Dynamic pricing in retail: opportunities and limitations
Abstract. One of the key strategic decisions of the company is the development of its pricing policy, on the success of which the main economic indicators of the company depend in the short and long term. Traditional pricing methods in modern dynamic conditions have significant disadvantages, as they are slow to respond to changes in the internal and external environment of the company. Based on foreign and domestic experience, the article considers theoretical and practical aspects of the introduction of dynamic pricing in various sectors of the economy, in particular in retail trade. The differences between remote pricing and price discrimination and personalized pricing are noted. The goals and objectives of using remote pricing by economic entities are defined. The prospects of using dynamic pricing in retail trade related to the use of electronic price tags are analyzed. The potential possibilities of the method and the limitations (technical, organizational, legal) that traditional retail companies experience when using remote pricing are studied. The study concluded that dynamic pricing will become one of the most sought-after business solutions in the retail sector in the comingyears, along with the service sector and online commerce.
Keywords: dynamic pricing, retail, online trade, electronic price tag.
Highlights:
- dynamic pricing allows you to significantly increase the revenue and profits of companies in different sectors of the economy;
- the use of the method in traditional retail trade has a number of limitations of various kinds;
- new technological solutions make it possible to significantly eliminate limitations and fully realize the potential of dynamic pricing as a modern element of pricing policy.
Stanislav G. Kholmovsky - Baikal State University, Irkutsk, Russia