While the technology may not be in place to make price collusion a reality, price discrimination is certainly happening and is something that consumers should be aware of. To avoid being duped into paying higher prices because of location, net worth, past shopping history, etc., consumers must shop wisely, protecting as much of their purchase behavior as possible. Now more than ever, it’s important to take the time to research and compare in order to get the best possible price, as the author explains.
Machine learning and artificial intelligence have become very popular topics in the pricing community. However, many perceive these tools as overly complex and not practical to implement quickly into their existing processes. In this article, the author presents a machine learning technique called regression analysis and demonstrates simple applications that can be readily employed by pricers in any industry.
Artificial Intelligence (AI), and particularly Machine Learning (ML), will change the game for pricing. But AI’s just the tip of the iceberg. You need first to make sure that the foundations of your business - your pricing strategy and implementation plan, data, workforce, etc. - are solid so you can introduce AI constructively, as the authors explain.