Dynamic pricing policy refers to
A)setting the price of a line of products at a number of different specific pricing points.
B)setting the prices for all items in a product line to cover the total cost and produce a profit for the complete line, not necessarily for each item.
C)deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well.
D)setting different prices for products and services in real time in response to supply and demand conditions.
E)adding a fixed percentage to the cost of all items in a specific product class.

Question

Quizplus · Accepted Answer

Dynamic pricing policy involves setting different prices for products and services in real time in response to supply and demand conditions. This means that prices may change based on factors like competition, customer demand, and inventory levels. This type of pricing strategy is common in industries like travel, hospitality, and e-commerce, where demand fluctuates based on a variety of factors. By adjusting prices based on real-time market conditions, companies can optimize their revenue and take advantage of opportunities to maximize profits.

Dynamic Pricing Policy Refers to