The emergence of Algorithmic Pricing enhanced by Hyper-Personalization in the era of Artificial Intelligence

Abstract

This study aims to shed light on a significant phenomenon, which is the birth of Algorithmic Pricing (AP) considering the spread of talk about improving Customer Experiences (CXs) strengthened and optimized by Hyper-Personalization instead of Mass Customization. Amid awesome scientific developments and tremendous technical advances, in the electronic fields of Information & Communication Technologies (ICT), Cyber-Physical Systems (CPS), Digital Innovations, Internet Networks, intranets & Extranets, and Satellites. And many other inventions and discoveries in the farmland of Computer Sciences. All the above has resulted in the emergence of the fifth wave of successive industrial revolutions, which led to the emanation of Artificial Intelligence (AI)-enhanced Industry 5.0. The latter carries with it transformative tools that have brought about fundamental and radical changes in the Marketing Mix (MM) landscape and dynamic pricing decisions, which have become more based on Automation and Collaborative Robots (Cobot) than ever before. Examples include Machine Learning (ML), Deep Learning (DL), Reinforcement Learning (RL), Generative AI, Big Data Analytics (BDA), Natural Language Processing (NLP), Large Language Model (LLM), ChatGPT (OpenAI), Virtual Assistants (VAs), Internet of Things (IoT), Blockchain (BC), Cloud Services, Quantum Computing, Augmented Reality (AR), Virtual Reality (VR) and Web 4.0, ...etc. It is expanding at record exponential paces, and at unprecedented, accelerated growth rhythms. The research papers concluded that smart technology, embodied in AI solutions and materialized in ML software, is steadily contributing to the dynamic management of product prices and strongly supports upgrading brands pricing policies and strategies, from the perspective of efficiency and effectiveness