Personalised pricing

To date, pricing and revenue management literature has mostly concerned itself with how firms can maximize revenue growth and minimize opportunity cost. Rarely has the ethical and legal nature of the field been subjected to substantial comment and discussion. This viewpoint article draws attention to some inherent ethical concerns and legal challenges that may come with future developments in pricing, in particular online personalized pricing, thereby seeking to initiate a broader discussion about issues such as dishonesty, unfairness, injustice, and misconduct in pricing and revenue management practices. Reflecting on how legislators and regulators in Europe seek to limit recent developments in personalized pricing, we argue that not much is to be expected from the legal system, at least not in the short run, with regard to guiding the pricing and revenue field in setting and implementing minimum standards of behavior. Scholarly attention should however not only be directed to the legal challenges of new forms of direct price discrimination, such as algorithmic personalized dynamic pricing, but also to the ethical and legal implications of more granular forms of indirect price discrimination, through which consumers will be allowed to 'freely' sort themselves into different microsegments, especially when the 'self-selection' is enticed by deceptive personalized applications of psychological pricing and neuromarketing.

Objective – This study examines consumer attitudes and reactions towards personalised pricing strategies in a negative and positive hypothetical purchase context. Methodology/Technique – The data was collected from 250 respondents from India through a set of two structured questionnaires, each one comprising either a positive or negative purchase scenario. Partial Least Square based Structural Equation Modelling (PLS SEM) was used to analyse the data. Findings – The results of the study imply that the consumers are concerned about the usage of their personal data for price customisation which reduces their repurchase intentions and increases the reprisal intention. The results also depict that a loyal customer base reacts positively to some extent to the personalised pricing strategy. Novelty –This study considers the impact of personalised pricing on the fair price perceptions, privacy concerns and customer loyalty in both positive and negative purchase contexts which is a novel in...

The rapid advancements in information and communication technology during the third industrial revolution of the late 20th century has marked the beginning of a new era in the retail sector with the introduction of E-commerce. The dawn of the new century witnessed industry 4.0, revolutionizing all areas of online business by bringing in novel opportunities and possibilities. Despite the progress in technology, the determination of correct pricing on online selling platforms still remains a very complex task. The adoption of big data technology has enabled online sellers to make real-time price changes of high magnitude and proximity. However, with increasing awareness among buyers regarding modern pricing strategies, it is necessary to examine probable changes in consumer behavior when exposed to dynamic pricing scenarios. This study investigates the factors that influence consumer behavior, and their prospective online purchase decisions in a dynamic pricing context, through an exp...

The rapid advancements in information and communication technology during the third industrial revolution of the late 20th century has marked the beginning of a new era in the retail sector with the introduction of E-commerce. The dawn of the new century witnessed industry 4.0, revolutionizing all areas of online business by bringing in novel opportunities and possibilities. Despite the progress in technology, the determination of correct pricing on online selling platforms still remains a very complex task. The adoption of big data technology has enabled online sellers to make real-time price changes of high magnitude and proximity. However, with increasing awareness among buyers regarding modern pricing strategies, it is necessary to examine probable changes in consumer behavior when exposed to dynamic pricing scenarios. This study investigates the factors that influence consumer behavior, and their prospective online purchase decisions in a dynamic pricing context, through an exp...

Az online kereskedelem napjainkra egyre inkább elterjedtté vált. Az elektronikus áruházak számára egyre több adat válik hozzáférhetővé a felhasználóiról, amit azok fel is használnak a kereskedelmi gyakorlatban számos céllal: személyre szabott ajánlatok küldésére, a felhasználói élmény fokozására, és – ami jelen elemzés témája – az árképzésben is. A személyre szabott árazás közgazdasági fogalma az árdiszkrimináció egyik formája, amikor a kereskedő minden egyes vásárlónak az általa kifizetni kívánt maximális árhoz közeli összegben határozza meg a termék árát. Ehhez az szükséges, hogy rendkívül behatóan, szinte személyesen ismerje a vevőt. Ez az adatbányászat (big data) eszköztárával lehetővé válik az online kereskedelemben. Jelen tanulmány a személyre szabott árazás gazdaságtanát, gyakorlati megvalósulásának módjait és a felmerülő jogi kérdéseket járja körül.

Objective-This study examines consumer attitudes and reactions towards personalised pricing strategies in a negative and positive hypothetical purchase context. Methodology/Technique-The data was collected from 250 respondents from India through a set of two structured questionnaires, each one comprising either a positive or negative purchase scenario. Partial Least Square based Structural Equation Modelling (PLS SEM) was used to analyse the data. Findings-The results of the study imply that the consumers are concerned about the usage of their personal data for price customisation which reduces their repurchase intentions and increases the reprisal intention. The results also depict that a loyal customer base reacts positively to some extent to the personalised pricing strategy.