What is dynamic pricing and how is it used in e-commerce?
What will be an ideal response?
In dynamic pricing, the price of a product varies depending on the demand characteristics of the customer or the supply situation of the seller. For instance, online retailers from Amazon to Walmart change prices on many products based on time of day, demand for the product, and users' prior visits to their sites. Using big data analytics, some online firms can adjust prices at the individual level based on behavioral targeting parameters such as whether the consumer is a price haggler (who will receive a lower price offer) versus a person who accepts offered prices and does not search for lower prices. Prices can also vary by zip code, based on economic characteristics of the purchaser's geographic location. Uber, along with other ride services, uses surge pricing to adjust prices of a ride based on demand.
You might also like to view...
Which of the following statements is most nearly true concerning the activities of mortgage companies:
A: They are organized under federal laws and thus are not subject to state regulations; B: They never service the loans they create; C: They prefer negotiating loans which are salable in the secondary market; D: They are not active in the field of government-insured loans.
At Neiman Marcus, a first-class department store, customers shop for specialty products and have come to expect assistance in every phase of the shopping process. Neiman Marcus is a ________
A) self-service retailer B) limited-service retailer C) full-service retailer D) specialty store E) superstore