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Let's say an online-only retailer (specialized market/without own brand) trying to play with the price of the product.

If only matching amazon's price, it might end up not making much profit, since the cost from the vendor is higher than amazon's.

Are traditional approaches such as Thomson Sampling still useable for this case? I guess the discrete price (Multi-Armband) is within 30 cents (10 cents -/+) based on amazon's.

I've heard of pricing based on customer demographic(ex, mac users pay more).

One stragey I can think of is: if it's priced cheaper, it might have chances to get more customers?

What are the different strategies or objectives out there?

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  • $\begingroup$ Some points from this blogpost by bcg gamma consultants might interest you. For example, the methodology includes taking into account price of the competition and dynamic pricing. $\endgroup$ – dhasson Jun 30 at 5:33

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