Dynamic Pricing Promotion Strategies on Consumer Repeat Purchase Behavior in the United States

Abstract

This study investigates the impact of dynamic pricing promotion strategies on consumer repeat purchase behavior in the United States. Employing a mixed-methods approach, we collected and analyzed quantitative survey data from 300 respondents, as well as qualitative insights from 15 in-depth interviews and two focus groups. Our findings indicate that personalized pricing is the most effective strategy, increasing repeat purchase likelihood by 25%, followed by demand-based pricing at 15%, and time-based pricing at 10%. The effectiveness of these strategies varies across different demographic segments, with personalized pricing being particularly effective among high-income and younger consumers. Additionally, consumer perceptions of fairness, transparency, and trust play a critical role in the acceptance and success of dynamic pricing strategies. The study highlights the need for businesses to prioritize these factors to build long-term customer loyalty and maximize profitability. Future research directions include longitudinal studies, experimental designs, and industry-specific analyses to further explore the dynamics of consumer behavior in response to dynamic pricing.