Dynamic Pricing Allows a Website to Use the Personal Information

question 200

Multiple Choice

Dynamic pricing allows a website to use the personal information collected on a customer, such as income or location, to individualize the price of a product for each customer. Economists consider this type of pricing an example of:

• A) consumer sovereignty.
• B) producer sovereignty.
• C) price discrimination.
• D) price gouging.

---

Definitions:

Conventional Data Management

Traditional methods of collecting, storing, and processing data, often involving manual procedures or straightforward digital systems.

Data Mining Software

Computer programs designed to process large datasets to identify patterns, trends, and relationships.

Customer Retention

The activities and actions companies take to reduce the number of customer defections and to keep customers loyal to the brand or company.

Churn

The number of consumers who stop using a product or service, divided by the average number of consumers of that product or service.