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The Concept of Amazon - Case Study Example

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The paper "The Concept of Amazon" states that Amazon is a stellar company, hundreds of thousands of products are sold on Amazon each day. Amazon has been using dynamic pricing for the company. Dynamic pricing refers to changes in price according to demand for the product…
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The Concept of Amazon
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Extract of sample "The Concept of Amazon"

Dynamic pricing has several advantages; it can fetch a lot of profit. In the case of Amazon, the Star Wars DVD was bought by several customers at USD 70 and many bought it for USD 84 also. At USD 70 the company made less profit but at USD 84 it made much more profit.

Dynamic pricing can help boost the profits of a company but at the same time, it has its cons too. The biggest con is that the customers who bought the DVD at USD 84 would feel heated and may never return for future transactions and this could severely affect the company.

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