Overview
Dynamic pricing strategies are essential for businesses looking to maximize revenue in a competitive market. By adjusting prices based on real-time data, companies can respond to changes in demand and consumer behavior effectively. This approach not only helps in optimizing sales but also allows bus...
Key Terms
Example: If a 10% increase in price leads to a 20% drop in sales, the price elasticity is -2.
Example: Segmenting customers by age, income, or buying habits.
Example: Analyzing a competitor's pricing strategy to adjust your own.
Example: Using live sales data to adjust prices on an e-commerce site.
Example: Airlines using revenue management to adjust ticket prices based on demand.
Example: Ride-sharing apps changing fares based on demand and supply.