Price increases after multiple views? Consumer association experience investigation on big data "kill the rich"
Have you ever experienced differentiated big data marketing?
To promote the rational application of big data and protect the legitimate rights and interests of consumers, the Beijing Consumers Association, the Tianjin Consumers Association, and the Hebei Consumers Protection Committee jointly conducted a survey on the phenomenon of differential treatment in big data marketing.
The survey results indicate that the majority of respondents believe that big data technology has both advantages and disadvantages in enhancing consumer experience. The respondents' views on big data technology demonstrate a double-edged sword effect, among which:
- .% of the respondents believe that the benefits of big data applications outweigh the drawbacks.
- A percentage of respondents believe that the drawbacks outweigh the benefits.
- A percentage of respondents believe that the pros and cons are equally balanced.
The survey found that big data has significantly enhanced consumers' search and shopping experiences, but has also brought about issues such as privacy leakage and differential marketing. The concerns of respondents regarding privacy leakage and being subjected to differential marketing both exceeded %.
The survey suggests that differentiated marketing through big data is a common phenomenon. Over 40% of consumers explicitly stated that they have encountered "big data differentiated marketing"; only a small percentage of consumers believe they have not experienced it; half of the consumers are unsure whether they have encountered differentiated marketing; and the proportion of such behaviors decreases with age.
The survey indicates that respondents most frequently experience differentiated marketing practices driven by big data in categories such as shopping, food delivery, and ride-hailing.
The survey found that among the specific scenarios encountered by respondents in differentiated marketing through big data, the most common manifestations were:
- The price rises automatically after multiple browsing
- Different users enjoy different discounts
- Hide or not send coupons to old users
- Different users purchase the same product or service at the same time at different prices
Differentiated marketing attribution is complex. Surveys reveal that respondents find it difficult to distinguish between corporate differentiated marketing and big data differentiated marketing. The "differentiated marketing" mentioned by respondents refers to the perceived phenomenon of unfair pricing, where long-term customers or "regulars" are charged higher prices without apparent reason, while new customers or "first-timers" may enjoy more discounts. This phenomenon is seen as unfair by consumers.
The experience survey results indicate that there is a certain degree of price difference among the products or services on each platform, primarily due to the various types of coupons. These coupons come in many forms, including inflated discounts, exclusive offers, and discounts for new and old users, each with its unique characteristics and unclear origins. Although the platforms make consumers feel that they have numerous choices and discounts, in reality, their choices may have been limited by the platform's algorithms. For example:
- The purchase experience of sugar-roasted chestnuts and mochi priced at yuan on takeaway platforms resulted in a settlement price fluctuation from yuan to yuan, with a price difference exceeding % of the original selling price.
- Combining short video/live streaming platforms for consumers' firsthand experience, an investigation was conducted on the Supor electric kettle, stainless steel, 1.7L, fully automatic, safe, extra-large capacity water boiler. The settlement prices showed fluctuations ranging from ¥139 to ¥169, with a price difference close to 21% of the original price.
- Conducting an investigation on online homestay platforms, a price discrepancy of % is observed in the settlement prices.
Experience surveys have found that new users often enjoy lower settlement prices across multiple platforms. This is primarily due to the exclusive coupons, gift funds, and other benefits provided by the platforms for new users. On certain platforms, user levels and membership benefits also influence settlement prices, with higher-level users or members enjoying more discounts and privileges. Additionally, payment methods can affect settlement prices, as platforms may encourage the use of specific payment methods to facilitate transactions.
Consumers Association suggests: Strengthen supervision to promote standardization. Big data application enterprises should enhance internal management and system construction, operate with integrity and in compliance with laws, strengthen self-supervision, and actively safeguard the legitimate rights and interests of consumers. Establish and improve the norms and mechanisms for the use of big data, clarify the legality and transparency of data collection, processing, and usage, and when collecting and using consumers' personal information, adhere to the principles of legality, appropriateness, and necessity, strictly ensuring that the purpose, methods, and scope of information collection and usage are clearly stated and obtaining consumers' consent. Establish an internal regulatory mechanism, conduct regular internal reviews and self-checks, and avoid abusing big data for price discrimination.
Relevant departments should strengthen the construction of laws, regulations, and regulatory systems to promote the standardized and healthy development of the industry. Clearly define the concepts and criteria for big data differential marketing, regulate the practices of enterprises in collecting and using personal information, and enhance the protection of consumers' personal information. Increase the penalties for big data differential marketing practices, raise the cost of violations and reputational losses. Establish a dedicated regulatory body to ensure a swift response to consumer complaints.
Relevant departments should encourage technological innovation, promote information disclosure, and establish a fair market competition environment. Develop smarter and more equitable pricing algorithms; advance the disclosure of information on big data application technologies to enhance the transparency of big data applications; strengthen anti-monopoly investigations into big data enterprises.
Consumers should strengthen their awareness of self-protection and handle consumer infringement issues rationally and in accordance with the law when they encounter them. Consumers should develop the habit of carefully reading user registration agreements and privacy protection clauses, and strive to minimize the traces of personal information left on the internet; enhance their understanding of big data applications, and actively safeguard their legitimate rights and interests when encountering differential marketing based on big data.