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    Global Manager: Dynamic Pricing

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    What company would you choose and explain how the company you have chosen uses dynamic pricing. What are the benefits and drawbacks of dynamic pricing for the company. Conclude with a summary of your findings.

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    Step 1
    The company I choose to illustrate dynamic pricing is Amazon.com. In the past Amazon.com was caught analyzing customers' past purchase history and setting prices. The company matched the ability of the person to pay to the price of goods sold. Dynamic pricing takes place when customers are divided into two or more groups with separate demand curves and different prices are charged to each group. In case of Amazon.com the price varied by the customer's identity/purchase history. The history of the customer was used as a proxy for willingness or ability to pay. ...

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