OnDemand WTP Pricing Research

Dynamic Pricing – look before you leap | COMMVIA

Fashion shoppers are used to seasonal changes in price, but will they now put up with daily price changes?

Dynamic pricing takes this to whole new level and for online only businesses could mean a price change several times a day as events unfold. Its a great technical solution to increasing margin and potentially sales but it just seems to have overlooked one tiny problem area. Consumers are not yet happy with the idea.

If you’ve ever worked in a store you will be familiar with the consumer who comes back when the sale starts to try and get a discount an on item they bought full price last week. Consumers are never happy to see prices change downwards after they have bought. Dynamic pricing exacerbates this bad feeling towards the brand who constantly shifts pricing.

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Dynamic Pricing – look before you leap.