Question

“I rented a car through price line via the internet. I got a great price for 10 days at 25$ a day. I reserved the car from Vernon NJ and I was scheduled to pick it up at the Ontario California airport. When I arrived to pick it up the Budget attendant said that priceline cancelled the reservation. I said no problem, I am here so reinstate it. They said sure and asked for $89 per day. I immediately called priceline who refused to do anything. I explained that I was stranded 2600 miles from home and rep kept repeating there was nothing she could do, it was budget who cancelled it- I demanded that the budget rep print the cancel order and; low and behold Budget cancelled it but it appears that it was in concert with priceline.” This is an example of: q) everyday low pricing h) dynamic pricing r) uniform delivered pricing i) loss-leader pricing s) bait and switch deceptive pricing j) price lining/pricing points t) price fixing p) cash discounts o) trade discounts l) basing-point pricing k) flexible-price policy

Answer 1

Here According to me this is a example of dynamic pricing because in this case we clearly see that once a time the rent ot the car of a single day upto 10 days is 25$ and after that when the person go to the airport to take the car they can canceling the reservaton and then they ask for a higher rates of price line and the person is agree to give the higher rent This clearly shows that the person knows the rules of flexibity He knows that may be if the price gets changed then he used to give higher price But when He just listen the price of rent gets high upto 89$ from 25$ Then he gets shocked which shows it is Unreasonable upto a certain level so he also said that various reasons in his favour to made them agree at lower rate such as he stranded 2600 miles from home . All this shows that it is a dynamic pricing means in which price gets changed very speedily with heavy fluctuations time to time