“Personalized” prices are those that are customized for buyers. Specifically, this would mean that you z. B. should pay more for the same product in the same shop than another customer. TECHBOOK explains how this happens and what experts recommend to protect yourself from personalized prices.
Prices in online shops are constantly changing. It’s no wonder that you can sometimes lose track of things. Among other things, the market situation and demand for products and services play a role. But there are also the so-called personalized prices.
What are personalized prices?
Unlike the well-known dynamic prices, which are also used by e.g. B. Depending on the time of day or year or special events, personalized prices are based on the supposed purchasing power of potential customers. These are determined taking various parameters into account, more on that later. The individualized prices are aimed at recognizing the price willingness of potential buyers and exhausting it to the maximum.
In Germany, personalized prices have not yet been adequately researched and documented. However, analysts firmly believe that this type of price discrimination is a problem with us. And if you look abroad, personalized prices have long been proven. In the USA, for example, it is known that higher prices are charged for iPhone users than for users of Android smartphones.
How are personalized prices determined?
In addition to the device that the potential buyer uses when shopping online, there are a number of other personal criteria that are included in the generation of personalized prices. For example, your place of residence. And also based on their purchase history, users are assigned to specific customer groups and these in turn have a supposed willingness to pay. Algorithms are used for this. So if you use an Apple device, for example, live in a more expensive city and often buy high-priced products, you will quickly end up in a group whose relatives are considered to be particularly willing to pay.
dangers for customers
Of course, it can happen that price individualization is also advantageous for customers. Because once again to understand: The procedure should enable retailers to make as many purchases as possible. Less well-funded consumers are therefore sometimes shown cheaper prices, which they are willing to pay. Customers with higher purchasing power, on the other hand, often have to pay more than originally intended.
The algorithms offer even more far-reaching possibilities. Tatjana Halm from the Bavarian consumer advice center warns of this. For example, a transport service could link its prices to the status of its passengers’ mobile phone batteries. One possible theory is that if the battery level is low, the customer is probably stressed and more willing to pay a higher price.
This is how you can protect yourself
The less data a company has, the less basis it has for setting individual prices. Consumers are therefore best generally sparing with their data. It makes sense to regularly delete cookies in the browser settings. In addition, the Internet browser’s private mode (sometimes: incognito window) hides traces on the Internet, reminds consumer advocate Halm.
Very important: Pay attention to the small print if you want to complete a purchase. According to a new EU directive, online retailers and marketplaces must at least point this out if they work with personalized prices.