Customizing Prices in Online Markets

Abstract

Dynamic pricing is the dynamic adjustment of prices to consumers depending on the value these customers attribute to a good. Underlying the concept of dynamic pricing is what marketers call price customization. Price customization is the charging of different prices to end consumers based on a discriminatory variable. Internet technology will serve as a great enabling tool for making dynamic pricing accessible to many industries.

Keywords

• online markets
• customizing prices
• customization
• market segmentation
• cost of segmenting
• cost of policing
• dynamic pricing