Capital One says it gathers data about visitors while they are on its website and uses this information to suggest different products to them. "We do not use any of this data in credit decisioning or underwriting," a Capital One spokeswoman said. "We're making an educated guess about what we think consumers will like."
Tuesday, January 22, 2013
Online Price Discrimination
The Wall Street Journal investigate price differences and discovered price discrimination. For example, Staples said "in-store and online prices do vary by geography due to a variety of factors, including rent, labor, distribution and other costs of doing business." Likewise, Capital One Financial Corp. has used personalization to decide which credit cards to display to website visitors. "Dynamic pricing" adjusts prices continuously in response to information including competitors' offerings and other factors.