How retailers are using dynamic pricing based on consumer behavior

Article excerpt

CBS California Investigates tested shopping carts at three randomly selected major retailers and discovered prices fluctuate significantly over weeks, making it hard for consumers to time their purchases strategically. The investigation found that dynamic pricing, algorithms that adjust prices based on consumer behavior, inventory levels, and demand, creates an opaque marketplace where the same item costs different amounts depending on when you check. Retailers defend the practice as responsive to market conditions, but consumer advocates worry it exploits shoppers who can't predict the best moment to buy. The findings raise questions about price transparency and fairness in e-commerce.