How retailers are using dynamic pricing based on consumer behavior
Summary
Retailers are using dynamic pricing online, which means prices change often based on how many products are available, how many people want to buy, and the shopper’s behavior. A CBS California investigation found prices at stores like Old Navy, Target, and Amazon changing regularly, making it hard for shoppers to know when prices are lowest.Key Facts
- Dynamic pricing adjusts prices in real time using data about supply, demand, and consumer habits.
- Retailers may charge different prices based on factors like shopping behavior, demographics, time of day, and device used.
- Old Navy’s online cart prices swung by up to 36% over a month, changing almost daily.
- Target’s prices changed by over 20% in two weeks, while Amazon’s changes were smaller.
- Shoppers find it difficult to predict when prices will be lowest due to frequent and unpredictable changes.
- Online prices change more often than in physical stores, which update prices less frequently.
- Amazon states it keeps prices low by matching competitors and offering deals.
- Consumers who try to wait for sales find this strategy unpredictable because prices can rise and fall multiple times.
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