What is Dynamic Pricing

 

What Is Dynamic Pricing(Time-Based Pricing)?

Dynamic pricing, also known as time-based pricing or third-degree price discrimination, occurs when customers are divided into two or more mo re groups with separate demand curves, and different prices are charged to each group. When W hen done successfully, price discrimination practices like this can increase the profit of a firm by enabling the firm to capture more consumer surplus. However, et ethical hical issues exist with some price discrimination policies, especially thanks to the advent of technology, te chnology, which gives firms the possibility of charging prices based on consumer history and profiling.

S1=Supply P1,P2=Price D1,D2=Demand Time-based pricing refers to a type offer or contract by a provider of a service or supplier of a

commodity, in which the price depends on the t he time when the service is provided or the commodity is delivered. The rational background of time-based pricing is expected or observed change of the supply and demand balance during time. Time-based pricing includes fixed time-of use rates for electricity and public transport, dynamic pricing reflecting current supply-demand situation or differentiated offers for delivery of a commodity depending on the date of delivery (futures contract). Most often time-based pricing refers to a specific practice of a supplier. Infomediary Model

Data about consumers and their consumption habits are valuable, especially when that information is carefully analyzed and used to target marketing m arketing campaigns. Independently collected data about producers and their products are useful to consumers when considering a purchase. Some firms function as infomediaries (information intermediaries) assisting buyers and/or sellers understand a given market.

 

Advertising Networks -- service that feeds banner ads to a network of sites, thereby enabling

advertisers to deploy large marketing campaigns. c ampaigns. By using cookies, the Ad Network operator collects data on web users that can c an be used to analyze marketing effectiveness. Audience Measurement Services -- online audience market research agencies.

c ustomers such as Incentive Marketing -- the customer loyalty program model. Provides incentives to customers redeemable points or coupons for making purchases from associated retailers. Data collected about users is sold for the purpose of targeted t argeted advertising. Metamediary -- facilitates transactions between buyer and sellers by providing comprehensive

information and ancillary services, but does not get involved in the actual exchange of goods or services between the parties.

What are the components of e-SCM(Supply Chain Management)? Supply chain management (SCM) is the management of an interconnected or interlinked between network, channel and node businesses involved in the provision of product and service packages required by the end customers in a supply chain.[2] Supply chain management spans the movement and storage of raw materials, work-in-process work -in-process inventory, and finished goods from point of origin to point of  consumption. Another definition is provided by the APICS Dictionary, which w hich defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of o f creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally." SCM draws heavily from the areas of o f operations management, logistics, procurement, and information technology, and strives for an integrated approach.