Get the feeling youre being nickel-and-dimed? Dynamic pricing means you probably are
If it feels like you’re being nickel-and-dimed in every aspect of your life, it’s not your imagination.Even McDonald’s is turning you upside down and shaking the loose change from your pockets as you buy that once affordable fast-food feast.A new report from Reuters says the burger chain is pushing its franchisees to use AI-powered algorithms to set pricing at their locations.The technology analyzes data across 14,000 locations to estimate “customer willingness to pay in your area.”For example, the report compares burger prices in Fresno, California.
In one location, the McDonald’s mobile app lists a Big Mac at $5.69, while at another location only two miles away, that same burger is $6.89.That’s pretty outrageous and adds up over time.Now, you have to shop for fast food like you would for a car, comparing prices at different dealerships before you pull the trigger on a purchase.
(McDonald’s notes that franchisees have the final say on pricing).It’s obvious that inflation isn’t the lone culprit for the ballooning cost of living.During Covid, we were all sitting on our couches shopping online, giving brands tons of personal information that was perfectly optimized by all the incoming AI technology.Now shoppers are being subject to surveillance pricing, which might not necessarily be part of the everyday vernacular just yet.
But it’s widespread across the consumer experience as companies increasingly study the buying habits of people online and then set the rates based on their personal data.“Surveillance pricing is the intersection of two things Americans hate: being spied on and being overcharged,” Lindsay Owens, author of “Gouged: The End of a Fair Price — and What That Means for Your Wallet,” said of the practice.Shopping from a pricey Apple computer? The brand assumes that you are looser with your wallet.Browsing from a tony location? Surely, you can shell out more scratch for this shirt.
Or, if you’re revisiting a site over ...