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

4 min

Violence alters human genomes for generations, researchers discover

In February of 1982, the Syrian government besieged the city of Hama, killing tens of thousands of its own citizens in sectarian violence. Four decades later, rebels used the memory of the massacre to help inspire the toppling of the Assad family that had overseen the operation. But there is another lasting effect of the attack, hidden deep in the genes of Syrian families. The grandchildren of women who were pregnant during the siege — grandchildren who never experienced such violence themselves — nonetheless bear marks of it in their genomes. Passed down through their mothers, this genetic imprint offers the first human evidence of a phenomenon previously documented only in animal models. The genetic transmission of stress across multiple generations. “The idea that trauma and violence can have repercussions into future generations should help people be more empathetic, help policymakers pay more attention to the problem of violence,” said Connie Mulligan, Ph.D., a professor of Anthropology and the Genetics Institute at the University of Florida and co-senior author of the new study. “It could even help explain some of the seemingly unbreakable intergenerational cycles of abuse and poverty and trauma that we see around the world, including in the U.S.” While our genes are not changed by life experiences, they can be tuned through a system known as epigenetics. In response to stress or other events, our cells can add small chemical flags to genes that may quiet them down or alter their behavior. These changes may help us adapt to stressful environments, although the effects aren’t well understood. It is these tell-tale chemical flags that Mulligan and her team were looking for in the genes of Syrian families. While lab experiments have shown that animals can pass along epigenetic signatures of stress to future generations, proving the same in people has been nearly impossible. “Resilience and perseverance is quite possibly a uniquely human trait.” —Connie Mulligan Mulligan worked with Rana Dajani, Ph.D., a molecular biologist at Hashemite University in Jordan and co-senior author, as well as anthropologist Catherine Panter-Brick, Ph.D., of Yale University, to conduct the unique study. Dajani envisioned the research project; because of her intimate knowledge of the Syrian population and its tragic history, she designed the study to cover three generations of Syrian refugees to Jordan. Some families had lived through the Hama attack before fleeing to Jordan. Other families avoided Hama, but lived through the recent civil war against the Assad regime. The team collected samples from grandmothers and mothers who were pregnant during the two conflicts, as well as from their children. This study design meant there were grandmothers, mothers and children who had each experienced violence at different stages of development. A third group of families had immigrated to Jordan before 1980, avoiding the decades of violence in Syria. These early immigrants served as a crucial control to compare to the families who had experienced the stress of civil war. Study coauthor Dima Hamadmad, a Syrian researcher and the daughter of refugees, led the search for families that met the study criteria and collected cheek swabs from 138 people across 48 families. "The participants took part in the research out of love for their children and concern for future generations,” she said. “But more than that, they wanted their stories of trauma to be heard and acknowledged.” Back in Florida, Mulligan’s lab scanned the DNA for epigenetic modifications and looked for any relationship with the families’ experience of violence. In the grandchildren of Hama survivors, the researchers discovered 14 areas in the genome that had been modified in response to the violence their grandmothers experienced. These 14 modifications demonstrate that stress-induced epigenetic changes may indeed appear in future generations in humans, just as they can in animals. The study also uncovered 21 epigenetic sites in the genomes of people who had directly experienced violence in Syria. In a third finding, the researchers reported that people exposed to violence while in their mothers’ wombs showed evidence of accelerated epigenetic aging, a type of biological aging that may be associated with susceptibility to age-related diseases. Most of these epigenetic changes showed the same pattern after exposure to violence, suggesting a kind of common epigenetic response to stress – one that can not only affect people directly exposed to stress, but also future generations. “We think our work is relevant to many forms of violence, not just refugees. Domestic violence, sexual violence, gun violence: all the different kinds of violence we have in the U.S,” said Mulligan. “We should study the effects of violence. We should take it more seriously.” It’s not clear what, if any, effect these epigenetic changes have in the lives of people carrying them inside their genomes. But some studies have found a link between stress-induced epigenetic changes and diseases like diabetes. One famous study of Dutch survivors of famine during World War II suggested that their offspring carried epigenetic changes that increased their odds of being overweight later in life. While many of these modifications likely have no effect, It’s possible that some have functional effects that can affect our health, Mulligan said. The researchers published their findings, which were supported by the National Science Foundation, Feb. 27 in the journal Scientific Reports. While carefully searching for evidence of the lasting effects of war and trauma stamped into our genomes, Mulligan and her collaborators were also struck by the perseverance of the families they worked with. Their story was much bigger than merely surviving war, Mulligan said. “In the midst of all this violence we can still celebrate their extraordinary resilience. They have persevered,” Mulligan said. “That resilience and perseverance is quite possibly a uniquely human trait.”

3 min

One AI-based advancement at a time, UF leaders are transforming the sports industry

As emerging technologies like AI reshape sport industries and professional demands evolve, it is essential for students to graduate with the expertise to thrive in their future careers. To ensure that these students are set up for success, the UF College of Health & Human Performance has launched a new sports analytics program. Led by Scott Nestler, Ph.D., CAP, PStat, a professor of practice in the Department of Sport Management and a national analytics and data science expert, the program ties back to the UF & Sport Collaborative – a five-part project intended to elevate UF’s presence on the global stage in sports performance, healthcare and communication. “Tools and insights that previously were only available to professional sports teams are now coming to the college level, and it makes sense for universities to begin using these data, technologies and new analytic methods,” Nestler said. The sports analytics program fosters collaboration between academic units, such as the Warrington College of Business and the University Athletic Association, helping bridge the gap between sport research and innovation and empowering students to address real-world challenges through data and AI. For example, the program offers opportunities to leverage technology and analytics for strategic decision making in player acquisition, team formation and in-game decisions. Beyond performance metrics, the program also explores marketing strategies and revenue analytics, providing a well-rounded understanding of the field. “When you have enough data and a large enough sample of individuals, AI can help make predictions that otherwise would take prohibitively longer for a human to accomplish with traditional methods,” said Garrett Beatty, Ph.D., the assistant dean for innovation and entrepreneurship and an instructional associate professor in the College of Health & Human Performance’s Department of Applied Physiology and Kinesiology. “Because those data volumes are getting so large, AI models, machine learning, deep learning and other strategies can be leveraged to make sense and glean insights from sport and human performance data in ways that have never been done before.” The program seeks to offer several educational opportunities, such as individual courses, certificate programs and potentially a full degree program. In the long term, Nestler envisions the program evolving into a center or institute, beginning with establishing a research lab in the spring. Additionally, the program will leverage the university’s supercomputer, HiPerGator, to analyze larger data sets and use newer predictive modeling machine learning algorithms. “As faculty and staff move from working with box score and play-by-play data to using tracking data, which contains coordinates of all players and the ball on the field or court tens of times per second, the size of data files in sports analytics has grown tremendously,” Nestler said. “HiPerGator, with its large storage capacity and multiple central processing units/graphic processing units, is ideal for using in sports analytics work in 2025.” Nestler also aims to increase student involvement by enhancing UF’s Sport Analytics Club and hiring research assistants to work on projects for the University Athletic Association. “We need to take a broader view of what AI is and realize that it incorporates a lot of what we’ve been calling data science and analytics in the form of machine learning models, which came more out of statistics and computer science. Those are types of AI and those that I think will largely continue to be used in the coming years within the sports space,” Nestler said. “Also, we’re continuing to see growth in the number of people interested in working in this space, and I don’t foresee that changing. Fortunately, we are also seeing the number of opportunities available to those with the appropriate skills increase as well.”

4 min

The University of Florida’s ‘AI Queen’ is using AI technology to help prevent dementia

To help the 50 million people globally who live with dementia, the National Institute on Aging is finding researchers to develop tech-based breakthroughs that target the disease — researchers like the University of Florida’s “AI Queen.” It’s a fitting nickname for Aprinda Indahlastari Queen, Ph.D., who is applying artificial intelligence technology to study transcranial direct current stimulation, or tDCS — a technique that involves placing electrodes on the scalp to deliver a weak electrical current to the brain — as a possible way to prevent dementia. The assistant professor in the UF College of Public Health and Health Professions’ Department of Clinical and Health Psychology is using UF’s supercomputer, HiPerGator, to perform neuroimaging and machine learning analyses to study how anatomical differences may affect tDCS outcomes. “Investigating working memory in patients with mild cognitive impairment offers an opportunity to understand how cognitive processes are disrupted in the early stages of Alzheimer’s disease,” said Queen, whose study — funded by a National Institute on Aging research career development grant — integrates neuroimaging with information on brain structure that is unique to older adults and those with mild cognitive impairment. Refining the treatment with AI Using neuroimaging, Queen captures real-time changes during tDCS to the parts of the brain associated with working memory, which is the type of memory that allows humans to temporarily keep track of small amounts of information. Think of this as a mental “scratchpad.” Her study includes older adults with mild cognitive impairment as well as individuals who are cognitively healthy. In tDCS, a safe, weak electrical current passes through electrodes placed on a person’s head. The stimulation is being used in research and clinical settings for a variety of conditions and has shown partial success as a nonpharmaceutical intervention that can improve cognitive and mental health in older adults. But tDCS results can vary across individuals, and the suspected cause is both simple and complex: Everyone’s head is different. “One potential reason tDCS may not work for some individuals is the variation in head tissue anatomy, including differences in brain structure,” Queen said. “Since electrical stimulation must travel through multiple layers of tissue to reach the brain, and every individual’s anatomy is unique, these differences likely affect outcomes.” To address this further, Queen is using AI. “Artificial intelligence will play a major role in the modeling pipeline, including constructing individualized head models, conducting predictive analyses to identify which participants will respond to the stimulation, and disentangling multiple individual factors that may contribute to these outcomes,” Queen said. An estimated 10 to 20% of adults over age 65 have memory or thinking problems characterized as mild cognitive impairment. Their symptoms are not as severe as Alzheimer’s disease and other dementias, but they may be at increased risk for developing dementia. “The fact that not all individuals with mild cognitive impairment progress to Alzheimer’s disease emphasizes the need to identify effective interventions that can slow the progression to dementia,” Queen said. “This project presents an opportunity to differentiate between multiple types of mild cognitive impairment and investigate how tDCS affects the brain across these subtypes.” An AI visionary Queen, who joined the UF faculty under the university’s AI hiring initiative, is an instructor in the College of Public Health and Health Professions’ undergraduate certificate program in AI and public health and health care, and the co-chair of the college’s AI Workgroup. She is also the assistant director for computing and informatics at the UF Center for Cognitive Aging and Memory Clinical Translational Research and a member of UF’s McKnight Brain Institute. Queen received her Ph.D. training in engineering with a focus on building and running computational models to investigate medical devices. She experienced a career “a-ha” moment as a postdoc, when she was a co-investigator on a large clinical trial that paired brain stimulation with cognitive training to enhance cognition in older adults. “This experience was transformative for me. I had the chance to interact directly with participants, which was both fulfilling and eye-opening. These interactions allowed me to see the immediate, real-world implications of my work and sparked a passion for pursuing aging research,” Queen said. “I realized that, through this type of research, I could have a more direct impact on addressing age-related challenges, which prompted a shift in my career plans.” The new grant will help Queen further improve her understanding of the neurobiology and progression of Alzheimer’s disease and other dementias. “These experiences will ultimately prepare me to become a well-rounded aging investigator, capable of making meaningful contributions to the field of aging research,” Queen said. She also credits her mentors and collaborators — Ronald Cohen, Ph.D.; Adam Woods, Ph.D.; Steven DeKosky, M.D.; Ruogu Fang, Ph.D.; Joseph Gullett, Ph.D.; and Glenn Smith, Ph.D. — with supporting her as an early career scientist. “It really takes a village to get here!” Queen said.

View all posts