"Vox Humana" > wrote in message
...
> Ohio grocer "segments" shoppers with personalized prices
> Shopper card data being put to discriminatory uses, just as we predicted
> Dorothy Lane Market, an upscale grocery chain in Ohio, has implemented
> Customer Specific Pricing (CSP), a practice where different prices are
> charged to each group of customers. Now the majority of all discounts
> available in the store only go to the identified top 30% of Dorothy Lane
> shoppers.
>
> After starting their card program, Dorothy Lane eliminated newspaper
> advertising and switched to an "in-store ad-sheet". Once they were able
to
> analyze their program data to determine who their most profitable
customers
> were they started mailing them exclusive offers while at the same time
> reducing the size of the discounts on their ad-sheet making them only
> marginally better than the regular prices.

<snipped>

This goes counter to common sense. Aren't low prices primarily a way to
attract new customers? And if someone is already a loyal customer why would
the store give up profit on them? They already shop at the store regularly.


--
Peter Aitken

Remove the crap from my email address before using.