Amazon As A Dynamic Pricing Company

Dynamic Pricing Student’s Name Institutional Affiliation Dynamic Pricing Dynamic pricing is a strategy that organizations utilize in pricing their offerings in accordance with the frequent demand for their products and services. Companies have an opportunity of changing their prices by taking into account the pricing of close rivals, demand and supply, and other external factors. According to Adida & Perakis (2010, p. 291), the dynamic pricing approach is a common practice in travel, hospitality, and entertainment industries. However, each of them takes a unique approach in pricing on the basis of customer needs and demand of products or services. In the current highly competitive business environment, dynamic pricing is the latest trend that is relevant in the age of e-commerce companies. Amazon is an ideal example of a firm that utilizes the strategy in updating the prices of its products frequently. Amazon as a dynamic pricing company has capitalized its approach by understanding the market trends. The company focuses on enhancing customer satisfaction by offering discounts on various items. The management uses dynamic pricing by being conservative tow...