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1 minute read
Migros, the largest supermarket chain in Switzerland, has launched a new campaign where they offer personalized discounts based on willingness-to-pay data from customer reward cards. By using this data, the retailer can avoid granting discounts to customers who would have paid the full price and at the same time encourage price-sensitive buyers to purchase products they normally wouldn’t have.
The initiative is being advertised as “personalized discount” and as such you’re not being penalized for having a high willingness-to-pay; you’re just not receiving the same reward as those more price-sensitive customers. Of course, the bottom line is the same and the retailer is now being accused of engaging in price discrimination.
You can read more about using willingness-to-pay for pricing here.
