All these positive factors enable companies to cath customers’ intention, shape their behavior, and encourage them to take action.ĭynamic pricing is a big data-based strategy that is very often applied by e-vendors to maximize sales and revenue. E-commerce vendors utilize big data analytics and similar approaches to offer the experience of convenient online shopping, set dynamic prices, and provide consumer value through the appropriate channels. Consumers are mindful of their spending and care more about the products’ prices. Covid-19 pandemic significantly shifted consumer behavior towards using sharing platforms and e-commerce, which effects may persist for an extended period (Thomann, 2020). The application of different data mining techniques leads to personalized offerings that meet people’s current demands, hobbies, and preferences. Data on previous purchases, consumer satisfaction, emotional tendencies, and product usage helps firms to design appropriate recommendation systems, customer service, and information search. 3), big data is “a collection of massive and complex datasets and data volume that includes huge quantities of data, data management capabilities, social media analytics, and real-time data.” In other words, big data analytics was developed as a tool to predict, measure, and understand customer behavior. The big data approach allows them to draw insights from and monetize customer information. With technological advancement and continuous generation of data, businesses started to collect personal, engagement, behavioral, and attitudinal data. Big data analytics and pricing approaches would be discussed further to define the pros and cons. The representatives of the sharing economy collect this real-time information and assess it to set dynamic prices and improve efficiency by targeting people’s willingness to pay. Levchin (2013), in his speech, called this ability a network effect of data that makes it difficult to compete with analog-data-driven companies. Although such services are known for transparency and feedback, they also allow companies to assess demand and efficiently price their services and products. For instance, Uber processes requests of consumers in a centralized queue, places them on auction, finds matches, and gives feedback in a real-time (Levchin, 2013). The information that was analog before is now digitalized and centrally managed. Such businesses are famous for collecting and using customer data to improve their offerings and performance. For instance, BlaBlaCar provides customers with the ability to ride in another consumer’s car temporarily, which does not require the ownership transfer (Eckhardt et al., 2019). The sharing is often economically motivated and involves such C2C transaction methods as payments and bookings. It is a decentralized economic model based on peer-to-peer interactions (P2P) to acquire, provide or share resources that are usually coordinated through community-based online services (Puschmann and Alt, 2016, p. The sharing economy evolved as a popular and progressive business model that abandons intermediary third-parties. Despite possible risks, consumer data and dynamic pricing may be beneficial both for customers and sellers as this model is more flexible, sustainable, and economically beneficial. Although the famous software engineer lists some risks concerning data processing, he sees data-driven understanding and dynamic pricing as an opportunity. Big data usage, dynamic/personalized pricing, and digitalization of analog data was discussed by Levchin (2013) in his DLD13 keynote. Nowadays, all the information about transactions can be collected, stored, and then analyzed to gain insights about customer behavior, preferences, and willingness to pay. Platforms and services like Uber enjoy access to consumer data that exponentially grow every day. Nevertheless, there are some serious challenges regarding safety, regulations, and ethics. Airbnb, Uber, WeWork, and Kuaidi Dache are among the most innovative start-ups in the industry. Various community platforms and social networks create a space for people who are willing to share their resources, whereas the advancement of smartphones and e-commerce enabled its wide application. The rapid development of the Internet and IT spurred new business models based on social commerce that is mediated by social media.
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