With _____ pricing, a variable rate is used for each customer, often based on a product’s or a service’s demand.DynamicA la carteValue-basedMarket-based
Question
With _____ pricing, a variable rate is used for each customer, often based on a product’s or a service’s demand.
- Dynamic
- A la carte
- Value-based
- Market-based
Solution
The correct answer is Dynamic pricing.
Dynamic pricing is a strategy where the price of a product or service fluctuates based on various factors, primarily demand. This pricing model allows businesses to set different prices for individual customers based on their willingness to pay, market conditions, and other external factors. It is commonly used in industries such as travel, hospitality, and ride-sharing services. The main advantage of dynamic pricing is that it can maximize revenue by effectively responding to changes in demand and supply. Other options like A la carte, Value-based, and Market-based pricing do not specifically refer to the variability of pricing based on demand in the same direct manner as Dynamic pricing does.
Similar Questions
Pricing StrategiesProductA: Competition-based pricing1. GroceriesB: Customer value-based pricing2. Airline ticketsC: Cost-based pricing 3. Luxury goods
Explain one reason why airlines use dynamic pricing, especially when selling tickets to online customers.
In a perfectly competitive market, price per unit to the purchaser is synonymous with per unit or revenue to a seller.
State which method of pricing is used when a new product is launched with a low price to capture as much market share as quickly as possible.
The variable costs incurred change depending on the level of output of product goods and services of an enterprise?
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.