The Practice of Using Dynamic Pricing Was Started in the 1980’s

question 54

Multiple Choice

The practice of using dynamic pricing was started in the 1980’s by American Airlines as an effort to compete with a now out-of-business discounter airline, People’s Express. Dynamic pricing then moved to other industries, including hotels and car rental companies, but only became popular when e-commerce arrived.
You are a consultant to a number of different organizations that use dynamic pricing, including American Airlines, St. Louis Cardinals, Coca Cola, and Marriott International. You are advising your clients of the use of dynamic pricing. Here are some questions that they have raised:
-What is dynamic pricing?

• A)A pricing approach that uses analytics software to improve demand forecasting
• B)A pricing approach in which the price of an item changes based on the demographics of individual customers
• C)A pricing approach that adjusts prices based solely on fluctuations in competitor's prices
• D)A pricing approach where the price of an item changes frequently based on complex algorithms

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Definitions:

Visual Basic

A programming language and environment developed by Microsoft, designed for the easy creation of Windows-based applications.

Pseudocode

A notational system for algorithms that combines elements of programming languages and natural language, intended to be readable by humans.

Error Handling

The part of a problem statement where programmers describe what the program should do if the input data is invalid or just gibberish.

Source Code

Source code is the set of instructions and statements written by programmers in human-readable programming languages that are compiled or interpreted to create executable programs.