OnDemand WTP Pricing Research

Dynamic pricing ain’t all that | RetailWire

Personalized pricing is different — and requires more complex analytics to pull off. For example, at Jet.com, depending on what you add to your cart, each item gets repriced right in front of you. There is “the” price, and there is “your” price. Repricing might depend on the deals Jet.com has with suppliers, the supply chain efficiencies of the items you’ve selected, or your shopping behavior, whether that is localized behavior, like adding something to your cart and then not buying it; or behavior over time, like offering discounts to high value shoppers to expand the categories they shop.

As long as those offers can be rationalized to avoid accusations of bias, variable prices can be explained by showing how “your” price was calculated versus “the” price.

I think personalized pricing is the future, and that requires a lot more capability than simply changing prices many times over the course of the day. Dynamic pricing, the definition in use today, is just a fad, and will ultimately be out-gamed, whether by competitors, or by consumers themselves.

Read complete article here:

RetailWire Discussion: Dynamic pricing ain’t all that.

Post a Comment

WP-SpamFree by Pole Position Marketing