Pricing Psychology & Revenue Models

Surge Pricing: Balancing Profit and Perception

Demand spikes can lift margins—or trigger outrage. Probe the policies and disclosures that keep dynamic pricing sustainable.

India’s 2025 Motor Vehicle Aggregator Guidelines allow ride‑hailing surge pricing up to ______ of the base fare in peak hours.

1.25×

1.5×

The 2025 update raised the cap to 2× of the base fare during peak hours.

Under the same 2025 rules, non‑peak fares must not fall below what fraction of the base rate?

75% of base fare

No lower bound

50% of base fare

25% of base fare

Guidance pairs the peak cap with a non‑peak floor at half the base fare.

Which U.S. policy trend in 2025 targets add‑on fees and deceptive price presentation in tickets and lodging?

Mandatory fixed prices for events

A ban on service fees nationwide

A federal rule prohibiting bait‑and‑switch pricing and hidden fees

A federal ban on dynamic pricing

The 2025 federal rule focuses on transparent, all‑in pricing rather than banning dynamic pricing outright.

Which state considered capping rideshare prices during large events at a small premium over normal driver pay in 2025?

Florida

Texas

Washington

Nevada

A Washington bill proposed limits for event‑driven surge pricing to reduce extreme spikes.

Which approach most reduces consumer backlash to surge pricing according to 2025 coverage of dynamic pricing controversies?

Hiding premium seats until checkout

Unlimited surges with vague messaging

Clear upfront disclosure of caps/floors and total price before purchase

Opaque algorithms with post‑purchase refunds

Reports emphasize transparency—stating limits and totals—over opaque increases that trigger backlash.

Which sector’s use of demand‑based pricing drew heavy scrutiny from fans and regulators in 2024–2025?

Live event ticketing

Municipal utilities

Public transit fares globally

Grocery staples only

Dynamic ticket pricing for concerts and major events spurred investigations and legislative proposals.

For public acceptance, which policy pairing mirrors India’s 2025 approach?

Peak caps combined with non‑peak floors

Neither caps nor floors—full laissez‑faire

Only peak caps

Only floors

A cap‑and‑floor scheme balances driver supply incentives with rider affordability expectations.

In surge models, what is the principal risk of no stated cap and poor disclosure?

Brand damage from perceived price gouging

Too much driver supply

Lower matching efficiency

Ticket fraud only

Coverage shows opaque spikes trigger consumer anger and reputational harm despite short‑term revenue gains.

Operationally, why do platforms prefer dynamic prices to strict static fares during spikes?

To eliminate wait‑time estimates

To avoid regulatory oversight

To clear markets by matching supply with demand

To reduce driver earnings

Dynamic multipliers attract drivers to hotspots, shortening wait times and balancing the marketplace.

If a city adopts an events‑based cap similar to proposals in 2025, which KPI should teams monitor to ensure service quality?

Average wait time and fulfillment rate during capped windows

Blog traffic

Daily app installs only

Merchandise sales

Caps can affect marketplace balance; monitoring wait times and fulfillment ensures reliability is maintained.

Starter

Good start—review the core drivers and thresholds for this topic.

Solid

Nice work—tighten your grasp on edge cases and exceptions.

Expert!

Masterful—your pricing instincts are calibrated to market reality.

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