As a kid, my preferred tooth-rotting treats were always sour gummies. I adored the way the intense sourness transformed into a chewy, artificial fruitiness. During my teenage years, I traded the childish “sour worms” for the more sophisticated Sour Patch Kids and haven’t looked back. For most of my adult life, I have been purchasing them using shopping loyalty cards. Companies like Safeway, CVS, Walgreens, and others now possess years’ worth of my food shopping history. They have deduced that I’m a fan of sour candies. CVS knows that if they entice me with a $1-off voucher, I’ll succumb to my craving despite the risk of cavities. Thus, I frequently receive the coupon on the right. In contrast, you probably don’t. When you occasionally crave Sour Patch Kids, you likely pay the full price for them. I also love to enter giveaways and obtain free candy as prizes! There is currently a Sour Patch Kids Giveaway going on (more on that below).

The Power of Personalized Data

The New York Times shined a spotlight on this individualized data form of price discrimination with an article titled, “Shopper Alert: Price May Drop for You Alone.” Grocers such as Safeway and Kroger are devising specific offers and prices tailored to shoppers’ behavior in an effort to increase their slim profit margins. For example, they might offer a larger box of Tide and pricier bologna to a shopper with a big family and who isn’t particularly price-conscious.

Over time, this pricing model is expected to spread to other grocery chains and could potentially replace standardized price tags. While some consumers may be concerned about the privacy implications of using personal shopping data, retailers are banking on the majority of people accepting the trade-off if it means they receive better prices on products they want.

Privacy Concerns with Shopping Loyalty Cards

Privacy issues surrounding shopping loyalty cards aren’t new. If you have one, you’re allowing your shopping habits to be collected and tracked in exchange for discounts. One data-mining CEO, aware of how valuable this information could be to other industries such as insurance brokers, doesn’t use loyalty cards when purchasing junk food and only pays for burgers in cash.

Previously, everyone received the same discount; however, with the personalization made possible through smartphone apps and individualized coupons, different shoppers can be targeted with different deals and, consequently, different prices.

The Potential Irritation of Price Discrimination

Charging different prices for the same goods may annoy some people. Amazon faced significant backlash in 2000 when it offered varying prices for DVDs to different users because it was a little too obvious. Personalized coupons are a less conspicuous and offensive method of price discrimination. Nevertheless, in a University of Pennsylvania survey from 2005 cited in the article, 76% of 1,500 respondents said, “it would bother [them] to learn that other people pay less for the same products,” and 64% agreed that “it would bother me to learn that other people get better discount coupons than I do for the same products” (apologies in advance to gummy lovers who aren’t getting my fantastic deals).

Gaming the System

Perhaps people would feel differently if they realized there were ways to manipulate the system, as noted by the New York Times:

Like any good shopper, Ms. Vanek is already starting to game the system: she noticed that she received cheaper prices on ground coffee when she alternated between Starbucks and Dunkin’ Donuts brands rather than buying just Starbucks.

Personalization Beyond Coupons

Coupons aren’t the only means by which supermarkets attempt to personalize various shoppers’ experiences. Catalina Marketing is the data-handling firm responsible for Safeway’s shopper loyalty program, among numerous others. Catalina claims to monitor “the evolving purchase histories of more than 75 percent of U.S. shoppers… with an in-store network of 50,000 food, drug, and mass merchant locations worldwide.” Essentially, they know A LOT about what we’re buying.

The Future of Personalized Shopping

Perhaps one day, everywhere you frequent will resemble Cheers, where everyone knows your name.

Some aspects of this personalization may seem creepy, but it’s also incredibly convenient. And it works. So companies will continue to find ways to mine data to determine what we need, what we like, what we might like, and how much of a discount they need to offer on Sour Patch Kids to entice us to buy them every time we shop.

SPK Lemonade Fest Sweepstakes

Enter to win a $100 gift card, SOUR PATCH KIDS-branded Swirly Straw Tumbler, SOUR PATCH KIDS Lemonade Fest, and SWEDISH FISH Blue Raspberry Lemonade!

Sweepstakes Details:

• The Sweepstakes begins at 12:00 AM (midnight) Eastern Time (ET) on June 12, 2023, and ends at 11:59:59 PM ET on July 10, 2023.
• Open only to legal residents of the fifty (50) United States and the District of Columbia who are at least eighteen (18) years old at the time of entry.
• One (1) entry per person/email address per day during the Sweepstakes Period.
• Thirty (30) prizes will be awarded. Each prize consists of:
  • One (1) $100 gift card
  • One (1) SOUR PATCH KIDS-branded Swirly Straw Tumbler
  • One (1) 8-oz package of SOUR PATCH KIDS Lemonade Fest
  • One (1) 3.6-oz package of SWEDISH FISH Blue Raspberry Lemonade
• The approximate retail value (ARV) of each prize is $119.70.
• The total ARV of all available prizes in the Sweepstakes is $3,591.

Enter here: SPK Lemonade Fest Sweepstakes

Final Thoughts

Saving money on Sour Patch Kids and other personalized shopping experiences is becoming increasingly common as retailers utilize data to create customized offers and prices for their customers. While some may be concerned about privacy issues, others are embracing the convenience and benefits that come with these tailored shopping experiences. By understanding and even gaming the system, savvy shoppers can take advantage of these personalized deals and discounts to make the most of their shopping experiences.