Dynamic pricing is a way for retailers to make pricing as flexible and individual as possible for each product and customer. As a result, consumers increasingly face the confusing situation of paying different prices for the same goods and services online. This is one of the reasons why dynamic pricing is also known as price differentiation or price discrimination.
At the same time, even before digitalisation, there were many exceptions to the principle of a single price per product and customer. However, digital has been the catalyst for a wide range of new possibilities for price variation. When this variation is based on individual customer profiles, it becomes not just dynamic pricing, but personalised pricing.
Companies' current practices can best be described as experimental. The most common forms of dynamic pricing today often involve changing prices without taking individual customer profiles into account. More sophisticated price discrimination is often too costly for companies at present, or they lack the necessary expertise. However, the trend towards individualised pricing is expected to continue in the future.