Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30840
Potentials and Influencing Factors of Dynamic Pricing in Business: Empirical Insights of European Experts

Authors: Christopher Reichstein, Ralf-Christian Härting, Martina Häußler


With a continuously increasing speed of information exchange on the World Wide Web, retailers in the E-Commerce sector are faced with immense possibilities regarding different online purchase processes like dynamic price settings. By use of Dynamic Pricing, retailers are able to set short time price changes in order to optimize producer surplus. The empirical research illustrates the basics of Dynamic Pricing and identifies six influencing factors of Dynamic Pricing. The results of a structural equation modeling approach show five main drivers increasing the potential of dynamic price settings in the E-Commerce. Influencing factors are the knowledge of customers’ individual willingness to pay, rising sales, the possibility of customization, the data volume and the information about competitors’ pricing strategy.

Keywords: E-Commerce, Empirical Research, potentials, influencing factors, experts, dynamic pricing (DP)

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 918


[1] M. Schleusener, “Erlösmodelle im Internet – Neue Schnelligkeit im Pricing,” in Digitalisierung des Handels mit ePace: Innovative E-Commerce-Geschäftsmodelle und digitale Zeitvorteile, G. Heinemann, K. Haug, Eds. Wiesbaden: Springer Fachmedien, 2013, pp. 153–169.
[2] E. Garbarino, O. F. Lee, “Dynamic pricing in internet retail: Effects on consumer trust,” Psychology and Marketing, vol. 20, no. 6, pp. 495–513, 2003.
[3] J. Goensch, R. Klein, C. Steinhardt, “Dynamic Pricing – State-of-the-Art,” Zeitschrift für Betriebswirtschaft: Ergänzungsheft "Operations Research in der Betriebswirtschaft", vol. 3, pp. 1–40, 2009.
[4] R. Klein, C. Steinhardt, Revenue Management: Grundlagen und mathematische Methoden. Heidelberg, Berlin: Springer, 2008.
[5] E. Garbarino, S. Maxwell, “Consumer response to norm-breaking pricing events in e-commerce,” Journal of Business Research, vol. 63, no. 9-10, pp. 1066–1072, 2010.
[6] K. L. Haws, W. O. Bearden, “Dynamic Pricing and Consumer Fairness Perceptions,” Journal of Consumer Research, vol. 33, no. 3, pp. 304–311, 2006.
[7] T. J. Richards, J. Liaukonyte, N. A. Streletskaya, “Personalized pricing and price fairness,” International Journal of Industrial Organization vol. 44, pp. 138–153, 2015.
[8] T. Fernandes, A. Calamote, “Unfairness in consumer services: Outcomes of differential treatment of new and existing clients,” Journal of Retailing and Consumer Services, vol. 28, pp. 36–44, 2016.
[9] Y. Jiang, J. Shang, Y. Liu, J. May, “Redesigning promotion strategy for e-commerce competitiveness through pricing and recommendation,” International Journal of Production Economics, vol. 167, pp. 257–270, 2015.
[10] L. Moreno-Izquierdo, A. Ramón-Rodríguez, J. Perles Ribes, “The impact of the internet on the pricing strategies of the European low cost airlines,” European Journal of Operational Research, vol. 246, no. 2, pp. 651–660, 2015.
[11] M. Möhring, C. Koot, R. Schmidt, G. Walsh, “Big Data – neue Möglichkeiten im E-Commerce,” Wirtschaftsinformatik & Management, vol. 5, no. 2, pp. 48–56, 2013.
[12] R. Schmidt, M. Möhring, “Strategic Alignment of Cloud-Based Architectures for Big Data,” in 17th IEEE International Enterprise Distributed Object Computing Conference Workshops, E. Baghe et al., Eds. Los Alamitos: Conference Publishing Services, 2013, pp. 136–143.
[13] H. Simon, M. Fassnacht, Preismanagement: Strategie, Analyse, Entscheidung, Umsetzung, 3rd ed. Wiesbaden: Gabler, 2009.
[14] S. B. Hwang, S. Kim, “Dynamic Pricing Algorithm for E-Commerce,” in Advances in Systems, Computing Sciences and Software Engineering: Proceedings of SCSS 2005, T. Sobh, K. Elleithy, Eds. Springer Netherlands, 2006, pp. 149–155.
[15] B. Skiera, M. Spann, U. Walz, “Erlösquellen und Preismodelle für den Business-to-Consumer-Bereich im Internet,” Wirtschaftsinformatik, vol. 47, no. 4, pp. 285–293, 2005.
[16] H. Simon, Preisheiten: Alles, was Sie über Preise wissen müssen, 2nd ed. Frankfurt am Main: Campus-Verlag, 2015.
[17] J. Mikians, L. Gyarmati, V. Erramilli, N. Laoutaris, “Detecting price and search discrimination on the Internet,” in Proceedings of the 11th ACM Workshop on Hot Topics in Networks, S. Kandula, Ed. New York, ACM, 2012, pp. 1–6.
[18] K. T. Talluri, G. J. van Ryzin, “The theory and practice of revenue management,” International series in operations research & management science, vol. 68, New York: Springer, 2005.
[19] W. Elmaghraby, P. Keskinocak, “Dynamic pricing in the presence of inventory considerations: Research overview, current practices, and future directions.” IEEE Engineering Management Review, vol. 31, no. 4, pp. 1287–1309, 2003.
[20] J. Tschunko, Dynamic Pricing: Die Individualisierung von Preisen im E-Commerce, Wien: AK Wien, 2015.
[21] A. Taverna, Big Data and Differential Pricing, Washington: The White House, 2015.
[22] Q. Meng, X. Han, D. Yu, “An e-commerce dynamic pricing strategy for C2C and B2C modes,” in IEEE International Conference on Information Management and Engineering, vol. 2, D. Wen, J. Zhou, Eds. Beijing: IEEE Press, 2010, pp. 467–470.
[23] Verband der Hochschullehrer für Betriebswirtschaft e.V,, last accessed 2017/02/13.
[24] O. Hinz, I. Horn Hann, M. Spann, “Price Discrimination in E-Commerce?: An Examination of Dynamic Pricing in Name-Your-Own Price Markets,” MIS Quarterly, pp. 81–98, 2011.
[25] N. Vulkan, V. Shem-Tov, “A note on fairness and personalised pricing,” Economics Letters, vol. 136, pp. 179–183, 2015.
[26] F. Ancarani, “Pricing and the Internet,” European Management Journal, vol. 20, no. 6, pp. 680–687, 2002.
[27] A. V. den Boer, “Dynamic pricing and learning: Historical origins, current research, and new directions,” Surveys in Operations Research and Management Science, vol. 20, no. 1, pp. 1–18, 2015a.
[28] W. Zhao, Y.-S. Zheng, Y. “Optimal Dynamic Pricing for Perishable Assets with Nonhomogeneous Demand,” Management Science, vol. 46, no. 3, pp. 375–388, 2000.
[29] A. Sahay,, last accessed 2017/02/15.
[30] A. Hannak, G. Soeller, D. Lazer, A. Mislove, C. Wilson, “Measuring Price Discrimination and Steering on E-commerce Web Sites,” in IMC'14 Proceedings of the 2014 Conference on Internet Measurement Conference, New York; ACM, 2014. pp. 305–318.
[31] R. T. Rust, K. Na, M. Wedel, T. S. Chung, “Personalization Technologies,” in Supply chain management, marketing and advertising, and global management. The handbook of technology management, vol. 2, H. Bidgoli, Ed. Hoboken, NJ: Wiley, 2010, pp. 473–481.
[32] A. V. den Boer, “Tracking the market: Dynamic pricing and learning in a changing environment,” European Journal of Operational Research, vol. 247, no. 3, pp. 914–927, 2015b.
[33] L. Zhao, P. Tian, L. Xiangyong, “Dynamic pricing in the presence of consumer inertia,” Omega, vol. 40, no. 2, pp. 137–148, 2012.
[34] M. Wedel, P. K. Kannan, “Marketing Analytics for Data-Rich Environments,” Journal of Marketing, vol. 80, no. 6, pp. 97–121, 2016.
[35] B. Li, F.-F. Tang, “Online pricing dynamics in Internet retailing: The case of the DVD market,” Electronic Commerce Research and Applications, vol. 10, no. 2, pp. 227–236, 2011.
[36] K. Sato, K. Sawaki, “A continuous-time dynamic pricing model knowing the competitor’s pricing strategy,” European Journal of Operational Research, vol. 229, no. 1, pp. 223–229, 2013.
[37] C. S. M. Currie, R. C. H. Cheng, H. K. Smith, “Dynamic pricing of airline tickets with competition,” Journal of the Operational Research Society, vol. 59, no. 8, pp. 1026–1037, 2008.
[38] I. E. Allen, C. A. Seaman, “Likert scales and data analyses,” Quality Progress, vol. 40, pp. 64–65, 2007.
[39] C. Schmitz,, last accessed 2017/02/21.
[40] I. Newman, Qualitative-quantitative research methodology: Exploring the interactive continuum, Carbondale: SIU Press,1998.
[41] eurostat,, last accessed 2017/02/22.
[42] R. Weiber, D. Mühlhaus, Strukturgleichungsmodellierung: Eine anwendungsorientierte Einführung in die Kausalanalyse mit Hilfe von AMOS, SmartPLS und SPSS, 2nd ed. Berlin: Springer Gabler, 2014.
[43] SmartPLS GmbH,, last accessed 2017/02/25.
[44] W. W. Chin, “The partial least squares approach to structural equation modeling,” Modern methods for business research, vol. 295, pp. 295–336, 1998.
[45] C. M. Ringle, M. Sarstedt, D. Straub, “A critical look at the use of PLS-SEM,” MIS Quarterly, vol. 36, 2012.
[46] P. K. Kannan, P.K., Kopalle, “Dynamic Pricing on the Internet: Importance and Implications for Consumer Behavior,” International Journal of Electronic Commerce, vol. 5, no. 3, pp. 63–83, 2001.
[47] V. Jayaraman, T. Baker, “The internet as an enabler for dynamic pricing of goods,” IEEE Transactions on Engineering Management, vol. 50, no. 4, pp. 470–477, 2003.