Contextual pricing

Contextual pricing refers to the practice of adjusting the price of a product or service based on various factors such as location, time, customer behavior, or market conditions. For example, a hotel might charge different rates based on the season, or an online retailer might offer personalized discounts based on past purchases. The idea is to optimize pricing to maximize sales and profits by considering the specific context in which the transaction occurs, ensuring that the price reflects both the perceived value to the customer and the competitive landscape.