hi there when we consider the ways in which businesses set the price of their products and services an increasingly popular method of doing this is what's known as dynamic pricing so let's spend a couple of minutes explaining what dynamic pricing is all about the key thing to remember with dynamic pricing is that it's all about flexibility the price changes and it changes on the basis of changes in factors particularly relating to market demand so dynamic as the word implies suggest changing prices rather than ones which are fixed for perhaps a day a week a month or longer well there are various factors that actually help determine what is the price that is dynamic how it changes for example it could be the level of demand for the product or services compared with even the availability of supply it could be where the customer is located the time of day or night the day of the week and also factors such as what prices competitors are known to be charging and where the customer is at in terms of their buying journey whether they've been searching for something for a long time whether they need to buy it now rather than be able to consider their purchase over time lots of these different factors can be used to construct the logic that determines the dynamic price but what dynamic pricing really needs is data so a key link to make between price dynamic pricing and business decision making is big data this capture of billions of pieces of transactional data every day every hour around the world in different sorts that enables computer programs algorithms to turn that data into a price with the decision and the aim of the price set by the business and typically dynamic pricing aims to maximize revenue well there are lots of industries that make use of dynamic pricing and almost certainly you would have come across it even if you didn't know that you were being priced dynamically when you try to search for a hotel depending on the time of day the day of the week and of course the availability of demand and supply the price will change and that's often the case also in transportation systems like like trains and perhaps the best example of dynamic pricing although a bit somewhat controversial at times is uber the car or the taxi sharing app that uses a method of dynamic pricing called surge pricing surge as in the price goes up in certain circumstances particularly when demand for taxes is particularly high the retail sector is also making increasing use of dynamic pricing whereby the ticket price is actually demonstrated and shown electronically based around a whole series of factors around perhaps weather demand for that product whether a product is in is in short supply so lots of examples there of industries markets where dynamic pricing is increasingly being used as part of the pricing part of the market mix hopefully that's been a useful introduction therefore to dynamic pricing you