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1 minute read
Today, many of the largest retailers in the industry have both an online and an offline presence (i.e. a 'Clicks-and-Bricks' model). Partially, this enables retailers to target a wider audience with different geographic locations and preferences; and partially, the online presence provides the retailer with loads of customer data that can be applied to the offline shopping experience.
In a recent article, Ken Moon of The Wharton School explains some interesting implications of the Clicks-and-Bricks model for pricing. Today, retailers can use credit card information to detect behavioral patterns, which is a cornerstone in the application of online customer data to the offline experience. One example that Moon highlights is retailers identifying the sources of their website visitors, and hereby try to identify the types of customers that spend a lot of time monitoring prices; of course, these customers are generally very price-sensitive, and by using credit card information, Clicks-and-Bricks retailers can identify links between price-monitoring customers and certain product categories, and lower the price accordingly.
You can read the full article here: http://knowledge.wharton.upenn.edu/article/creating-retail-pricing-strategy/
