Imagine standing in a check-out line when you notice the person in front of you is buying the same item as you, but paying $5 more. Amazed, you ask the cashier why you were charged less. The cashier utters two words: “personalized pricing.” Personalized pricing is the practice of stores using customer data, including buying patterns, income, email sign ups, and even how far away from the store the consumer lives, to determine the consumer’s “pain point.” This is the maximum price an individual is willing to pay for a given product.
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