Therefore the prices of goods are important in the marketing of products One of

Therefore the prices of goods are important in the

This preview shows page 5 - 7 out of 13 pages.

Therefore, the prices of goods are important in the marketing of products. One of the elements of pricing that consumers rely on is discounts. Some clients will never purchase any product unless they are discounted. It is important to note that discounts increase the number of sales made by a company (Hughes, 2018). Artificial intelligence is used to dynamically set discounts of various prices based on a number of factors such as demand. Machines that use AI are able to evaluate the discounts on goods by looking at the demand and supply of the goods. If a product is in high demand, the machines will set a high discount to leverage the high number of consumers whereas if the goods are on low demand, the company might increase its discounts to attract more buyers. Also, the availability of goods is a crucial factor when it comes to the setting of discounts using AI. The artificial intelligence machines are most likely to set high discounts on the available products to encourage more buyers to purchase the goods thereby increasing
Image of page 5
BENEFITS OF AI IN MARKETING 6 the profits and sales (Dafoe & Journal of International Affairs, 2018). Goods that are not available may not be added discount to avoid scenarios where buyers exhaust the counters and others fail to get the discounts which might lower consumer loyalty. Besides, customer profiles are important in setting the prices of goods. Profiles of consumers that show that they are interested in high-end goods can be used to increase the prices of goods that they routinely buy while those who live in low-class settlements are given goods with low prices to match their purchasing power. Dynamic pricing enables us to increase its profits by assessing the availability of goods, customer profiles, demand and supply. Furthermore, dynamic pricing is used in plotting graphs that show how products fluctuate based on seasons, prices and customer’s geographical location. The graphs generated by AI provide concise patterns of purchasing behavior of consumers (Pasquale, 2019). For instance, the graph may indicate that people purchase more sunglasses during summer than winter. Hence, a company can lower the prices of sunglasses in winter to encourage customers to purchase them in large volumes. Besides, dynamic pricing is used in the aviation industry to study the popularity of destination places and set the appropriate prices. Dynamic pricing explains why a person may travel using an airline but coming back to their destination they find that the ticket of prices has increased with a certain amount of dollars. Thirdly, AI is used in developing customer service bots. The introduction of internet service in the early1990s has led to the creation of web application services that have tremendously increased the number of sales by companies (Agrawal, Gans & Goldfarb, 2019). Some of the web-based applications include Facebook, WhatsApp, Instagram, and Twitter. Notably, large, medium-sized and small companies have leveraged the platforms to tap on the digital market and reach on consumers that are in different parts of the globe.
Image of page 6
Image of page 7

You've reached the end of your free preview.

Want to read all 13 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes