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Analysis Of The Amazon And The UX Of Advanced Targeting

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According to an article written by Theo Miller from Forbes Magazine titled “ The Amazon And The UX Of Advanced Targeting”, the author states that “price discrimination is a crime… and It's a violation of someone's privacy to change a price based on their profile”. Throughout this paper, I will examine this new “advanced Targeting” that is being done by Amazon and other companies alike and prove that price discrimination can be legal, and how vital it is for firms to differentiate between their customers. Through this analysis, the effect of price discrimination on consumers and producers will be apparent, as well as its effect on the demand and supply in the market. The Forbes news article titled “The Amazon and The UX Of Advanced Targeting” was inspired by an incident that occurred with Amazon in September of 2000. Seventeen years ago, the company Amazon, which is a large online shopping website, was caught in a bit of a scandal while it was practicing dynamic pricing. In this case, Amazon used website cookies to gather information about their customers, such as how often they visit and item, if they are a new customer or not. The company used this information, and enforced their dynamic pricing methods by charging their customers prices that are dependent on their past actions. Their practice was brought to life when a customer described his experience with Amazon’s change of prices on a popular website called “DVDTalk.com”. “[The] buyer visited Amazon to purchase a DVD.
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