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NEW YORK, NY, April 30, 2014 /24-7PressRelease/ -- Late in 2012, the Wall Street Journal discovered that stationery and electronics supplier Staples.com was displaying different prices to customers based at different locations. The main difference appeared to be the proximity of a customer's location to a rival brick-and-mortar store: if a customer was perceived to be within 20 miles of a competitor's store, the Staples website usually showed a discounted price. The investigation found that customers living within the vicinity of a competitor were being offered a particular brand of stapler for $14.29, while those living a few miles down the road saw the same stapler priced on the website as $15.79. A common criticism of this type of price-targeting is that the areas with less competition tend to be rural and lower-income districts, meaning that in general lower-income areas were charged higher prices than high-income areas. The Wall Street Journal's investigation revealed that the average income amongst ZIP codes that received Staples' discounts was $59,900; the average income of ZIP codes that were charged the higher prices was $48,700.
Marketing on 6th NYC reports that this form of 'price discrimination' is very unpopular with American consumers: in a survey by the University of Pennsylvania, 76% of consumers said they would be concerned to find out that they paid more than other people for the same product. A 2013 Consumer Action survey demonstrates that US consumers broadly distrust marketers' motives for online tracking. 55% strongly disagreed that there was 'no harm' in being tracked online. 52% strongly disagreed and a further 20% somewhat disagreed that marketers consider users' privacy when tracking them online. 56% strongly disagreed that companies make it clear how they track information, and for what purpose. Marketing on 6th NYC suggests that a lack of transparency and communication from companies may be the reason for consumer mistrust of online tracking.
About Marketing on 6th NYC:
Marketing on 6th NYC is an outsourced company that runs event marketing campaigns on behalf of clients. The firm offers personalized campaigns by talking with customers face to face and explaining the products in detail, allowing the customer to make an informed decision and build a personal connection with the brand. "We are aware of the benefits of using personalized campaigns that are tailored to the customer, so we are not condemning targeted marketing. However the above studies show that consumers have genuine concerns about how their data is used online, and these need to be addressed. We believe that targeted marketing is effective, but should be closely regulated to ensure that customers are being fairly treated," says Colm Horgan, managing director of Marketing on 6th NYC.
Marketing on 6th NYC is a specialized events marketing firm based in New York City, working alongside clients in the non-profit, entertainment and telecoms industries.
Marketing on 6th is an ambitious Direct Sales force that links Fortune 500 companies to their future consumers. They develop effective ways to promote their clients products and services. Marketing on 6th NYC is a specialized events marketing firm based in New York City, working alongside clients in the non-profit, entertainment and telecoms industries.
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