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Algorithms Won’t Solve All Your Pricing Problems
Podcast |
HBR Ideacast
Media Type |
audio
Categories Via RSS |
Business
Entrepreneurship
Management
Marketing
Publication Date |
Oct 19, 2021
Episode Duration |
00:26:34
Marco Bertini, marketing professor at Esade Business School, says more and more companies are turning to pricing algorithms to maximize profits. But many are unaware of a big downside. The constant price shifts can hurt the perception of the brand and its products. He warns that overreliance on artificial intelligence and machine learning without considering human psychology can cause serious damage to the customer relationship. And he outlines steps managers should take, including implementing guardrails, overrides, and better communication tactics. With London Business School professor Oded Koenigsberg, Bertini wrote the HBR article "The Pitfalls of Pricing Algorithms."

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