Case Study 7

Garcia Public Policy Center

A recent study by the Garcia Public Policy Center investigated one major area of business decisions: pricing practices. Specifically, the study addressed consumer knowledge and attitudes about the practice of online retailers adjusting their prices according to customer characteristics, such as how frequently they buy from the retailer. For example, a Web site selling cameras charged different prices for the same model depending on whether the visitor to the site had previously visited sites that supply price comparisons. In general, charging different prices is called price discrimination and is legal unless it discriminates by race or sex or involves antitrust or pricefixing laws (such as two competitors agreeing to charge certain prices). The Garcia study consisted of telephone interviews conducted with a sample of 1,500 adults, screened to find persons who had used the Internet in the preceding 30 days. The questionnaire gathered demographic data and data about Internet usage. In addition, the interviewer read 17 statements about basic laws and practices related to price discrimination and the targeting of consumers according to their shopping behaviors. Respondents were asked whether each of these statements was true or false. Tables from 1 through 4 summarize some of the results from this study.

Questions

1. The information provided here is not detailed enough for a formal report, but assume that you are making an informal report in a preliminary stage of the reporting process. Which of these findings do you want to emphasize as your main points? Why?

2. write a summary of the findings, using at least two tables or charts.

3. Prepare two tables or charts that would be suitable to accompany an oral presentation of these results. Are they different from the visual aids you prepared for question 2? Why or why not?

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