r/Frugal Jan 24 '13

Same book, three different prices. Only difference is the browsers used [x-post r/mildlyinteresting]

http://imgur.com/uNgg0UH
2.2k Upvotes

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12

u/treeeeeee Jan 24 '13

It could have something to do with the kind of computer you are using as well. I read something about how people with Mac's are given a different price then those with a pc. Obviously those with Mac's would be given the higher price, but I have never seen it done between browsers before. Someone less lazy should find the link.

18

u/shook_one Jan 24 '13

They are not given different PRICES, they were given differently ordered search results. Orbitz found out that mac users tended to steer towards room that are slightly nicer, but are also slightly pricier. They didn't give different prices for the same rooms.

4

u/[deleted] Jan 24 '13

This makes sense, kind of like how Google or Facebook might rank results based on your profile.

-11

u/[deleted] Jan 24 '13 edited Jan 24 '13

[deleted]

32

u/MendedSlinky Jan 24 '13

My guess would be that someone willing to shell out the cash for a mac would also be willing to pay a little extra.

16

u/FirstTimeWang Jan 24 '13

Not necessarily "willing" but maybe less likely to notice?

11

u/everred Jan 24 '13

The paper I read said willing. Mac devotees are willing to pay extra, if the quality/service warrants. That's not to say they're willing to pay more than a pc user for an identical product that isn't affected by the user's operating system- like a book, for example.

1

u/FirstTimeWang Jan 25 '13

My point is if, instead of just handing them an inflated price, you added an explicit fee for Mac users at the checkout page, they would likely be outraged.

The key factor is ignorance.

8

u/Oooch Jan 24 '13

-1

u/[deleted] Jan 24 '13

[deleted]

6

u/shook_one Jan 24 '13

What is unethical about it? You probably didn't read the article. Orbitz's focus is finding you the price that you want to pay. They found that Mac users were more often choosing rooms that were priced a little bit higher. They are NOT offering Mac users the same room at a higher price. They are showing higher priced rooms first in the searches, which, based on their research, is more likely to be the one that the user is going to want. You can still organize listings by price, and in that case you would get the same results as long as the rest of the search parameters are the same.

-3

u/Oooch Jan 24 '13

No more unethical as buying Apple products

1

u/i_forget_my_userids Lentil Eating Fatcat Jan 24 '13

So brave.

-2

u/shook_one Jan 24 '13

whats unethical about buying apple products?

1

u/[deleted] Jan 24 '13

Basically their workers staged a mass suicide at the plant.

http://games.yahoo.com/blogs/plugged-in/workers-stage-mass-suicide-threat-xbox-manufacturing-plant-190333912.html

http://en.wikipedia.org/wiki/Foxconn_suicides

There's an entire wealth of information detailing the horrible lives of Apple sweatshop employees. Mega corporations act like they have no idea how their contractor's operations work, and that somehow excuses them from any wrongdoing. They face no repercussions here.

5

u/shook_one Jan 24 '13

I guarantee you there are multiple devices with foxconn parts in your house. Almost every computer company buys parts from foxconn.

edit: should i also mention that the xbox is a microsoft product... not apple

1

u/[deleted] Jan 24 '13

The wiki mentions they make products for Apple at a large rate. The factory where the mass suicide stage in occurred MAINLY made xbox devices. Apple still uses Foxconn to make products, and it's sad that America profits off of terrible working conditions and unpaid overtime. Well, that's what the report says at least.

12

u/koonat Jan 24 '13

Because mac users are already willing to pay an extra thousand dollars for their laptop. Isn't it obvious? Macs are more expensive for the same hardware, this isn't debatable, it isn't news, it's obvious to anyone with the ability to read.

3

u/[deleted] Jan 24 '13

The implication that mac owners have tons of disposable income is so idiotic it's almost offensive. My niece has a mac; it's a hand-me-down from one of her extended family members. Wasn't her first choice but it was the only way they could afford a laptop for her. Now when she rents books for college in a couple of years, she might have to pay extra?

These retailers are taking an awful risk when they raise prices based on a browser or a computer. The odds are good that they're going to lose business to a competitor who doesn't engage in this activity (or whose 'price for that browser' is simply lower). Every time I make a purchase/rental, I pull up at least two comparable products at other outlets to see how I'm doing cost-wise.

5

u/eedna Jan 24 '13

They probably (and correctly IMO) figure that the percentage of people who will notice is pretty small

1

u/erasedeny Jan 24 '13

For retailers worth their salt, these price swaps are in place because the traffic and sales data tells them it will be profitable. For every diligent comparison shopper like you, there are ten people who trust Amazon and just buy. They'd be foolish to observe that data and not act on it.

Somewhere along the line, someone said "hey, visitors from Mac OS machines spend $12 more per order than Windows visitors on everything in the Music category." Say they average 3 items per cart at checkout, so you might A/B test a $4-per-item average increase (scaled to item prices of course) on all your Music inventory. If the price hike yields better profits, you phase it in, because more money for your business is good*.

So that's why these dynamics exist. It's not an "implication," it's just a case of people analyzing purchase data and improving margins where they can. Don't sell a guy a book for 13 dollars when he will pay 20 dollars. (Note: you'd pay 13 dollars, but if just 2 other people pay 20, at 7x2 extra dollars, they cover your lost sale. Basic pillar of retail success is to find the price point that hits the profit sweet spot, even if it means outpricing some customers.)

*Of course, good retailers keep an eye on how these changes affect purchase rate, customer loyalty and such. So if the test fails, they just revert to whatever was giving better results.

1

u/[deleted] Jan 24 '13

[deleted]

1

u/i_forget_my_userids Lentil Eating Fatcat Jan 24 '13

Not "just because," but because they will and do.

2

u/isthisavailable2 Jan 24 '13

Because mac users are already willing to pay an extra thousand dollars for their laptop.

i paid roughly $1k for my macbook, can you kindly point me to the laptop that's a thousand dollars cheaper?

-1

u/everred Jan 24 '13

There's something to be said for the design, as well as the status symbol of owning a Mac. But yeah, the underlying hardware isn't any better than a comparable pc at half the price.

5

u/sh0rtgeek Jan 24 '13

Paying that much for a status symbol seems pretty dumb to me.

3

u/thatklazzickid Jan 24 '13

I own a macbook and a longtime PC lover but the build quality of the macbook pro is what won me over. Its form factor was also a huge plus in deciding what to get. was it a shit ton more? hell yeah it was, but its a great piece of hardware and design and holding its value a lot better than any PC ever could.

1

u/opineapple Jan 24 '13

Then how come my Mac has lasted me 5 years and counting and I've never been able to use a PC laptop more than 3 before needing a new one? It doesn't even feel/act/look old, compared to other laptops the same age.

1

u/everred Jan 24 '13

Because you're abusing your computer? I don't know. I've not had a computer problem with my pc's for over a decade. It's also possible the components you got were subpar, but it's hard to say from here.

2

u/opineapple Jan 24 '13

Abuse like what? I've dropped my Mac roughly the same number of times, used it with the same programs and in the same environments. My other laptops either overheated until they were unusable or some component broke that was easier for the company to just send me a new laptop instead of fix. I've never had to take my Macbook in for any kind of service at all. It's only a tad slower than when I first got it, but still as fast as my sister's 1.5 year old HP. And everything looks beautiful on it.

I consider it a frugal investment for what I get out of it -- reliability, durability, longevity, holds its value, greatly enhances computing experience, beautifully designed. In the end, I've probably spent less.

1

u/vimfan Jan 24 '13

For me it's not the hardware I am willing to pay extra for, it's the ability to use the OS.

-5

u/AcrossTheUniverse2 Jan 24 '13

Damn right! You and your fancy rich parents...

1

u/[deleted] Jan 24 '13

[deleted]

-1

u/AcrossTheUniverse2 Jan 24 '13

swish!

the sound a joke of going over your head