E-fulfillment White Papers

Dynamic Pricing Models: Opportunity for Action

• Tags:
• e-fulfillment,
• models,
• auctions,
• pricing models

Overview Replacing dynamic dominant static pricing models with dynamic pricing models in many markets is essential for maximizing revenue. Static pricing models, such as subscriptions, coupon-based price discrimination, and market segmentation are crucial for mass marketing and mass distribution of the industrial economy. However, dynamic pricing models, such as one buyer-one seller relationships, reverse auctions, and forward auctions, are necessary to building an ability to adapt into product and service pricing. The research of the Cap Gemini Ernst & Young’s Center for Business Innovation in this area has helped to create a methodology that companies can apply to themselves to determine what types of dynamic pricing model would best support their external environment and internal business strategy.

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