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It's kind of a stretch to call Tinder a tech company. It's a hook up site, basically, and they want to charge less attractive people more money for the same reason fat people can't find stylish clothes - too many unattractive people will hurt your brand.
Age is not a good discriminator of looks, particularly starting at 28.
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What potential effect and margin are you thinking of?
Marginal utility of Tinder probably increases for premium users, and I presume that marginal use also increases for those users. Marginal use of Tinder probably decreases among people who feel excluded by the price discrimination and do not buy into it. Marginal utility of Tinder probably increases for the college-aged target demographic if marginal use of Tinder by older (especially poorer and older) users declines.…
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Senior discounts are based on the assumption that this age group is likely to be formed by people who are retired. Similarly, student discounts are intended for full time students that don't have the "expected" source of income that is having a job. I guess Tinder would be ok if they offered student discounts (or senior discounts ;) ). The issue here is whether they can charge 27 year old professionals a different ra…
> That is potentially a deliberate attempt to skew the demographics of their user base towards younger users Or maybe those over 28 are willing to pay more, and this is a move to maximize revenue.
This does happen to be the motivation that Tinder stated.
> Tinder is no different; during our testing we've learned, not surprisingly, that younger users are just as excited about Tinder Plus, but are more budget constrained and need a lower price to pull the trigger."
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Seriously? That's just the kind of guy who will be summarily ignored, too. What a waste of twenty bucks.
OKCupid is smart about that too, based on how attractive you are you'll see -- and be visible to -- people in a similar "league" to you. You're not going to be seeing beautiful women who could model if you're an unattractive male. This is pretty good for people who are unattractive, because they can focus on people they're more likely to have success with. https://www.quora.com/Is-being-one-of-the-most-attractive-pe.…
I'm reasonably certain the UK's age discrimination legislation under the Equality Act 2010 could be used to take Tinder to court for this. Basically, it's illegal to charge people more simply because of how old they are. http://www.equalityhumanrights.com/your-rights/equal-rights/...
Serious questions: Can they give people discounts based on how old they are? Can they give student discounts? Is there a legal line between giving discounts/charging less vs charging more?
Charging less because someone is young would still be open to an age discrimination case, just as the opposite is true.
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Marginal utility of Tinder probably increases for premium users, and I presume that marginal use also increases for those users. Marginal use of Tinder probably decreases among people who feel excluded by the price discrimination and do not buy into it. Marginal utility of Tinder probably increases for the college-aged target demographic if marginal use of Tinder by older (especially poorer and older) users declines.…
We know that tinder's long term goal is to become a method of social discovery method for anything. That is why I don't think that their goal is to decrease any usage of their product as long as that usage is not "incorrect" in their minds.
But in any event, even if they were going to move into "social discovery of anything" as a technology company, it does not follow that the current Tindr app and accounts is going to be used for "social discovery of anything," because it is obviously absurd to imagine that people want to use a hook-up app for "social discovery of anything." There is no market for people who are like, "Hey, I want to find the perfect drapes for my living room remodel and also at the same time look for casual sex."
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We know that tinder's long term goal is to become a method of social discovery method for anything. That is why I don't think that their goal is to decrease any usage of their product as long as that usage is not "incorrect" in their minds.
I don't know that, actually -- I'm sure that Tinder has said something along those lines at some point, but founders of companies saying that their company is going to move into some ultra-broad undefined space that they have little demonstrated competence in is not exactly rare. But in any event, even if they were going to move into "social discovery of anything" as a technology company, it does not follow that the…
I really think this was the most boneheaded monetization plan I've seen in a while. This group is the flightiest, most experimental bunch of early adopters, and that kind of price tag is going to make them laugh out loud. It is ten times what I thought it was going to be. Limiting interaction with the app (driving users to the next service, conveniently located at the icon next door) was strike one. This is strike tw…