A growing number of companies are using “dynamic” pricing.
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The practice goes back to the early 1980s when American Airlines began
to vary the price of tickets to fight competition from discounters such
as People’s Express. It spread to other airlines, and thence to hotels,
railways and car-rental firms. But it only became the rage with the
arrival of e-commerce.
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The practice is spreading to physical retailers, which are installing
electronic price displays and borrowing pricing models from e-retailers.
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