With ________ pricing, also known as individualized pricing, companies charge different prices based on the type of customer, the day of the week, and the level of demand.

• A. Fixed
• B. Cumulative
• C. Dynamic
• D. Bundled

Answer: (C)

Dynamic pricing is the practice of changing prices based on who the customer is, when they buy, and how much demand there is at the moment. This is exactly what’s described when prices vary by customer type, day of the week, and level of demand, which is why it’s also called individualized pricing. By adjusting prices in real time to reflect willingness to pay and scarcity, sellers can capture more value. Fixed pricing would set one price for everyone, bundled pricing would price a package of products together, and cumulative pricing typically relates to discounts based on purchase history or quantity rather than current demand.