Full disclosure. I have worked on many platforms which enables Price discrimination.
I do not believe in price discrimination. I believe its wrong. Price discrimination is wrong.
What is easier :
1. Giving the best prices to your "best" customers.
Or.
2. Giving the best price to a Customer who really needs it at this time.
(1.) is easier. (2.) is better. Both are wrong.
Why?
1. Who are the best customer? Those who spend the most? The most loyal?
- The best customer usually means those that spends the most. They then get the best deals. Overtime, eventually leading to apartheid and discrimination by design and by algorithm.
- Loyalty is lost when shopping around to get the best prices. So again, Loyalty is a luxury.
2. How are needs calculated?
- Aligning business and customer needs is very difficult. You can only predict what customer wants (unless they tell you).
Solution,
Show the best proposition to customer based on their needs at this or a future time - and that's all. No discounts should be applied unless their time has been wasted (.i.e. late deliveries)
