The Pros And Cons Of Price Discrimination In Business

As we know, there are a lot of business types in the world. Each of the businesses has their own strategies to survive in this competitive business world. Economically, price discrimination is usually regarded as desirable, since it often increases the efficiency of an economy. In contrast, it often arouses strong opposition from a public. Like in this particular case, which is online price discrimination, a majority of consumers think that this kind of discrimination is illegal. Generally, discrimination has a very negative implication in our society, and various forms of it, which those based on age, gender, race and religion, are illegal. However, price discrimination is a pricing strategy that is widespread in the economy and to avoid negative

First, the website may lose a large number of customers after they know that there is price discrimination while shopping online. They may feel that they have been cheated since before. Furthermore, the consumers may feel unsecure to continue to shop online after the secret of price discrimination exploded. They will know the online retailers use their private information to scope for price discrimination. Nowadays, more customers know how to prevent them from being analysed by deleting cookies that is used by firm or use tools to price-watch such as CamelCamelCamel.com. They easily can search in Internet on how to avoid from being discriminated. (Kara Brandeisky,

As a large online retailer, the firm should not worry to charge a higher price to its certain customers. Otherwise, the customers should be happy as by just clicking a mouse or touching a screen, they have been able to shop and pay for their purchases without leaving the comfort of home. The firm could charge a low price to attract new customers, while extracting a higher price from loyal customers. As price discrimination increases, and price evaluation becomes easier, discriminated customers may choose to shop online elsewhere. But, price - changing online is not popular among shoppers. Some of them said it would bother them to find out that other people paid a lower price for the same