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  • With prices in flux, transparency is key
    Ansik, Creative Commons, 2012 ©

The highs and lows of dynamic pricing

As people become more wary of dynamic pricing, many businesses are developing transparent systems that engage the customer in the process.

Location Global

Prices have always fluctuated with supply and demand; hotels are more expensive in the summer, and clothes are cheaper at the end of a season. But, today, computer algorithms allow companies to alter prices by the second. Airlines have been doing this since the 1980s, with Amazon adopting the model several years ago. Yet this practice has begun to brook dissent, from Twitter to The Wall Street Journal. Consumers are alarmed by the thought that they are being manipulated by covert price changes.

With customers increasingly wary of dynamic pricing, businesses must be inventive in the ways they ...