Which of the following is a type of pricing tactic?

Dynamic pricing is indeed a recognized pricing tactic used by businesses to optimize sales and revenues based on real-time market demand and various other factors. This approach allows companies to adjust prices for their products or services based on current market conditions, competitor pricing, customer behavior, and even time factors such as peak and off-peak periods. It’s commonly utilized in industries such as travel and hospitality, e-commerce, and entertainment, where demand can fluctuate significantly.

The unique advantage of dynamic pricing lies in its flexibility, which helps businesses adapt to changing market dynamics quickly and maximize profitability by capturing consumer willingness to pay at any given moment. This strategy leverages data analytics and algorithms to implement pricing changes, which can lead to more strategic pricing decisions compared to static methods.

Cost-plus pricing, while a valid pricing method, focuses on adding a predetermined profit margin to the cost of a product, and does not account for market-driven pricing dynamics. Authority-based pricing does not represent a commonly used or recognized pricing tactic. Service pricing refers more to how services are evaluated and priced but lacks the systematic function of dynamic pricing in responding to market variables.