(Last Word): Alex owns a luxury automobile and regularly purchases high-end fashion items online. Kara drives an old sedan and does most online shopping on eBay and Amazon. Suppose both Alex and Kara search the same online retailer for a nice watch to give on Fatherâ€™s Day. Based on Big Data and personalized pricing, we would expect
A) Alex to see a higher price than Kara for the same watch.
B) Alex and Kara to see the same price for a given watch.
C) Alex to see a lower price than Kara for the same watch.
D) that either Alex or Kara might see a higher price for the same watch, as algorithms randomly determine what price each consumer sees.

Question

Quizplus · Accepted Answer

Alex is likely to see a higher price due to personalized pricing algorithms that consider his purchasing behavior and perceived willingness to pay more based on his luxury spending habits.

(Last Word): Alex Owns a Luxury Automobile and Regularly Purchases