Charlotte J. 2024 | BASIS Independent Brooklyn
- Project Title: The Implementation of Dynamic Pricing
- BASIS Independent Advisor: Mr. Mike Lee
- Internship Location: A major ticketing company
- Onsite Mentor: Anonymous
Dynamic pricing, well defined by an anonymous focus group member is: “a pricing strategy that businesses use for their services or products to optimize revenue based on external factors.” More specifically, it is the practice of charging different people different prices for the same goods based on things like demand, time of purchase, and customer characteristics (the external factors) and it is prevalent in many industries, including concert ticketing, but actually originated in the aviation industry. Dynamic pricings relevancy is also increasing (shown by Wendy’s decision to implement it starting in 2025!) which was a big part of me choosing this topic. My project explores the concept of dynamic pricing, its utilization in ticketing platforms for concerts compared to airlines, and the ethical considerations/implications of the practice on consumers. I’ve reviewed existing literature and completed interviews to affirm my research and created a survey sent out to understand a consumer's understanding and perspective on the subject. I believe that the findings of this research are important for increasing the awareness and understanding of dynamic pricing practices, and encouraging consumers to make more informed decisions. The ethical considerations play a crucial role in dynamic pricing practices, as they impact consumer trust and perception of fairness. By exploring the ethical implications of dynamic pricing in ticketing platforms for concerts compared to airlines, my research contributes to the ongoing discussion on customer rights and business ethics. Understanding these implications is not only important for consumers but also for business, as it can help them develop more ethical and sustainable pricing strategies.