What is dynamic pricing Why is it especially prevalent onlin

What is dynamic pricing? Why is it especially prevalent online? Is it legal?

Solution

Dynamic pricing is defined as the process of determining a product’s value incommercial transactions in a fluid manner depending on current market conditions.Dynamic pricing is gaining ground among business owners compared to the moretraditional fixed pricing method. Also called real time pricing (Hogan, 2014).

Dynamic pricing has become something currently seen in online pricing.This is when the exact same product is sold for different prices depending upon the market demand. Dynamicpricing uses information gathered from customers online and it allows online companiesto adjust the prices of identical goods to correspond to a customer’s willingness to pay.As long as the price differences are based on reasonable business practices , it comes under legal category.