A key factor in the movement to dynamic pricing is the buyer experience itself. In their book The Experience Economy,1 authors Pine and Gilmore argue that the differentiation based on traditional factors such as price, customer service, goods, etc., is less apparent on the Internet, and that user experience is now the critical factor leading to repeat purchases. Auction sites including eBay, eWanted, and Mercata have shown the highest visitor time, and buyers and sellers in the B2B space require the same fast selection of the optimal solution at the very best price. Exchanges with dynamic pricing and the largest apparent inventory, especially "distressed" and "limited supply" inventory, provide this. Implementing dynamic pricing applications helps businesses decrease costs and increase revenues by creating more efficient markets. These applications also help companies deliver better Web experiences by providing more excitement, an increased sense of community, and a higher degree of personalization.
1 B. Joseph Pine II and James H. Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage (Harvard Business School Press, 1999).