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[IT1004] Discussion 2

[IT1004] Discussion 2

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

Kelvin Tay

March 18, 2013

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  1. Q1. What are some sites that uses dynamic pricing? • 

    Airline & travel-related sites •  Sports ticketing sites (NBA, MLB, Scottish Premier League) •  Retail stores
  2. 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)
  3. At the same time… •  Price comparisons made easy for

    consumers Shopbots / Price Aggregators – MySimon.com – ShopZilla.com – PriceGrabber.com – Decide.com
  4. 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)
  5. 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
  6. 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
  7. 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)
  8. 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