Dynamic Pricing

Also known as: Real-time Pricing, Variable Pricing, Surge Pricing

Strategy where prices automatically adjust in real time based on supply, demand, competition, or consumer behavior.

Dynamic Pricing is a pricing strategy where prices of products or services automatically adjust in real time or in response to changes in: demand, available inventory, competitor prices, consumer behavior (device, history, session time), or market conditions.

It is prevalent in e-commerce (Amazon adjusts millions of prices daily), ride-hailing (Uber's surge pricing), airlines, hotels, and energy. With AI, dynamic pricing becomes more sophisticated: models can anticipate demand changes and adjust prices preemptively.

In market research, studying consumer response to dynamic pricing—including fairness and trust perceptions—is an important emerging area, especially in LATAM where price transparency is a strong cultural expectation.