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250 words agree or disagree to each questions

Dynamic pricing is defined as a “strategy in which product prices continuously adjust, sometimes in a matter of minutes, in response to real-time supply and demand” (Khan, 2015). Many businesses use dynamic pricing to maximize their revenue while identifying the supply and demand of a product. It is believed that through dynamic pricing, businesses can save money in the long run, and brands can strengthen their brand value (Khan, 2015). Some of the common users of dynamic pricing are Walmart and Amazon (Khan, 2015). Both businesses use dynamic pricing to their advantage and have seen a huge spike in their growth. While Walmart’s “global sales grew by 30% in 2013” and “Amazon also saw a 27.2% increase in revenue” (Khan, 2015). 

Based on the video’s information for this week, Excel Solver can be used to provide a baseline of how the business can profit by coming up with a price on a product. I think when considering Excel Solver, the price placed on a product can be considered ethical. However, businesses do not just rely on software’s but rather take into account different locations, time of year, type of product used during that time of year, and the popularity of the product based on their target audience. All of these factors play a huge part in deciding for a product’s price. According to Jawad Khan, “Walmart uses dynamic pricing and changes its product prices almost 50,000 times a month” (2015). Walmart can do this by understanding their competition, the sales of their products, and having a huge customer base. Excel Solver helps with dynamic pricing and pricing analytics by providing management with optimal solutions. These solutions can only be done by having access to good software to mitigate human error. If one were to gauge pricing based on their assumptions. This could lead to either too high or too low a product price; which can result in unethical business practice.



Khan, J. (2015). The Concept of Dynamic Pricing. What is Dynamic Pricing & How Does It Affect Ecommerce? Business.com. Retrieved from: https://www.business.com/articles/what-is-dynamic-pricing-and-how-does-it-affect-ecommerce/


According to Bell P and Zaric G, Dynamic Pricing is one of the three revenue management (RM) approaches to calculate pricing. It’s a tactic by which many businesses use to change the price of products based on supply and demand in real time. To make a reasonable margin of profit, many businesses are now targeting people based on their online behavior, like it’s shown in the video above. Businesses will adjust their prices after various observation to maintain their revenues.

 As stated in this week’s material, if the product is in low demand, the business will reduce the price in order to sell the product they have in their inventory and avoid having anything stored in their warehouse. On the other hand, If the product is in high demand, they would increase the price to earn higher revenue. This way of adjusting prices over time in response to differences between actual sales and planned sales provide them with a way of maintaining revenues while using prices to control their inventory to zero over the selling horizon. The new prices can be calculated so that revenue over the remainder of the sales horizon is maximized. (Bell & Zaric, 2013)

Since dynamic pricing allow businesses to charge customers as much as they are willing to pay for a good or service, some of the ethical considerations that I can think of is that it can make customers less loyal to a business and can increase competition. Per Professor Dominique Hanson in the video, he states that because companies retain cookies, customers looking for a better price might end up buying product at a high-end site because those companies maintain their record and will set customers price higher and that can irritate them. Once angry and upset, customer would not trust the business and they will go somewhere else, where they feel appreciated. (KNBC, 2012).

Excel can help with dynamic pricing and pricing analytics to provide the opportunity to construct useful pricing model, determine the price that maximize the profit and benefits over a period of time, give power to managers to decide what’s cost beneficial when they use the “What-if Analysis” in all scenarios for example. Additionally, Excel has numerous consistent formulas that can be used and last but not least, it has visual explanation like chart and dashboard that can help in understanding both type of pricing.


Grace G.


  1. Bell, P., & Zaric, G (2013). Analytics for managers: With Excel. New York, NY: Routledge
  2. Team EA (2021). How machine learning is changing the world of dynamic pricing. Retrieved from https://expressanalytics.com/blog/how-machine-learning-is-changing-the-world-of-dynamic-pricing/
  3. KNBC (2012). Dynamic Pricing in Online Shopping. Retrieved from https://www.youtube.com/watch?v=UKwOzEy394k