redbox VP of Analytics and CRM, provides an insider's look at how the company has accomplished its phenomenal nine-year growth.
Videos
Hotelier Checks In With Analytics

12|14|11   |   06:55   |   (11) comments


InterContinental Hotels Group (IHG), a seven-brand global hotelier, has woven analytics into the fabric of its operations. David Schmitt, director of performance strategy and planning, shares IHG's analytics story and his lessons learned.