Final Answer:
The given statement "Dynamic pricing is the tactic of varying price over time. The success of dynamic pricing also requires the presence of different customer segments, with some willing to pay a higher price for the product" is a) True
Step-by-step explanation:
Dynamic pricing involves adjusting prices based on various factors, including demand, supply, and market conditions. The success of dynamic pricing is indeed dependent on the existence of different customer segments, where some are willing to pay higher prices for a product. This strategy allows businesses to optimize their pricing strategies and maximize revenue by catering to the varying preferences and willingness to pay among different customer groups.
Dynamic pricing is commonly used in industries such as e-commerce, travel, and entertainment, where demand fluctuates. By identifying and targeting specific customer segments willing to pay more, businesses can implement dynamic pricing strategies to capitalize on market dynamics and enhance overall profitability. This approach not only benefits the business but also provides consumers with more personalized pricing experiences based on their preferences and behaviors.
In conclusion, the statement is true. Dynamic pricing is the tactic of varying prices over time, and its success is closely tied to the presence of diverse customer segments with varying levels of willingness to pay.