Pricing in the Digital Age: How Technology is Changing the Law of Supply and Demand

Abstract

Companies across industries are modifying their pricing in the digital age in response to technological advancements. This literature review investigates how these modifications impact the traditional law of supply and demand. Furthermore, this review analyzes the effects of digital technology on consumer behavior and how it influences price change in various markets. This meta-synthesis focuses on how technology changes the usual trend on the law of supply and demand. The findings demonstrated that introducing digital technologies has disrupted traditional pricing models and created new opportunities for organizations to gather and process consumer data, resulting in more dynamic and flexible pricing strategies. Moreover, the study found that digital technology dramatically affects consumer behavior. Consumers are now more empowered and informed, resulting in heightened price sensitivity and a greater demand for personalized pricing. This study emphasizes the need for businesses to continuously adapt their pricing strategies to remain competitive in the digital marketplace and to meet the evolving needs of tech-savvy consumers.

Keywords: Consumer behavior, Digital technology, E-commerce, Law of supply and demand, Online shopping, Pricing tactics, Technology