Dynamic Pricing Risks Eroding Consumer Trust: Gartner

68% of those surveyed said they’ve cut back on spending as a form of self-improvement

Brands employing dynamic pricing run the risk of losing consumer trust according to a Gartner report.

A survey of 303 U.S. consumers conducted in October found that 68% reported that dynamic pricing made them feel like they were taken advantage of. Eighty percent felt that brands with consistent pricing were more trustworthy, with 42% being willing to spend more on a product if they were certain the price wouldn’t change. 

Consumers are on the lookout for these shifts, with 79% of respondents to a cultural attitudes and behavior survey from October saying they experienced surge pricing, hidden fees, unforeseen rate hikes, or other unexpected price changes within the last year.

“While inflation may have eased, suspicion and frustration have not — and these negative sentiments are fueling distrust and price paranoia,” Gartner Marketing VP analyst Kate Muhl said in a statement. “As a result, consumer loyalty is diminished and the brand relationship hardens into something more adversarial.”

Also read: Gartner Predicts Top 10 Strategic Tech Trends for 2025, From Smart Tags to Brain-Machine Interfaces