[IT1004] Discussion 2

Discussed opinions, answers and trivia for Discussion 2. Produced for module IT1004, National University of Singapore

Transcript

1. Discussion 2
   
   IT1004 AY2012/2013
   
   18th March 2013
   
   

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2. Q1. What are some sites that uses
   dynamic pricing?
   
   •  Airline & travel-related sites
   
   •  Sports ticketing sites (NBA, MLB, Scottish
   Premier League)
   
   •  Retail stores
   
   

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3. Q2. How does Internet help fulfill
   dynamic pricing?
   
   •  Real-time information updates
   
   –  Change price information quickly and cheaply
   
   •  Geolocation
   
   –  IP address + WIFI identifiers
   
   •  Personalized information
   
   –  Cookies
   
   –  Social Media Integration (e.g. Facebook Connect)
   
   •  Browsing Behavior
   
   –  Google Analytics (through Javascript snippets)
   
   

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4. Facebook Connect
   
   

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5. Google Javascript Tracking Code
   Snippet (ga.js)
   
   

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6. At the same time…
   
   •  Price comparisons made easy for consumers
   
   
   Shopbots / Price Aggregators
   
   – MySimon.com
   
   – ShopZilla.com
   
   – PriceGrabber.com
   
   – Decide.com
   
   

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7. http://vimeo.com/52095594
   
   

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8. Q3. How does airlines uses dynamic
   pricing?
   
   Cookies!
   
   •  Specifically: HTTP cookies / Browser cookies
   
   •  Small pieces of data saved from site to browser
   
   •  Typically for enhancing browsing experience
   
   •  CAN BE USED FOR TRACKING BEHAVIOUR
   
   •  Webpage-specific
   
   •  Browser-specific (e.g. Chrome vs Firefox)
   
   

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9. While you stare at the airfare price…
   
   •  Stored cookies interact with webpage (e.g.
   http://www.tigerairways.com/…..)
   
   •  Webpage determines the frequency, periods of
   webpage visit and judges your ‘desire’ for this
   trip
   
   •  Webpage adjusts price accordingly
   
   – Increases price with more page visits
   
   

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10. Cookies or Cache?
    
    •  Cookies store encrypted data that are
    formatted in a unique way readable only to the
    webpage itself
    
    •  Cache stores local standardized files used on
    webpages such as images (JPEG, PNG), HTML
    files and text
    
    

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11. Q4. Pros & Cons of dynamic pricing
    
    Consumer
    
    •  PROS
    
    –  Pay what you want
    
    •  CONS
    
    –  Possible frustration, feelings of
    unjust (Staples.com
    controversy on WSJ)
    
    Retailer
    
    •  PROS
    
    –  Get maximal profits
    
    •  CONS
    
    –  Possible consumer backlash
    (Airline Membership
    controversy)
    
    –  ‘cherry-picking’ from
    consumers; lack of loyalty
    (NBA, NFL concerns)
    
    

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12. Infographics Examples
    
    •  Paying too much for your flight?
    
    – http://visual.ly/are-you-paying-too-much-flights
    
    •  What Google Analytics know about you
    
    – http://visual.ly/2011-web-analytics-review
    
    •  The EU Cookie Law
    
    – http://blog.silktide.com/wp-content/uploads/
    2013/01/Cookie-Law-infographic-reduced-size.png
    
    

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