Wednesday, September 1, 2021

September 2, 2021 - From vaccine mandates to a chatting ban: how schools in the Asia Pacific are managing Delta

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TradeBriefs Editorial

From the Editor's Desk

The Pitfalls of Pricing Algorithms

Be mindful of how they can hurt your brand.

More and more companies are relying on pricing algorithms to maximize profits. The use of artificial intelligence and machine learning enables real-time price adjustments based on supply and demand, competitors' activities, delivery schedules, and so forth. But constant price shifts have a downside: They may trigger unfavorable perceptions of a firm's offerings and its brand.

It's vital, therefore, to understand and manage the signals being sent by the algorithms. The authors offer real-world examples of companies that have succeeded in this endeavor and others that have not. And they recommend four steps to avoid harm: Determine an appropriate use case for algorithmic pricing and explain its benefits to customers; designate an owner to supervise and be accountable for the system; set and monitor guardrails, both to protect against wild surges and to learn how price changes affect all aspects of the organization; and override the algorithms when necessary.

Continued here


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