Dynamic Pricing

Definition

Changing prices based on demand, inventory, or other factors. It's when airlines and Uber make more money from you because it's raining.

Example Usage

We implemented dynamic pricing for peak hours and our revenue increased 15%, but our customer satisfaction plummeted.

Origin

Economics and pricing strategy terminology

Fun Fact

Amazon changes prices on millions of products multiple times per day using dynamic pricing algorithms.

Source: Pricing strategy and ecommerce terminology

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