Dynamic pricing strategy of new product is presented after dynamic pricing of new products by a monopoly was considered.  A ‘learning' demand function was developed when the customers had the ability to ‘learn' the past retail price and advertising.  For a given advertising level of each period, the optimal dynamic pricing strategy of the retailer was given and the rules of pricing were analyzed.  It is found that retail price is surging and approaches to a constant.  The optimal retail price and advertising level of each period were derived when the retailer decided the retail price and the advertising level simultaneously.  The retail price would approach to reservation price or unit production cost with certain conditions. The conclusions were demonstrated by the numerical example.