Imagine a scenario in which a store could change the price of a single item multiple times a day. The idea is called dynamic pricing, and it happens more often than you think in other areas of commerce.
“Dynamic pricing is this idea of changing prices constantly over short intervals, and as a result it may try to help a company maximize their profit,” said Yehua Wei, an associate professor of business administration in the decision sciences area at the Fuqua School of Business at Duke University.
Ride-share companies and airlines use this tactic when customers make purchases online. An Uber price can change based on the supply of drivers, the demand of passengers, or even the weather.
“When you book an airfare ticket online, the prices are updated fairly frequently,” Wei said.
So could the dynamic pricing method be used in brick-and-mortar stores?
“If the dynamic changes while I’m …