Profit Maximization vs User Loyalty

Profit Maximization vs. User Loyalty

The most important business goal for a website is to maximize user loyalty and the life-time value of the user’s future visits and purchases. It is less important to maximize the value of the current visit , and indeed it is often counter-productive to do so.

Differential pricing is sometimes seen as a way to increase profit on the Web. For sure, it is easy to modify prices on a computer and to offer different prices to every individual customer based on his or her purchasing history and other tracking information. Much easier than doing so in the real world where most stores have a physical sign with a fixed price....






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