Microsoft Invents Price-Gouging the Least Influential

theodp writes "In the world envisioned by Microsoft's just-published patent application for Social Marketing, monopolists will maximize revenue by charging prices inversely related to the perceived influence an individual has on others. Microsoft gives an example of a pricing model that charges different people $0, $5, $10, $20, or $25 for the identical item based on the influence the purchaser wields. A presentation describing the revenue optimization scheme earned one of the three inventors applause (MS-Research video), and the so-called 'influence and exploit' strategies were also featured at WWW 2008 (PDF). The invention jibes nicely with Bill Gates's pending patents for identifying influencers. Welcome to the brave new world of analytics."

Comments

New Business Model

[BitterOak]

1. Become influential or join together with a group of influential friends.

2. Buy things very cheap.

3. Sell them at a higher price.

4. Profit

In fact, you could set up a brokerage business where you find people that have cheapest access to things, offer to buy from them at a slightly higher price than they pay, and sell at a higher price to groups that would have to pay even more. Lots of profit opportunities here.

Doesn't the FTC ruling mean that...

[mysidia]

If you receive a more preferable product for a good or service based on your social network status (or on your blog), you have to disclose that, according to the FTC.

You aren't allowed to get a better price based on your influence/following and fail to disclose it.

This type of pricing scheme is dangerous, and might land company executivies in jail, for the attempt to defraud less-influential people with higher pricing.

However, I expect this could backfire... some of the more influential people will certainly say what price they got.

You can't control this type of information. There will be a backlash / disillusionment when other people learn that they are getting a different price.

In fact, the "more influential person" may lose influence, when people discover that.

E.g. Getting the better price can have long-term social costs in how other people in your social network view you.

Good Advise vs. "Sell-out"

Re:The commercialization of friendship

[moonbender]

Fuck 'em. Don't buy their shit. Hell, make it a general principle and don't buy shit in general. Ask yourself "Do I really need this"? Spend more money on food and wine, ideally without a long distribution chain between you and the producer.

An internet connection gives massive influence

[petes_PoV]

One bad review posted to a web forum can have a huge effect. When multiplied by 1000, I would expect the consensus view would be that few people would buy a product - if they saw that many bad reviews or negative votes or a given product. These guys had better be very careful about who they decide is not influential, they could just find that there's a difference between how motivated individuals are to spread good news about a product and the lengths others will go to if they feel they've been hard done by.