Dynamization of Retail Pricing: From Traditional Price Determinants to Automation Based on Artificial Intelligence

Christian Daase, Seles Selvan, Dominic Strube, Daniel Staegemann, Jennifer Schietzel-Kalkbrenner, Klaus Turowski

2025

Abstract

Setting product prices poses both challenges and chances for retailers, as higher prices per stock keeping unit might lead to lower customer volume, while lower prices might result in insufficient turnover in relation to costs. In the age of digitalization and artificial intelligence, understanding price determinants becomes even more important as customer preferences shift and alternatives for purchasing products, such as online, are within easy reach. Based on a systematic literature review, this study aims to build a comprehensive model of traditional factors influencing customers’ price perception as fair, with an extension towards AI-driven data integration and use case design to ultimately realize dynamic pricing models such as real-time demand pricing, personalized pricing and further machine learning-based approaches. The final visualization is intended as guidance for practitioners to evaluate their pricing strategies to determine if factors are currently being overlooked and to consider how they could be incorporated into future decisions. Researchers can also use the insights gained to build upon and expand the potential of AI integration into pricing automation.

Paper Citation

in Harvard Style

Daase C., Selvan S., Strube D., Staegemann D., Schietzel-Kalkbrenner J. and Turowski K. (2025). Dynamization of Retail Pricing: From Traditional Price Determinants to Automation Based on Artificial Intelligence. In Proceedings of the 27th International Conference on Enterprise Information Systems - Volume 1: ICEIS; ISBN 978-989-758-749-8, SciTePress, pages 617-629. DOI: 10.5220/0013441000003929

in Bibtex Style

@conference{iceis25,
author={Christian Daase and Seles Selvan and Dominic Strube and Daniel Staegemann and Jennifer Schietzel-Kalkbrenner and Klaus Turowski},
title={Dynamization of Retail Pricing: From Traditional Price Determinants to Automation Based on Artificial Intelligence},
booktitle={Proceedings of the 27th International Conference on Enterprise Information Systems - Volume 1: ICEIS},
year={2025},
pages={617-629},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013441000003929},
isbn={978-989-758-749-8},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 27th International Conference on Enterprise Information Systems - Volume 1: ICEIS
TI - Dynamization of Retail Pricing: From Traditional Price Determinants to Automation Based on Artificial Intelligence
SN - 978-989-758-749-8
AU - Daase C.
AU - Selvan S.
AU - Strube D.
AU - Staegemann D.
AU - Schietzel-Kalkbrenner J.
AU - Turowski K.
PY - 2025
SP - 617
EP - 629
DO - 10.5220/0013441000003929
PB - SciTePress