<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</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.

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

Economics and Business Review

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Pricing and data science: The tale of two accidentally parallel transitions"}

Accidentally parallel at the beginning, the transition to value-based pricing and transition to pricing data science have blended harmoniously, changing the...

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

Published Online: Jul 26, 2023

Page range: 115 - 132

Received: Apr 30, 2023

Accepted: Jun 16, 2023

DOI: https://doi.org/10.18559/ebr.2023.2.739

Keywords
pricing, value-based pricing, machine learning, data science

© 2023 Jacek Wallusch, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

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

Published Online: Jul 26, 2023

Page range: 115 - 132

Received: Apr 30, 2023

Accepted: Jun 16, 2023

DOI: https://doi.org/10.18559/ebr.2023.2.739

Keywordspricing, value-based pricing, machine learning, data science

© 2023 Jacek Wallusch, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
pricing, value-based pricing, machine learning, data science