But larger companies, such as Amazon, Jet, and Sears, continually adjust prices in real time.

Real-time pricing changes product prices on the fly based on a variety of factors, such as limited stock of an in-demand product, a customer s browsing history, weather patterns, and competitor pricing.

A good example is offering a discount on umbrellas when a customer is browsing the site from a location where it is raining.

Much data needs to be analyzed instantly to offer the promotional price, such as customer information, location, weather, relevant products, appropriate profit margins, and the duration of the promotion.

But that has changed, thanks to faster and less expensive computers and multiple vendors that offer this capability.

Shoppers know they will get a competitive price without shopping on other sites.

The text above is a summary, you can read full article here.