Pricing and data science: The tale of two accidentally parallel transitions

Wallusch Jacek ()
Additional contact information
Wallusch Jacek: Instytut Kliometrii i Badań nad Transformacją, ul. Nałęczowska 85, 60-472 Poznań, Poland

Economics and Business Review, 2023, vol. 9, issue 2, 115-132

Abstract: Accidentally parallel at the beginning, the transition to value-based pricing and transition to pricing data science have blended harmoniously, changing the pricing landscape. Using the marketing capability approach, I show that the introduction of pricing data science is costly and requires higher management support. Despite its cost, algorithmic price optimisation allows one to react swiftly to changes in demand. The optimisation process is applied to inherently non-linear, multimodal, and right-skewed pricing data. Presenting the interactions between new computational techniques and value-data pricing, I concentrate on altered perceptions of price elasticity, value-driver estimations, and contract opportunity analysis.

Keywords: pricing; value-based pricing; machine learning; data science (search for similar items in EconPapers)
JEL-codes: C81 L11 M31 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.18559/ebr.2023.2.739 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecobur:v:9:y:2023:i:2:p:115-132:n:6

DOI: 10.18559/ebr.2023.2.739

Access Statistics for this article

Economics and Business Review is currently edited by Tadeusz Kowalski

More articles in Economics and Business Review from Sciendo
Bibliographic data for series maintained by Peter Golla ().