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Time for Customer-Level Pricing: New Tools Offer More Ways to Segment

Imagine you are sitting on an airplane in a middle seat you booked at the last minute, and somehow the topic of price comes up with your row mates. You discover that your window and aisle neighbors each paid $200 for the flight, but you paid $1,000 for your seat. While frustrating, travelers tend to accept that they will have to pay more money for the same product when seats are scarce. Banks are starting to use the same kind of tools to make more detailed distinctions among their retail customers. Instead of seats, however, more banks should tap the ...

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