Featured Post from University of Florida

Why shoppers are paying more for a fake Amazon discount

May 9, 2023

2 min

By Halle Burton


According to new research by Jinhong Xie, a Warrington College of Business professor at the University of Florida, more than a quarter of Amazon vacuum cleaners sold have increased their prices while pretending to offer discounts.


Xie’s pricing phenomenon research is joined with Sungsik Park at the University of South Carolina and Man Xie at Arizona State University, publishing their analysis in the Marketing Science journal.


A product’s price increase is paired with a previously unadvertised listing price, which encourages Amazon shoppers to receive a deceitful false discount.


This faux discount drove higher sales despite the price increase, and shoppers end up paying 23% more on average.


“When you see this list-price comparison, you naturally assume you are getting a discount. It’s not just that you didn’t get a discount. You actually paid a higher price than before the seller displayed the discount claim,” said Xie.


Regulations currently prohibit deceptive pricing by requiring truthful price comparisons from the sellers, but a list price can still be misleading under these circumstances.


Shoppers are misled by the timing of price comparisons where retailers advertise a price discount that actually only gives the impression of a deal.


“Current regulations are all about the value of the list price, and they don’t say anything about misleading consumers by manipulating the timing of the list price’s introduction,” Xie said.


Xie and her colleagues followed more than 1,700 vacuums on Amazon from 2016 to 2017 gathering observational data on their prices.


“We found that by increasing the price by 23% on average, the seller achieves a 15% advantage in their sales rank among all products in the home and kitchen category,” Xie said.


Xie encourages consumers to be aware, not make assumptions about discount claims and utilize multiple websites to compare prices.


“We think that consumer organizations and regulators should evaluate this new marketing practice to determine whether and how to manage it.”

You might also like...

Check out some other posts from University of Florida

1 min

Opinion: Hey Florida! Want to go to Mars? Here’s what it will do to your body

The president is eager “to plant the stars and stripes on the planet Mars.” Would you sign up for that mission? What would happen to your body in the three years you would be gone? As the United States continues to prioritize space travel, you might wonder why anyone would want to travel to Mars and whether it’s even ethical to expose humans to such extreme physiological conditions. The world is watching as the astronauts on the Boeing Starliner remain stuck in space until at least March due to a capsule malfunction. So many questions have arisen about the impacts of people spending extended periods of time in space, and we don’t have all the answers yet. However, because I study how spaceflight affects human physiology and performance, I have some ideas. The first 10 minutes of your journey will be exciting, but it’s the next months and years we really need to worry about. We have solved some of the problems but not all. After you lift off, the high g-forces will paste your body against the crew couch as you accelerate, but there’s really not too much to fear. A typical launch results in only about half the acceleration experienced by a fighter pilot in a tight turn. You might feel lightheaded, but astronauts have dealt with this for generations. Read the full article in the Tampa Bay Times here:

3 min

As holiday shopping season nears, UF experts warn retail theft is growing more sophisticated

With the busiest shopping season of the year approaching, new findings from the National Retail Federation’s Impact of Retail Theft and Violence 2025 report — developed by the University of Florida’s SaferPlaces Lab and the Loss Prevention Research Council — show retailers are facing increasingly complex and technology-driven threats. UF researchers say early preparation, better data and stronger collaboration will be essential as stores brace for heavier foot traffic and heightened safety risks. Despite public reports that retail theft is decreasing, Read Hayes, Ph.D., a UF research scientist and director of the LPRC at UF Innovate, said retailer surveys tell a different story: Incidents of shoplifting, organized retail crime, online fraud and other external theft continue to rise, even as some law enforcement statistics appear flat or declining. The gap, he said, reflects how much crime goes unreported or unrecorded. “Retailers have always had a difficult time reporting much of their crime, and if you look only at police data, like calls for service or arrests, it can look like retail crime is flat or even slightly down,” he said. “But when we survey retailers, who are the actual crime victims, they consistently report year-over-year increases in theft and violence.” Criminal groups are also becoming more sophisticated. Hayes said offenders are increasingly using technology to defeat protective systems, disrupt cameras and identify vulnerable stores. They also rely heavily on social media platforms such as TikTok and Reddit to coordinate attacks and share tactics. “It’s a little disconcerting how much criminals rely on social media now to scout stores, map out easy targets, learn from each other or just plain brag about how they did it,” he said. LPRC scientists monitor social media signals to help retailers and law enforcement understand emerging threats — not in real time, Hayes said, but to help build best practices organizations can use to defend themselves. Criminals continue to focus on high-demand items such as branded apparel and footwear, prompting retailers to rethink how those products are displayed and secured. Hayes said many companies are testing new approaches to better protect vulnerable merchandise without driving customers away. One example is automated self-service systems for locked items, where customers can retrieve a product by having a code sent to their phone without waiting for a store employee. Safety remains retailers’ top concern, Hayes said. LPRC’s latest report, developed in collaboration with the security technology company Verkada, found that frontline retail workers report feeling less safe than ever, a trend that typically intensifies during the holiday rush. Rising incidents of in-store violence, limited law enforcement support in some areas and increased guest-related confrontations are pushing retailers to reassess how they protect both employees and customers. “Nothing is more important than protecting the frontline retail associates who keep this industry running,” Hayes said. “This report helps reinforce what retailers need to do to ensure those workers feel safe.” LPRC teams are also studying ways to improve safety beyond store walls, testing parking lot technologies, including license plate readers and flashing deterrent systems designed to discourage potential offenders and reassure law-abiding shoppers. At the federal level, Hayes said he and partners across the country are urging Congress to pass a bill to address organized retail crime and establish a centralized platform for reporting retail theft threats. As the holiday season approaches, Hayes said the need for evidence-based solutions has never been clearer. “Retailers are under pressure to keep their stores safe, welcoming and competitive,” Hayes said. “The more we can understand offender behavior, customer expectations and emerging technologies, the better we can help retailers, communities and law enforcement reduce harm.” The LPRC, headquartered at UF Innovate, brings together more than 200 major retailers, technology companies and public safety agencies to conduct research that strengthens store safety, reduces loss and enhances the customer experience.

1 min

AI Can’t Replace Therapists – But It Can Help Them

For a young adult who is lonely or just needs someone to talk to, an artificial intelligence chatbot can feel like a nonjudgmental best friend, offering encouragement before an interview or consolation after a breakup. AI’s advice seems sincere, thoughtful and even empathic – in short, very human. But when a vulnerable person alludes to thoughts of suicide, AI is not the answer. Not by itself, at least. Recent stories have documented the heartbreak of people dying by suicide after seeking help from chatbots rather than fellow humans. In this way, the ethos of the digital world – sometimes characterized as “move fast and break things” – clashes with the health practitioners’ oath to “first, do no harm.” When humans are being harmed, things must change. As a researcher and licensed therapist with a background in computer science, I am interested in the intersection between technology and mental health, and I understand the technological foundations of AI. When I directed a counseling clinic, I sat with people in their most vulnerable moments. These experiences prompt me to consider the rise of therapy chatbots through both a technical and clinical lens. AI, no matter how advanced, lacks the morality, responsibility and duty of care that humans carry. When someone has suicidal thoughts, they need human professionals to help. With years of training before we are licensed, we have specific ethical protocols to follow when a person reveals thoughts of suicide. Read the full article from US News & World Report here

View all posts
Powered by