Interesting blog in the Harvard Business Review in which the author Rafi Mohammed argues that Dynamic Pricing – so prevalent in the travel industry – will not work for online retailers such as Amazon and Best Buy, now experimenting with the concept. However, I would argue retailers of all types have been using dynamic pricing forever.
Low demand for a product has always led to price decreases while the reverse is true when demand is strong – prices are consistently high. Perhaps what the author means that in a digital world these price adjustments are happening more frequently – ie they are more ‘dynamic’. Got me thinking, anyway, and you can see the article here.