Question

Marketing Essay ASAP please.

  

What is dynamic pricing and when should a company use this strategy?

What issues should marketers anticipate with respect to buyer reactions to price changes ?

Answer 1

Dynamic pricing

This category of pricing is determined by customer's ability to pay. It is also known as demand pricing, surge-pricing, and, time-based pricing. Firms set flexible prices based on market demands. It applies variable prices, in place, of fixed prices. It allows organizations that are online retailers to adjust prices in response to market demands. It is a retail, and, e-commerce strategy. As data is analyzed, optimal pricing can be determined. It is not the same as personalized pricing.

The cost of goods, and, services flows, and, ebbs in response to shifts in supply, and, demand. Prices fluctuate several times over the course of single day. Entertainment venues, theme parks, sports teams use dynamic pricing. Hotels, and, airlines calibrate ticketing deals.

Online retailers tweak prices per day. Shoppers wait for bargains. Smart shelves in supermarkets, with digital price displays allows retailers to offer deals, and, information about the products. The retailers can thus still have the dynamic pricing strategy in physical stores as well. Tesco, Sainsbury, Morrisons have tried dynamic electronic pricing systems selling products cheaply during the rush hour to encourage consumers to buy more. The prices can provide the consumers a bargain depending on their purchasing habits. Consumers embrace dynamic pricing. Organizations respond to market trends, and, market dynamics.