Revenue Management Systems Based on Dynamic Pricing
This chapter highlights in a business-economic perspective how dynamic pricing represents the company’s ability to sell each unit of a product/service at the maximum price that the potential customer is willing to pay at a specific time and place.
Dynamic pricing is one of the two levers of the RM systems to support business in the maximization of the profitability.
Focusing on the short-term management link between technical efficiency and profitability and on the important role assumed by the capacity of the business to predict the behavior of potential customers, the author describes the different dynamic pricing strategies and models and completes the chapter by analyzing the implications of dynamic-pricing-RM systems on the business decision-making processes in order to maximize the profitability.
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