Internet retailers have discovered that the web is a perfect setting to optimize prices.
It is almost costless for e-tailers to change prices, and it's equally easy to measure customer reactions. Given this fertile price-changing environment, Internet retailers are varying prices for 5 key reasons:
Determine the right price. Every business faces the challenge of determining... (read more here)
Seek pockets of opportunity. Varying prices and reviewing the resulting purchasing behaviors.... (read more here)
Remain Competitive. If rivals change prices frequently, to remain competitive....(read more here)
Implications on Complimentary/Ancillary Sales. Determining the "right" price should also take into account.... (read more here)
Segment Customers. Identifying who buys at the lowest and highest prices allows.... (read more here)