Question

The Vitamin Shoppe sells natural vitamins and supplements. Product prices are adjusted frequently to meet the needs of individual customers. For example, long-time customers receive discounts. This strategy is most likely an example of _______________

Answer 1

Answer:

Dynamic Pricing

Explanation:

Dynamic pricing is the price set to reflect the changes in environment factors and factors that are included in the company's corporate policies. In the above scenario, the company has set a different price in different scenario. The normal customer who visits the store fewer times are not given any discounts however the permanent customer is given discount. This is because of the changes in customer loyalty factor. The company is charging different in different scenarios which means it is pursuing Dynamic Pricing strategy.