ABSTRACT
This chapter highlights the areas of this new digital era of pricing that have had significant impacts on consumer behavior. It examines different pricing strategies, how they have been implemented using digital technologies, and how consumers have been affected by them. The concept of consumer value is how much a consumer is willing to pay for a product or service. It is operationalized as the maximum willingness-to-pay (WTP) or the most that a consumer would pay for a product. In the digital economy, the primary focus is on first degree price discrimination (FDPD) which has traditionally been very difficult to implement, particularly in retail settings. The basic idea behind dynamic pricing is that the company changes its prices over time to reflect different supply/demand conditions. Dynamic pricing may or may not be FDPD as the different prices at different points in time could be customized or offered to all customers.
