Dynamic Pricing
Dynamic pricing is a pricing strategy where the price of a product or service fluctuates based on various factors such as demand, time, customer behavior, and competition. This means that prices can change in real-time, allowing businesses to maximize revenue. For example, airline tickets often cost more during peak travel seasons and less during off-peak times. Similarly, online retailers might adjust prices depending on the number of visitors to their site or changing market conditions. This approach helps companies respond more effectively to market dynamics while offering customers prices that reflect current demand.
Additional Insights
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Dynamic pricing is a strategy where the price of a product or service changes based on various factors, such as demand, time of day, or customer behavior. For example, airline tickets often vary in price depending on how many seats are left, how close the departure date is, or how many people are searching for flights. This approach allows businesses to maximize revenue by adjusting prices in real-time, responding to market conditions, and consumer demand. It’s commonly used in industries like travel, hospitality, and retail.