"As soon as you talk about dynamic pricing, there is immediately repulsion by consumers. There's no positive first impression in the consumer."
"There's a lack of understanding of why this is done, so the consumer thinks it's all about profit. And in a way, it is."
"In a world where backlash can be spread rapidly on social media and amplified by the traditional press, that's a dynamic brands can't shrug off."
"Delta already uses AI to drive personalized pricing on 3% of its flights, and aims to bump that to 20% by the end of the year."
Many consumer-facing companies are eager to adopt AI-driven dynamic pricing strategies, which allow them to adjust prices based on various factors including demand and individual consumer situations. However, these strategies often evoke backlash from consumers who perceive them as exploitative. Dynamic pricing lacks a favorable reputation, primarily driven by concerns about profit motives and transparency. Airlines like Delta are experimenting with personalized pricing using AI, leading to significant criticism from consumer advocates and politicians, emphasizing the public's negative sentiment towards such practices.
Read at Fast Company
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