Wednesday 25 January 2012

Will ‘behavioural pricing’ affect your behaviour?

'Behavioural pricing' tailors pricing to individual users - with special offers targeted to certain shoppers, but also taking into account information from social networks such as Facebook or Twitter
Online shops already have an unprecedented amount of information at their fingertips - from whether you've purchased from them before, to what sites you've visited before you arrive at their shop, accessible via browsing history.
If price is simply part of the total shopping experience then it is surely appropriate to match price to shopper need?
In the same way, regional pricing variations in the same retailer’s branches across the country, and even differing prices for the same product in different types of store such as convenience and superstore variants for that retailer, should not be a cause of concern.
Also, reports that Tesco plan to overhaul its stores to reflect location and income of families who shop there, has to be an attempt to improve the shopping eperience 
The real issue with behavioural pricing is potential abuse of the insight, an increasing risk for any retailer attempting to deceive the socially-networked savvy consumer.
Instead of attempting to resist the inevitability of behavioural pricing, suppliers should encourage this move towards more focused shopper-satisfaction by factoring the process into their consumer marketing and varying their trade marketing initiatives according to degree of congruence between consumer-profile of the brand and shopper profile of the retailer.
This will help suppliers to anticipate the evolution of location-based offerings in retailing.
In other words, accept the fact that national conformity and uniform brand positioning is now too blunt an instrument in today’s connected society. This means that patchwork regional brand launches, tailored completely to local tastes will allow a more cost-effective allocation of scarce resources, based upon real need, with pricing simply part of the package.
In fact why not consider the Coca Cola idea whereby a thermometer on the top of a vending machine varies the price of a can with change in temperature….

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