The Era of Personal Value Automatic translate

Digital commerce has created a persistent illusion of limitless choice and absolute transparency. When a buyer opens a smartphone app, they see a set of numbers and perceive them as a static value. They believe the seller has set this price for the entire market, based on production and logistics costs. This is a fundamental misconception. In the modern e-commerce ecosystem, fixed pricing has become an archaism. What we see on the screen is the result of an instant, invisible auction.

In this auction, the only item at stake is a specific individual’s solvency. Marketplace algorithms constantly solve a complex optimization problem: what is the maximum amount that can be withdrawn from a user without causing them to abandon the transaction? The instrument of this highly precise financial surgery is not standard price tags, but personalized discount combinations.

The hunt for consumer surplus

Classical economic theory operates with the concept of "consumer surplus." This is the difference between the amount a customer is willing to pay for a product and what they actually pay. For a corporation, any surplus left in the customer’s pocket is a direct loss of profit. A perfect transaction for a business occurs when the price exactly matches the customer’s marginal willingness to pay.

Implementing such a system in physical retail was technically impossible. You can’t change price tags on supermarket shelves depending on how expensive the suit the customer is wearing. The internet has eliminated these physical limitations. Now, displays are customized for each viewer. However, simply showing different prices to different people is a risky strategy.

Users communicate, share screenshots, and direct price discrimination inevitably leads to reputational scandals. This is where the promo code comes in. It serves as the perfect buffer, legitimizing inequality. The base price remains inflated for everyone, creating the appearance of equality, while the actual sales price is regulated by a coupon, issued selectively.

Signals of poverty and wealth

The system continuously scans user behavior for clues about their attitude toward money. Search activity is one of the clearest indicators. When a user intentionally leaves the app and starts searching third-party aggregators for new AliExpress promo codes or coupons for local marketplaces, they send a powerful signal to the algorithm.

For the neural network, this action signifies high price sensitivity. Such a user is willing to spend time to save money. To retain them and drive them to the checkout, the system must offer a discount. Meanwhile, a customer who immediately clicks the "Buy" button, ignoring the code entry field, is marked as price-insensitive. Next time, the algorithm will suggest products with a higher margin.

Behavioral biometrics

To set the right price, it’s not enough for a platform to know your purchase history. Data collection has reached the level of behavioral biometrics. Modern scripts analyze not only what you buy but also how you buy it. They record your mouse cursor movements, page scroll speed, and the time your finger lingers over a button.

Chaotic, rapid movements may indicate anxiety or a rush. In this state, a person is less inclined to comparative analysis and rational choice. The algorithm may react to this by offering faster delivery at a higher price or only a nominal discount. Conversely, slow, methodical scrolling indicates a thoughtful shopper who needs to be stimulated with a more compelling offer.

Technical analysis of the device also plays a role in pricing. Smartphone model, operating system version, and even battery level become variables in the cost equation. A well-known case study with taxi services showed that users with critically low battery levels are more likely to agree to higher fares. Marketplaces employ a similar logic: the fear of disconnection lowers the threshold for critical thinking.

Loyalty Tax

There’s a counterintuitive paradox: the longer and more frequently a customer uses a platform, the less favorable the terms they receive. Marketers call this phenomenon a "loyalty tax." The algorithm calculates the likelihood of a customer defecting to a competitor (the churn rate). If this likelihood is low, the system stops investing in retention.

A loyal user is already "trapped" in the ecosystem. They have a linked bank card, saved delivery addresses, and the interface has become familiar. Laziness and habit are the platform’s main allies. According to the mathematical model, offering a discount to a loyal customer is pointless — they’ll buy the product at full price.

The generous offers we sometimes see in advertising are almost always aimed at the "Acquisition" segment — attracting new customers. Once a new customer makes a few purchases and establishes a behavioral pattern, the flow of bonuses dries up. They are relegated to the "Retention" segment, where incentive budgets tend to zero.

Psychological engineering

A promo code works more effectively than an automatic price reduction thanks to the peculiarities of the human psyche. Entering a combination of characters is an active action. It creates a false sense of control in the user. They feel like a winner, having "hacked" the system or found a loophole.

This gamification effect triggers a dopamine response. A purchase made with a secret code feels more valuable than simply purchasing a discounted item. Marketplaces exploit this feeling, turning shopping into a quest. Roulettes, secret emails, personalized offers — all these are decorations concealing a cold, calculating motive.

Artificial urgency plays a special role. Most algorithmic coupons have a strictly limited lifespan. The countdown timer blocks rational thinking. Fear of missing out (FOMO) drives people to make impulsive purchases. The algorithm often tosses out a coupon at moments of greatest vulnerability — payday or Friday evening.

Price sterilization

The widespread introduction of personalized pricing through promo codes is changing the very structure of market relations. The concept of "market price" is becoming blurred. Two neighbors on the same landing can buy an identical vacuum cleaner at a thirty percent price difference, and both will feel confident in the deal.

This makes it impossible to objectively compare offers. Price aggregators become meaningless, as they display "display" prices that bear no resemblance to what a specific user will see in their cart after applying personalized coupons. The market is fragmented into millions of isolated transactions.

Sellers on platforms also become hostages to this mechanic. To be included in the recommendation algorithms and participate in marketplace promotions, they are forced to inflate the nominal price of their products. This creates price inflation, which is necessary for the platform to manipulate the discount rate.

The Black Box of Economics

Dynamic pricing technologies continue to grow more sophisticated. Deep learning networks are coming into play, capable of finding subtle correlations in massive data sets. The system might decide that a user who only accesses the app at night should be sold at a higher price, or that fans of certain music genres are more prone to impulse spending.

In this new reality, a promo code is no longer a gift or a marketing ploy. It has been transformed into a correction factor in a complex formula. This formula achieves one goal: maximizing platform profits by exploring the limits of each individual’s financial flexibility. Transparency in trading has become a thing of the past, replaced by algorithmic demand management.