Many e-tailers, such as eBay and Priceline, use ________ pricing.

Question

Quizplus · Accepted Answer

eBay and Priceline use dynamic pricing, which is the practice of constantly changing prices in response to market demand, competitor pricing, and other factors. This allows them to optimize profits and sales in real-time. Penetration pricing involves setting a low price to penetrate a new market, skimming pricing involves setting a high price for a new or innovative product, psychological pricing involves using pricing strategies that appeal to the emotional and psychological responses of consumers, and odd-even pricing involves setting prices just below a round number (e.g. $9.99 instead of $10.00) to make them seem lower. None of these pricing strategies fit the e-tailer model as well as dynamic pricing.

Many E-Tailers, Such as EBay and Priceline, Use ________ Pricing