Pricing strategies can have a huge impact on a company’s success. This paper focuses on the advantages and disadvantages of using artificial intelligence in dynamic pricing strategies. A good understanding of the pos...Pricing strategies can have a huge impact on a company’s success. This paper focuses on the advantages and disadvantages of using artificial intelligence in dynamic pricing strategies. A good understanding of the possible benefits and challenges will help companies to understand the impact of their chosen pricing strategies. AI-driven Dynamic pricing has great opportunities to increase a firm’s profits. Firms can benefit from personalized pricing based on personal behavior and characteristics, as well as cost reduction by increasing efficiency and reducing the need to use manual work and automation. However, AI-driven dynamic rewarding can have a negative impact on customers’ perception of trust, fairness and transparency. Since price discrimination is used, ethical issues such as privacy and equity may arise. Understanding the businesses and customers that determine pricing strategy is so important that one cannot exist without the other. It will provide a comprehensive overview of the main advantages and disadvantages of AI-assisted dynamic pricing strategy. The main objective of this research is to uncover the most notable advantages and disadvantages of implementing AI-enabled dynamic pricing strategies. Future research can extend the understanding of algorithmic pricing through case studies. In this way, new, practical implications can be developed in the future. It is important to investigate how issues related to customers’ trust and feelings of unfairness can be mitigated, for example by price framing.展开更多
The aviation industry is a sector that is developing, changing and growing every day in terms of technological and legal framework. There are generally three factors that enable airlines to hold on to the market. Thes...The aviation industry is a sector that is developing, changing and growing every day in terms of technological and legal framework. There are generally three factors that enable airlines to hold on to the market. These factors are safety, service quality and price. Airline companies can analyze the customers in the market with a focus on price and quality and develop a business model according to their expectations. For example, business class and economy class passenger expectations are different from each other, so the service and price to be offered to them will be different. However, all customers have one common expectation and that is safety. No matter how high quality the service is or how cheap the price is, no one wants to fly with an airline or plane that is not safe. From an airline company’s point of view, an accident or breakdown of one of the company’s aircraft can cause irreparable image loss and financial damage. If we look at past examples, we see that there are many airline companies or maintenance organizations that could not recover after an accident and went bankrupt. Safety is an indispensable factor. Therefore, there is a unit in the sector called the safety management system (SMS), which collects data by taking a proactive and reactive approach. The way and purpose of the safety management system is to take a proactive approach to recognize and prevent unsafe situations before they cause accidents or breakdowns, or to take a reactive approach to find the causes of accidents and breakdowns that have occurred as a result of certain factors and to take the necessary measures to prevent the same situations from happening again in the sector. The field of data mining, which is necessary to predict the future behavior of customers in the field of marketing, is an area that marketing also values. In this study, data mining studies to ensure safety in the aviation industry and the security of customer information in marketing will be emphasized, firstly, the concept and importance of data mining will be mentioned.展开更多
文摘Pricing strategies can have a huge impact on a company’s success. This paper focuses on the advantages and disadvantages of using artificial intelligence in dynamic pricing strategies. A good understanding of the possible benefits and challenges will help companies to understand the impact of their chosen pricing strategies. AI-driven Dynamic pricing has great opportunities to increase a firm’s profits. Firms can benefit from personalized pricing based on personal behavior and characteristics, as well as cost reduction by increasing efficiency and reducing the need to use manual work and automation. However, AI-driven dynamic rewarding can have a negative impact on customers’ perception of trust, fairness and transparency. Since price discrimination is used, ethical issues such as privacy and equity may arise. Understanding the businesses and customers that determine pricing strategy is so important that one cannot exist without the other. It will provide a comprehensive overview of the main advantages and disadvantages of AI-assisted dynamic pricing strategy. The main objective of this research is to uncover the most notable advantages and disadvantages of implementing AI-enabled dynamic pricing strategies. Future research can extend the understanding of algorithmic pricing through case studies. In this way, new, practical implications can be developed in the future. It is important to investigate how issues related to customers’ trust and feelings of unfairness can be mitigated, for example by price framing.
文摘The aviation industry is a sector that is developing, changing and growing every day in terms of technological and legal framework. There are generally three factors that enable airlines to hold on to the market. These factors are safety, service quality and price. Airline companies can analyze the customers in the market with a focus on price and quality and develop a business model according to their expectations. For example, business class and economy class passenger expectations are different from each other, so the service and price to be offered to them will be different. However, all customers have one common expectation and that is safety. No matter how high quality the service is or how cheap the price is, no one wants to fly with an airline or plane that is not safe. From an airline company’s point of view, an accident or breakdown of one of the company’s aircraft can cause irreparable image loss and financial damage. If we look at past examples, we see that there are many airline companies or maintenance organizations that could not recover after an accident and went bankrupt. Safety is an indispensable factor. Therefore, there is a unit in the sector called the safety management system (SMS), which collects data by taking a proactive and reactive approach. The way and purpose of the safety management system is to take a proactive approach to recognize and prevent unsafe situations before they cause accidents or breakdowns, or to take a reactive approach to find the causes of accidents and breakdowns that have occurred as a result of certain factors and to take the necessary measures to prevent the same situations from happening again in the sector. The field of data mining, which is necessary to predict the future behavior of customers in the field of marketing, is an area that marketing also values. In this study, data mining studies to ensure safety in the aviation industry and the security of customer information in marketing will be emphasized, firstly, the concept and importance of data mining will be mentioned.
