Watch out for those cookie crumbs. They might be costing money.
Cookies aren’t just treats tasty with milk. They are little bits of text served to computers by Web sites that leave a sort of footprint, a crumb trail, that can tell retailers a consumer’s IP [Internet Protocol] address, ZIP code and browsing and shopping habits.
And many use them to offer dynamic or flexible pricing, which means consumers might be paying more for those books, that cool jacket or a concert ticket than the same item sold to a neighbor on a different computer.
Most customers are accustomed to finding different prices in the bricks-and-mortar world, based on where a store is and how popular an item is. Sometimes, prices are different for the same product in a rural or urban setting or in a rich or poor ZIP code. Sometimes seniors and kids pay less for movie tickets.
But many consumers don’t realize tailored pricing has hit a new level in cyberspace. Retailers are finding stealthier ways — through cookies that track ZIP codes, shopping habits and even how long we take to buy — to profile who can pay more, or less, for their products.
“We know there’s price variability,” said Joseph C. Nunes, associate professor of marketing at the University of Southern California’s Marshall School of Business. “But I don’t think the average consumer has any clue to the extent to which they are subject to price discrimination.”
ShopSmart Magazine, a publication of Consumer Reports, has tracked the practice since 2006. “Most consumers are totally unaware of the practice,” said deputy editor Sue Perry. “The changes can be as little as $2, $3 and $4, but it all adds up.”
Spotlight tried it, too, and found changes based on when we ordered. A basketful of books placed in the Barnes & Noble Web…