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Why Online Retailers’ New Pricing Strategy Will Backfire

It’s emerged as this season’s hot holiday pricing strategy for online retailers such as Amazon and Best Buy: dynamic pricing. That’s the strategy, employed by industries such as airlines, in which a seller moves prices up and down quickly, charging similar customers different prices for the same product or service. What’s surprised me is how extreme these price fluctuations have been.

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It’s emerged as this season’s hot holiday pricing strategy for online retailers such as Amazon and Best Buy: dynamic pricing. That’s the strategy, employed by industries such as airlines, in which a seller moves prices up and down quickly, charging similar customers different prices for the same product or service. What’s surprised me is how extreme these price fluctuations have been.

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Why Online Retailers’ New Pricing Strategy Will Backfire

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