Retailers Vary Product Pricing for Consumers

Why it matters locally: The practice of varied product pricing, while a national trend, could subtly affect consumers in South Dakota as businesses operating within the state may also employ these strategies for local purchases, impacting household budgets.

Across various sectors including retail, travel, and food, companies implement differing price structures for consumers purchasing the same products and services. Lindsay Owens, author of a new book on pricing practices, states that companies utilize what she terms "price experiments." These experiments involve randomly altering prices for different customers. Additionally, some companies employ "surveillance or personalized pricing." This method involves setting prices based on individual customer data. Owens indicates that companies implement these strategies to increase their profits, according to a report by NBC's Vicky Nguyen.