Dynamic Pricing in Different Industries

Dynamic pricing describes a pricing strategy to set up highly flexible prices for products and services. Dynamic pricing algorithms adjust prices easily and frequently based on collected consumer data and market information. Dynamic pricing is used in various industries and has the potential to magnify revenues while offering multiple other benefits for companies. This paper analyzes the relevance and importance of dynamic pricing in sports, entertainment, leisure-time activities, hospitalities, and public transportation. For every industry, selected applications, and examples are analyzed. Finally, this paper investigates if dynamic pricing is fair and how customers respond to frequent price changes

Uma análise sobre antecedentes das intenções comportamentais de torcedores de futebol em Pernambuco

Study objective: to analyze the influence of being a member, the sociodemographic variables and the perception of the ticket price on the behavioral intentions of soccer supporters of clubs in Pernambuco.Methodology/Address: quantitative approach study, observational type. The sample was composed of 196 fans of the clubs of Pernambuco. The instrument used is composed of the dimensions: being a member, sociodemographic profile, perception of ticket prices and behavioral intentions. The variables were measured from categorical, ordinal and scalar measures. The items corresponding to behavioral intentions were measured using a Likert-type multi-item scale with seven alternatives. Data were tabulated and analyzed in SPSS 24.0 software, descriptive analyses and a multiple linear regression were used to assess the statistical significance of the antecedents.Originality/Relevance: The analysis of the behavioral intentions of their fans is paramount for clubs. Recently it is noticeable a decline in the presence of fans in the stadium and involvement with the club, therefore, it becomes valid a survey on the influence of membership, sociodemographic profile of spectators and ticket prices on behavioral intentions, added to the scarcity of investigations about the theme in Brazil. Main results: The global model was valid, influencing behavioral intentions in 20.8%. About the dimensions, the sociodemographic profile did not statistically explain its influence, however the being a member and the perception of the ticket price showed significance (p < 0.05).Theoretical/methodological contributions: It was proven that being a member and perceived ticket price constitute dimensions that directly affect behavioral intentions. Objetivo del estudio: analizar la influencia de la condición de socio, de las variables sociodemográficas y de la percepción del precio de las entradas en las intenciones de comportamiento de los hinchas de los clubes de fútbol de Pernambuco.Metodología/enfoque: estudio de enfoque cuantitativo, de tipo observacional. La muestra estaba compuesta por 196 seguidores de los clubes de Pernambuco. El instrumento utilizado está compuesto por las dimensiones: ser socio, perfil sociodemográfico, percepción del precio del billete e intenciones de comportamiento. Las variables se midieron a partir de medidas categóricas, ordinales y escalares. Los ítems que corresponden a las intenciones de comportamiento se midieron a través de la escala de tipo Likert de varios ítems con siete alternativas. Los datos se tabularon y analizaron en el programa informático SPSS 24.0. Se utilizaron análisis descriptivos y una regresión lineal múltiple para evaluar la significación estadística de los antecedentes.Originalidad/Relevancia: El análisis de las intenciones de comportamiento de sus seguidores es primordial para los clubes. Recientemente se nota una disminución de la presencia de los hinchas en el estadio y del involucramiento con el club, por lo tanto, se hace válida una encuesta sobre la influencia de ser socio, el perfil sociodemográfico de los espectadores y el precio de las entradas en las intenciones de comportamiento, sumado a la escasez de investigaciones sobre el tema en Brasil. Principales resultados: El modelo global fue válido, influyendo en las intenciones de comportamiento en un 20,8%. En cuanto a las dimensiones, el perfil sociodemográfico no explica estadísticamente su influencia, sin embargo el ser socio y la percepción del precio del billete mostraron significación (p < 0,05).Aportaciones teóricas/metodológicas: Se comprobó que el hecho de ser socio y la percepción del precio del billete constituyen dimensiones que afectan directamente a las intenciones de comportamiento.Objetivo do estudo: analisar a influência do ser sócio, das variáveis sociodemográficas e a percepção do preço dos ingressos nas intenções comportamentais de torcedores dos clubes de Futebol de Pernambuco.Metodologia/Abordagem: estudo de abordagem quantitativa, do tipo observacional. A amostra foi composta por 196 torcedores dos clubes de Pernambuco. O instrumento utilizado é composto pelas dimensões: ser sócio, perfil sociodemográfico, percepção do preço dos ingressos e intenções comportamentais. As variáveis foram mensuradas a partir de medidas categóricas, ordinais e escalares. Os itens que correspondem às intenções comportamentais foram medidos através da escala multi-itens do tipo Likert com sete alternativas. Os dados foram tabulados e analisados no software SPSS 24.0, utilizou-se análises descritivas e uma regressão linear múltipla para avaliar a significância estatística dos antecedentes.Originalidade/Relevância: A análise das intenções comportamentais de seus torcedores é primordial para os clubes. É perceptível um declínio na presença de torcedores no estádio e envolvimento com o clube, logo, torna-se válido um levantamento sobre a influência do ser sócio, perfil sociodemográfico dos espectadores e preço dos ingressos nas intenções comportamentais, somada a escassez de investigações acerca da temática no Brasil. Principais resultados: O modelo global foi válido, influenciando as intenções comportamentais em 20,8%. Acerca das dimensões, o perfil sociodemográfico não exerceu nenhuma influência estatisticamente significativa, entretanto o ser sócio e a percepção do preço dos ingressos apresentaram significância estatística (p < 0,05).Contribuições teóricas/metodológicas: Comprovou-se que o ser sócio e a percepção do preço dos ingressos constituem-se em dimensões que afetam diretamente as intenções comportamentais

A Dynamic Ticket Pricing Approach for Soccer Games

This study proposes a mathematical model of dynamic pricing for soccer game tickets. The logic behind the dynamic ticket pricing model is price change based on multipliers which reflect the effects of time and inventory. Functions are formed for the time and inventory multipliers. The optimization algorithm attempts to find optimal values of these multipliers in order to maximize revenue. By multiplying the mean season ticket price (used as the reference price) by the multipliers, dynamic ticket prices are obtained. Demand rates at different prices are needed for the model, and they are provided by a unique fuzzy logic model. The results of this model are compared with real data to test the model’s effectiveness. According to the results of the dynamic pricing model, the total revenue generated is increased by 8.95% and 0.76% compared with the static pricing strategy in the first and second cases, respectively. The results of the fuzzy logic model are also found to be competitive and effective. This is the first time a fuzzy logic model has been designed to forecast the attendance of soccer games. It is also the first time this type of mathematical model of dynamic pricing for soccer game tickets has been designed

A dynamic ticket pricing approach for soccer games

This study proposes a mathematical model of dynamic pricing for soccer game tickets. The logic behind the dynamic ticket pricing model is price change based on multipliers which reflect the effects of time and inventory. Functions are formed for the time and inventory multipliers. The optimization algorithm attempts to find optimal values of these multipliers in order to maximize revenue. By multiplying the mean season ticket price (used as the reference price) by the multipliers, dynamic ticket prices are obtained. Demand rates at different prices are needed for the model, and they are provided by a unique fuzzy logic model. The results of this model are compared with real data to test the model's effectiveness. According to the results of the dynamic pricing model, the total revenue generated is increased by 8.95% and 0.76% compared with the static pricing strategy in the first and second cases, respectively. The results of the fuzzy logic model are also found to be competitive and effective. This is the first time a fuzzy logic model has been designed to forecast the attendance of soccer games. It is also the first time this type of mathematical model of dynamic pricing for soccer game tickets has been designed. © 2017 by the authors