CS6320:  SW Engineering of Web Based Systems

 

e-Business: Dynamic Pricing Model

Some Features of the Dynamic Pricing Model

  • A selectively popular e-commerce model : Priceline
  • 2 basic models - Name your Price or Comparison Price Models

 

Name Your Price Model

  • Allows person to name their price for the product (travel, homes, autos, etc).
  • Concept here is that customer says what they are willing to pay and then sellers "register" with site and agree to customer terms.

Example: Priceline.com

  • most famous of this type of model.
  • Patented business mechanism called "demand-collection system" is a shopping bot that takes customers bids to the Priceline partners to see whether they will accept the prices.
  • mostly for airline tickets though have tried to expand.

Priceline entrance page

 

Comparison Pricing Model :

  • Allows customer to poll a variety of merchants and find desired produt or service at lowest price

example: nexttag.com

nexttag.com entrance page

 

example: shopping.com

shopping.com entrance page

Demand-Sensitive Pricing Model

  • Concept is as more people buy a product at this site, the cheaper it will become as it is like buying in volume/bulk.

example: BottomDollar.com

BottomDollar.com entrance page

Bartering Model

  • Concept here is when people or companies trade services or products.

example: itex.com

itex.com entrance page

 

© Lynne Grewe