Veritec Solutions upends the traditional methods of using "static purchase fences" and restrictions that have enabled a seemingly homogeneous product to be offered to customers at multiple prices.

Dr. Warren Lieberman introduces dynamic differentiated pricing ("value pricing") based on inventory availability, allows customers to self-select the product they want based on their own preferences and values, and discusses how the interplay of psychology fits into customer pricing choices.

The traditional method of revenue management pricing typically involves compartmentalizing product segments, and then assigning prices to those segments. Within a product segment, purchase or usage fences and restrictions are introduced to further compartmentalize the product, allowing for additional price points. But assignments are static.

What if we relax the fencing restrictions? Furthermore, what happens if we dynamically adjust prices based on product availability?

Warren explores these and other ideas in this fascinating presentation as part of the INFORMS Practice Section series on advancing the practice of analytics, operations research, and management science.

A question and answer follows, where value pricing implementation and other topics are discussed.