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The theoretical potential of algorithmic and automated pricing to increase company value
Journal of AI, Robotics & Workplace Automation,
3
(2),
111-123
(2024)
Abstract
This paper explores the potential benefits and challenges of algorithmic and automated pricing for businesses and critically examines the associated ethical and legal implications. To this end, in this first part of a two-part study, seven areas of discussion were identified in which the future of algorithmic pricing can be described in an overall view (eg data, resource allocation). Within these areas, a total of nine central hypotheses (eg what effects it will have on competitive situations and the development of user acceptance) were developed on the basis of current scientific findings. The overall study takes a customer-centric approach and proposes that algorithmic pricing should be seen not only as a tool to maximise profits, but as a strategy that creates added value for both the company and the consumer. In the second part of the study (to be published in the next issue of the journal), the hypotheses developed in this paper will be evaluated by experts in the field.
Keywords: algorithmic pricing; dynamic pricing; shareholder value; customer centricity; profit maximisation; value creation
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Author's Biography
Peter Rathnow Prof. Dr. Peter Rathnow teaches strategic and international management at the Technische Universität and the International School of Management Munich. He has been involved with advanced price management for more than 20 years, from different perspectives: as a university lecturer, as a senior manager of a leading consulting company and as a global representative for various business divisions of a large cooperation.
Benjamin Zeller is a Manager Corporate Strategy for a dental manufacturer based in Liechtenstein. His first encounter with the topic of price management was during his Master’s degree in strategic marketing management at the International School of Management Munich. As a young professional, Benjamin has gained experience in areas such as sales operations, market research and price management as well as more recently in strategy and innovation management.
Matthias Lederer Prof. Dr. Matthias Lederer is Professor for Information Systems at the OTH Technical University of Applied Sciences Amberg-Weiden. Prior to this, he was a Professor at the ISM International School of Management Munich and Chief Process Officer at the IT Service Centre of the Bavarian justice system. His previous positions include research assistant at the University of Erlangen-Nuremberg and strategy consultant for the German industrial company REHAU. Matthias holds a doctorate and a Master’s degree in international information systems and is the author of over 80 scientific publications in this field.
