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Kroger under fire for AI-powered dynamic pricing. Occurred: August US supermarket chain Kroger prompted alarm for adjusting the prices of its products in real-time using artificial intelligence. Kroger's dynamic pricing system enables real-time price adjustments based on factors such as demand and customer data. The company introduced electronic shelf labels ESLs with "Kroger Edge" technology in , expanding the initiative to stores across the US by Kroger now plans to install cameras at digital displays that use facial recognition to determine customers' gender and age, presenting personali s ed offers based on this information, claiming it will enhance customer experience.
Critics argue that dynamic pricing can lead to price surging or gouging, particularly for low-income and vulnerable customers who may be disproportionately affected by rapidly changing prices.
Some also say it amounts to little more than corporate profiteering and express concerns about the lack of transparency. Dynamic pricing. Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, and variable pricing is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market demands.
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Page info Type: Issue Published: August Search this site. Embedded Files. Dynamic pricing Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, and variable pricing is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market demands.