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You have been working for a major online retailer in the entertainment products category and have responsibility for DVD movie sales. You’ve been approached by a company that offers a behavioral targeting software program. When a customer visits your website, this program can tell whether that customer has been “shopping around”—it knows if the customer has looked at DVD movies at other online stores. Assuming these customers are looking for a good deal, the new software allows you to charge a lower price only to these “shopping around” customers. Higher, regular prices would be shown to all other customers. The seller claims the software wills double your profits in the DVD category. Would you purchase this service? Explain your decision

Operation Management, Management Studies

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