To think personalised pricing is unethical?

[Issummeroveralready]

I already thought that using a club card to get reduced prices on food items was a little close to the mark, but tonight on TV I saw advertised that a certain supermarket is now offering personalised prices on food items when a loyalty card is used (nectar card). AIBU to think this is neoliberalism gone mad. Surely food costs what it costs. Fancy Mary getting lurpack for 5 quid and John getting it for 2 because of some known algorithm. Bonkers.

The vouchers I get sent seem personalised to my shopping habits. I guess this is an extension of the same concept.

*unknown algorithm.

The vouchers I get sent seem personalised to my shopping habits. I guess this is an extension of the same concept.

True. But this sits more uncomfortably with me. I don't know why.

Clubcard vouchers have always been tailored; the whole point of the existence of loyalty cards is so they can track all of your purchasing data, and sweeten the deal by giving you money off of stuff you actually want - plus some random temptations obviously so you widen your range of items.

I'm not clear what the difference is now that you're talking about?

Agree. I hate the Tesco's scheme. It's should be a blanket price. End off.

I get it OP. It gets more dystopian by the minute. Is it the episode of black mirror where people rate people? Like Uber drivers rate you. It all seems wrong and so unfair.

The Nectar prices change each week. They're no different to a voucher.

It's not bonkers, it's marketing.
Club cards are loyalty cards. It's an incentive for you to shop at that particular store and it works.
Supermarkets do not make much per item (about 3% on average) so they rely on volume. And those club cards let them track buying patterns which is invaluable data.
The major supermarkets have reduced their ranges on many items and analysing buying patterns lets them know what is acceptable to consumers.
Reducing prices in return for loyalty and data capture is worth it to them.

Clubcard vouchers have always been tailored; the whole point of the existence of loyalty cards is so they can track all of your purchasing data, and sweeten the deal by giving you money off of stuff you actually want - plus some random temptations obviously so you widen your range of items

Exactly. We're basically getting money off in exchange for them selling all our shopping habit data. I don't like the idea. I know it's not new but this idea of personalised prices based on how much of a good consumer you are. As a pp says. Very black mirror.

Yep as pp said, you are effectively selling them your data which they can use to tailor advertising and offers to you and know how better to market to customers

You are being rewarded or 'paid' by way of a discount on food.

As per PP, you are essentially getting paid for your data.

Win win if you ask me. If you don't like it you don't have to use it.

I don't have a local Tesco, hence no clubcard. Had no idea they did this until I was on holiday and went in one. Tbh it massively rubbed me up the wrong way to have a printed higher price for "people like me". Won't chose to shop there again.

It's not exactly hard to get a clubcard?! They've been around forever!

I had one from when I used to work there 20 years ago!

Ridiculous thread. Loyalty cards have always been a thing! Even Lidl have one!

Similarly sign up to a new online supermarket and you'll save 10/15/20% on your first shop!

I don't use loyalty cards that record purchase habits (I of course use the basic type you get stamped each time you buy something) because I'm a privacy nutter, so yes I agree with you this is dystopian.

Same as ShortJanet
I was on way back from somewhere (didn't have my full wallet on me with all my different cards in) and stopped at a Tesco for a drink and some sweets.
Saw they were priced up at £X for clubcard holders or £X + 15% for those without a clubcard, so I left, and bought the stuff from the next shop.

I agree with you OP.
Yes, I know they collect data from me in return for points, but I don't expect to be charged more for something if I don't have a card with me.

I’ve worked in privacy for decades. My first boss had a saying, “If you’re not paying for a product, then you are the product”. The money off vouchers, offers etc that are provided with loyalty cards are paid for with your personal data, which is at the very least used to try to affect your spending. Depending on the company, it may also be flogged to third parties to try to monetise you. As PPs have said, very dystopian, very Black Mirror.

Are the people defending personalised pricing happy when they get higher plane ticket pricing cos of cookies stored in their browsers? This happens when they have repeatedly searched for a ticket thus informing the airline of their level of desperation. Pers. P. is nice when you get discounts, but not so much when price increases?

You don't want to give them your data?

Fine, don't use a club card

It's like coupons though isn't it?

I shared my club card with the people in front of me in the queue the other day (they asked). Bet that’s confused the algorithm a bit.

i hadn’t been in a Tesco for a few years and couldn’t believe the two tier pricing system! I obviously know about clubcard, vouchers and points etc but it seemed really off and somehow wrong; essentially it’s financial blackmail to sign up (which I did on my phone in the shop then showed the signup email at checkout to get the massively cheaper clubcard wine prices!) Doesn’t sit right though and haven’t been back since!

I don’t get what the problem is?
Its a trade off- you give them your data and spending habits which is valuable data to them. They give you a discount.
Dont want to give your data then don’t. But you can’t expect a discount too?

I work in tech so well aware of clubcard and big data, hence not previously signing up. Previously though, this data was paid for in money off or offers after pints bring collected, not a two tier system at PoS.

Points* <possibly from buying pints>

Depending on the company, it may also be flogged to third parties to try to monetise you. As PPs have said, very dystopian, very Black Mirror

Yes this third party thing is a big part of my concern too. 50p off a cucumber and suddenly a completely unrelated company knows my shopping habits.

But this new sainsburys scheme seems a whole new level with them giving mystery individual prices in real time in store.