Prices seesaw all the time on the sites of online retailers like Amazon that use algorithms and artificial intelligence to monitor competitors and glean insights into individual shoppers, adjusting prices depending on interest in the product or in the brand, said Timothy Webb, an assistant professor at the University of Delaware’s hospitality and sport business management program. Coupons and other offers are also routinely dangled in mobile apps to encourage people to make purchases. “A lot of this stuff is already happening even if you don’t realize that it is happening. If you have the Starbucks app and I have the Starbucks app, we probably have different offers,” Webb said. “We might not be in the drive-through and they just increased the prices, but we are already paying different prices for the same products.”
But, he says, Wendy’s fans will likely see moderate, not massive, price swings during periods of peak demand. “It’s not like $200 or $300 on a flight. This is a hypercompetitive industry. If Wendy’s goes up $2 to $3 on a burger at dinner time, I would be shocked. People have too many options. They will just walk down the street and eat at Burger King instead,” Webb said. “There will just be little price changes here.”
