Pricing strategies: dynamic pricing
Your pricing strategy is the choice you make about how much to charge customers for your product or service. It is a key element of the marketing mix, and it needs to be consistent with all the other elements of the mix (product, place, promotion) to ensure that the product/service has the best chance of success in a competitive market-place.
Dynamic pricing is a specific pricing strategy that allows you to change your prices rapidly in response to variations in demand.
When to use it
- To decide how much to charge for a new product or service.
- To understand the pricing choices made by your competitors.
- To identify opportunities to make additional profits for your firm.
- To adapt your prices in response ...