The “right price perception” can differentiate a brand from its competitors.
Using AI tools for price optimisation can help retailers that lack the time and capacity to process all the necessary data to arrive at a particular price point. AI can also help process a large amount of data across multiple pricing and non-pricing parameters.
A PwC study quoted in this article found that price is a big attraction towards a particular retailer, more so than a desired item being a stock, brand trust and the retailer’s location. So building the “right price perception” is crucial for retailers. Using AI can help them create a favourable perception so that the consumers view its products and services as optimally priced in the market.
The author notes that using AI can also help forecast demand, recommend prices in real time and help develop a rewarding customer journey. For example Amazon’s use of AI based price recommendations helps it generate over of its 35% revenue.
[4 minute read]