The Wall Street Journal published an article recently concerning the Orbitz travel deals website. This article communicated information that would leave Mac users scratching their heads. The popular travel website used pricing strategies based on whether customers booked travel using a PC or a Mac.
In this particular tactic Mac users received the short end of the stick. Believe it or not Mac users who booked travel on Orbitz were being charged more than PC users. Researchers working for Orbitz determined that Mac users spent more on their travel purchases than PC users.
Since this discovery there have been many discussions surrounding this targeted method of pricing. The truth is people are targeted from every walk of life and socio economic status. Poor neighborhoods are targeted by the strategic placement of liquor stores and convenient stores that have over priced products.
The liquor store placement theory could be used as a way to prove that people are targeted based on a number of factors. Some of these factors include substance abuse statistics. If more poor people in lower income neighborhoods drink more than upper case neighborhoods, one can expect that not only will liquor stores and owners thrive in poor neighborhoods, but the prices of liquor in those targeted areas will cost more.
Convenient stores in poor neighborhoods generally charge more, the reason is because it is likely that poor neighborhoods are full of people who have no or unreliable transportation. Therefore, people living in the neighborhood may not have a ride to the grocery store and result to purchasing food within walking distance.
Those in poor or low income neighborhoods are more likely to receive food support or food stamps. This means that unlike those purchasing food with cash those who are paying with food stamps may lack a concern for the amount of money spent on a gallon of milk.
People who live in upper-class neighborhoods are targeted as well. A salesman or woman selling Kirby vacuum cleaners may charge those in expensive neighborhoods $1500 for a vacuum, while charging a customer in a lower-class neighborhood $900.
The truth is people purchase what they feel comfortable purchasing. Whether this is because of financial status or a lack of funding the world is full of pros and cons. There are those who will benefit from the rich and vulnerable those who will benefit from the poor and vulnerable.
It is unclear if either ways is unavoidable. A car sales person will sell the same car to 10 different people for 10 different prices if the buyers agree with the price. The question is, is there really any difference in the car sales theory versus the strategies used for the sale of travel deals by Orbitz?