dynamic pricing,

use 3-4 sentences to answer each questions.

If you owned your own business and had the information required to engage in dynamic pricing, would you do so? Explain.
What competitive factors must your firm consider when establishing prices?
Describe the strategies you could use in setting the price of your product or service.

Solution Preview

If you owned your own business and had the information required to engage in dynamic pricing, would you do so? Explain.

Dynamic pricing is the act of changing the prices of services or products to reflect the changes in the market conditions. Yes, I would engage in dynamic pricing because of the following reasons: Firstly, it helps you get the maximum profits in return from different customers. This is so because the prices adjust accordingly depending on the changes in the demand patterns ensuring maximization of the profits with each change in the demand pattern (Babaioff,. et al. Slivkins, A. 2015).

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