Take Care in Using Consumer Data to Drive Dynamic Pricing of e-Commerce

Dynamic pricing is the practice of offering different prices to consumers based on various factors designed to maximize sales and profits, which may include the retailer's perception of the willingness of a particular consumer to pay at a given price point. This can be the basis for personalized pricing, the "holy grail" of which is to develop a methodology for "perfect price discrimination" that maximizes the amount each individual consumer is willing to pay.

10 minute read June 01, 2015 at 12:21 PM
By
Alan Friel And Hannah Bloink
Take Care in Using Consumer Data to Drive Dynamic Pricing of e-Commerce

Dynamic pricing is the practice of offering different prices to consumers based on various factors designed to maximize sales and profits, which may include the retailer's perception of the willingness of a particular consumer to pay at a given price point, often in connection with other factors such as a given point in time.

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