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Pros and Cons of Dynamic Pricing

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Internet retailing frequently uses dynamic pricing. Discuss the pros and cons of dynamic pricing. List at least three products where dynamic pricing should not be used, and give rationale for your selection.

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This solution discusses the pros and cons of dynamic pricing.

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Dynamic pricing occurs when the company automatically adjusts the price of a product depending on the current environment. For example, Amazon.com has been accused of using dynamic pricing. The database takes into account many different feature such as: how much as the customer purchased already, what products have they looked at, how many times have their logged into their profile and looked at a product, where they live - and then determines how much to ...

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