What do you think about dynamic pricing for fuel? Does it really have any impact on the customer's behaviour or do they still just end up buying fuel when they're low and happen to be passing the local station?
Interesting question. From a purely profit maximising perspective I guess the answer is 'it works if it works' and the question will be exactly the one you pose about consumer behaviour. I still remember the old tutorial point about market research, though. Ask a consumer what's important about their choice of petrol station and the #1 answer will be 'price'. Then ask them how much petrol is, and they will have only a vague idea if at all.
What do you think about dynamic pricing for fuel? Does it really have any impact on the customer's behaviour or do they still just end up buying fuel when they're low and happen to be passing the local station?
Interesting question. From a purely profit maximising perspective I guess the answer is 'it works if it works' and the question will be exactly the one you pose about consumer behaviour. I still remember the old tutorial point about market research, though. Ask a consumer what's important about their choice of petrol station and the #1 answer will be 'price'. Then ask them how much petrol is, and they will have only a vague idea if at all.