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

question 36

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:
-Which of the following statements about dynamic pricing is false?

• A)A Revenue Optimization System is an industry example of dynamic pricing
• B)Dynamic pricing is a pricing strategy where the price of a product changes frequently based on complex algorithms
• C)Prices can go down as well as up
• D)Using dynamic pricing,sellers and service providers monitor changes in prices of competitors' goods

Grasp the significance and use of flowcharts in diagramming processes.

Identify and explain various distribution types, including normal and standard normal distributions.

Comprehend the calculation and interpretation of standard deviation.

Recognize the importance of cost-to-benefit analysis in quality management.