Survey Reveals Limited Awareness of Dynamic Pricing Among Japanese University Students

A recent survey conducted in Japan revealed that nearly three-quarters of university students are unfamiliar with the concept of dynamic pricing, with less than 10% able to explain it to others. The survey, carried out by The Mainichi Shimbun in collaboration with Tokyo-based IT firm Penmark Inc., aimed to assess student awareness of common pricing strategies encountered in daily life.

Dynamic pricing refers to a pricing strategy where prices fluctuate based on demand. It is widely used in industries such as accommodation, airlines, and professional sports, where ticket prices can vary depending on factors like the popularity of events or teams. Essentially, the same product or service may have multiple price points depending on timing and circumstances.

The survey results showed that 74.4% of respondents had never heard of dynamic pricing. Another 15.9% were somewhat familiar with the term but couldn’t explain it clearly. Only 5.1% of students said they fully understood the concept and could explain it to others, while an additional 4.7% claimed to have some knowledge and could offer an explanation, putting the combined awareness at under 10%.

The survey also explored awareness of another pricing strategy, “dual pricing,” which has gained attention with the increase in inbound tourism to Japan. Dual pricing involves setting different prices for domestic and foreign customers, a controversial practice that has sparked debate in Japan. Recent examples include seafood bowls priced at nearly 20,000 yen (about $135) and discussions about raising entrance fees for foreign tourists at Himeji Castle, a UNESCO World Heritage site.

Regarding dual pricing, 32.9% of respondents had heard of the term but lacked detailed knowledge, while 18.5% said they could explain it to others, and 15.3% were well-versed in the concept. Overall, about two-thirds of students had some level of awareness. However, 33.3% said they were unfamiliar with the concept.

When asked about their stance on setting higher prices for foreign tourists, 54.4% of students supported the idea, 24.2% were opposed, and 21.4% were unsure.

Penmark CEO Naoaki Yokoyama suggested that the low level of awareness around dynamic pricing could be due to students having limited exposure to services where such pricing is used. On the other hand, he noted that news coverage may have influenced perceptions of dual pricing, as many believe that foreign tourists are spending more freely due to the weak yen.

The online survey was conducted from July 4 to 14, targeting users of the Penmark app. A total of 1,116 university students from first- to fourth-year participated in the survey, which included 13 questions.

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