What pricing strategy is used when a seller changes prices in response to its existing inventory and the prices of its competitors?
A)price matching
B)competitive parity pricing
C)every day low pricing
D)dynamic pricing
E)showrooming

Question

Quizplus · Accepted Answer

Dynamic pricing is the pricing strategy used when a seller changes prices according to the existing inventory and the prices of competitors. It involves adjusting prices frequently in response to changing market conditions, demand, and supply. This strategy enables sellers to maximize revenue and profitability by charging different prices to different customers based on their willingness to pay. It is commonly used in industries such as airline tickets, hotels, and e-commerce. The other pricing strategies mentioned - price matching, competitive parity pricing, every day low pricing, and showrooming - do not involve adjusting prices based on existing inventory and competitors' prices.

What Pricing Strategy Is Used When a Seller Changes Prices