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The Pitfalls of Pricing Algorithms.
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.
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| PSB lt.2 - Karya Akhir (Majalah) | 1 |
| Penerbit | United States: Harvard Business Publishing 2021 |
|---|---|
| Edisi | September-October 2021 |
| Subjek | Profit Artificial intelligence Algorithms Machine Learning Supply & demand Mathematical models of pricing |
| ISBN/ISSN | 0017-8012 |
| Klasifikasi | NONE |
| Deskripsi Fisik | 148 p. |
| Info Detail Spesifik | Harvard Business Review |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas |