Some Chinese tech companies are utilizing big data and deploy price discrimination to charge differently on different users. That is mainly demonstrated in three aspects: different prices for iOS and Android smartphone users, different prices for registered users and unregistered users, and different prices for more active users and less active ones.
Empowered by internet technology and the emerging big data, those data-rich apps can obtain users’ information, such as usage time, duration, scenarios, and how much they can afford and are willing to pay. And then they would manage to charge more from some users based on their information on these users. On the other hand, they attract new users by reducing prices since they have no data on them.
Take the online video app iQiyi’s golden VIP membership as an example. In the case that users choose not to automatically renew the services, the monthly, quarterly, and annual prices for that Golden VIP Membership are 25 yuan, 68 yuan,...
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