Personalized Pricing Definitions

Personalized Pricing: Charging different customers different prices or offers for the same product, based on information about them or a group they belong to.
Surveillance Pricing: A policy and legal term for personalized pricing based on personal data collected through tracking technology, such as browsing history, location or inferred income.
Dynamic Pricing: Prices that change with market conditions such as time, demand or inventory, where everyone sees the same price at the same moment.
Algorithmic Pricing: Any pricing in which software calculates or recommends the price. It becomes a legal issue when the algorithm uses personal data or competitors’ data.
Deterministic Pricing: Pricing in which customers are placed in defined, non-overlapping segments by explicit, readable rules, and each segment has a set price or offer. The same data under the same rule version always produces the same price.
Customer Segment: A group of customers who share defined characteristics. In pricing, a segment becomes legally significant when membership changes the price or offer a customer receives.
Inferred Data: Information a business estimates about a customer rather than collects, such as a likelihood to cancel, income band or life event, often derived from combinations of ordinary data.
Personal Data: Information that identifies, or can reasonably be linked to, a specific consumer or device. Each law defines it slightly differently.