Comment on Sony is testing dynamic pricing: one game - different prices on the PlayStation Store
Philharmonic3@lemmy.world 1 day ago
I’m not sure I follow the dynamic pricing explanation. This article shows evidence of A/B price testing with different sized discounts, but not specifically dynamic pricing. It seems to be regional at most. If I’m missing anything let me know.
MrFinnbean@lemmy.world 1 day ago
Exactly what i was thinking. A/B testin is the best way to get data.
What worries me more is what they are going to do with that data and if it will lead to predatory business model or not.
fishy@lemmy.today 9 hours ago
It absolutely will be used in the most shitty predatory way. They’re not going to simply delete the data and most digital marketplaces are excited at the prospect of dynamic pricing.
MrFinnbean@lemmy.world 8 hours ago
Yes, predatory use is what i fear.
What i can gather from the article at the moment they are testing what is the percentage they can discount the game and make most profit still from it. I dont inherently see any proof they are aiming for full dynamic pricing.
If they give for group A, 50% discount and make 1000 sales from 70€ game they make 35 000€.
But if they give group B, 25% discount from 70€ game they make the same 35 000€ with only 667 sales.
Then they have group C as a control. If the control group will make as much money as the other groups they know for sure discounts are not good busines.
Simple so far.
After the initial numbers they most likely will follow the retention. If i were there i would follow each group weekly and take a note how much money each group generates. At this time it would be best that each group gets the same discounts and adds etc. My hypotesis would be that people who buy only games from big discounts are more unlikely to buy games at full price. Meaning that even if there were more sales there would be less income and the customers have lower CLV. It does not mean they are bad customers per se, but it would mean they are not the core customer group they should focus their effort on.
If they are doing what they are doing to figure out their audience really is, this is not predatory. A/B testing is unfortunaly the best way test it, and to company as big as Sony, the data they collect is unmeasurable in value. Everyone of us had been part if some companys A/B test at some point. Adds, news site headers, youtube videos, hell even telemarketing calls do this all the time.
Im not saying they are not looking into to dynamic pricing, but with what information the article gave me i cant say that they are.
Sorry for the long text. I wanted just to justify why i dont see this for a reason to immediadly jump in to conclusion that Sony is trying to screw everybody up.