Matching Prices to Demand—in Real TimeCan an ice cream shop charge more for a cone on a ho

Matching Prices to Demand—in Real Time

Can an ice cream shop charge more for a cone on a hot day？ Should a parking space get (21) as the garage fills up？

Boston Consulting Group senior adviser George Stalk believes business can—and should—charge according to (22) The idea builds on a longtime strategy most (23) the airline industry, called yield management, in which carriers (24) prices as planes fill up. The consultant, who in the late 1980s coined the term" time-based competition", the notion that (25) is a strategic weapon, thinks far more companies could take similar steps to match prices to real-time customer demand. Such moves are especially (26) following a year when oil and commodities prices swung wildly, he notes, "companies couldn't change prices as fast as they needed to. "

Stalk says existing technologies such as radio-frequency identification, GPS, and wireless networks could someday make what he calls dynamic pricing a reality. He points to Ohio auto insurer Progressive, which is expanding its MyRate program that offers discounts in return (27) demonstrably safe driving habits. Customers who (28) to the program can plug a device into their cars' diagnostic ports, often situated beneath the steering wheel. The devices then wirelessly (29) data to Progressive on how many miles customers travel, how fast they drive, and other factors. Progressive uses the information to offer policyholders discounts every six months for safe behaviour and, in states where it's allowed by laws, to tack (30) surcharges for risky driving.

(21)

A．cheap

B．expensive

C．costly

D．costlier