Dynamic pricing is the opposite of what one might call static
pricing. Dynamic means change and internet companies change their prices
according to information collected from an online shopper. When shopping
online, internet companies can generally see what computer a person is using,
where the computer is located, what other websites the computer user has
visited, what action a computer user takes after visiting a website, and how
fast someone is buying something.
Ever wondered why if you look up an item on Amazon.com, the
same item all of a sudden appears on
advertisements on other internet pages?
If you are a fast buyer using the same computer, the chance is
that you will pay a higher price than a shopper who looks around for the best
price.
As long as a shopper uses the same IP address, most often from the same
home, online businesses know what they need to know about a person in order to
get the most money.
