Dynamic Pricing

   

Definition: Dynamic Pricing is a pricing strategy based on Discriminatory Pricing, which allows changing prices based on the supply and demand, time, competitor's prices, customers, or other external factors. Dynamic Pricing typically uses business analytics to model and forecast these factors to change the prices of products & services dynamically. A popular example of Dynamic Pricing is ride-hailing services such as Uber, which changes the price for a route based on the demand and time of the day. But airlines are well known to sell seats at dynamic prices for many years.
Also referred to as Surge Pricing or Demand Pricing or Time-based Pricing.


   

   

More on dynamic pricing.
More on pricing: By-Product Pricing, Cost-based Pricing, Personalized Pricing, Price Elasticity, Pricing, more...



   

MBA Brief offers brief, yet very accurate definitions of MBA concepts, frameworks, methods and models. We keep it short and provide some links in case you'd like to learn more around a subject.




© 2020 MBA Brief - Last updated: 27-11-2020  -  Privacy   |   Terms