Surge in Wendy's complaints exposes limits to consumer tolerance of unstable prices

abcnews.go.com:

A social media backlash to media reports that said fast-food chain Wendy’s had plans to increase menu prices during its busiest hours shows a limit to where, when and for what U.S. consumers will trade more cash for convenience

NEW YORK — Consumers will pay more for a flight to Florida or for a hotel room during peak vacation times. They fork out more for a rush hour Uber ride, perhaps while grinding their teeth, and rely on apps like ParkWhiz or ParkMobile to book spots for their cars at premium prices.

But a social media backlash this week to media reports that said fast-food chain Wendy’s had plans to increase menu prices during its busiest hours showed a limit to where, when and for what U.S. consumers will trade more cash for convenience. It looks like a Dave's Double Combo or a Frosty won't make the cut.

Wendy's clarified its intentions Wednesday, drawing a distinction between the company's “dynamic pricing” strategy and “surge pricing” practices that charge more during times of peak demand. The company said any fluctuations it decides to test in the future “would be designed to benefit our customers and restaurant crew members.”

Here’s a look at the differences between dynamic and surge pricing, which industries are using them and some of the more subtle ways in which companies build price fluctuations into their bottom lines.

Dynamic pricing and surge pricing are both models that continuously adjust prices based on a range of factors, sometimes within minutes. Dynamic pricing can involve both increasing and decreasing prices, based on market conditions, the season and supply changes. Surge pricing is a subset of dynamic pricing and only involves increasing prices, based on supply and demand, experts say.

Dyna