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Price discrimination in online airline tickets based on customer profiling?

Schrader, J. (2013) Price discrimination in online airline tickets based on customer profiling?

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Abstract:Customer Profiling is a practice of price discrimination enabled through new technologies, such as cookies, and is referred to as behavioral tracking. In recent years customers seem to perceive that the ticket prices of flights on the Internet are adapted through the profiling of their personal data. A month-long experiment analyzing the ticket prices of four European carriers (two Full Service Carriers and two Low Cost Carriers) on four different routes found no evidence of price discrimination based on customer profiling. Therefore, in this particular case the usage of personal data of consumers for ticket pricing purposes is not confirmed. However, significant price differences during the observation period of one month show that price discrimination in general is used by airlines. Full Service Carriers are found to be the airlines applying more price discrimination than Low Cost Carriers. Nevertheless, in 50% of the cases the price adaptions led to price reductions for the travelers.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration BSc (56834)
Link to this item:http://purl.utwente.nl/essays/63767
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