Question 5

A number of business schools in the UK and US have launched new programmes on business analytics. Employees who have the skills to collect and process Big Data might help firms to successfully implement a pricing strategy.

5.1How might the processing of big data enable firms to successfully implement a pricing strategy?

(12 marks)

5.2Explain why such data-based pricing strategies may result in economically more efficient outcomes than traditional pricing.

(13 marks)