Marco Bertini, a marketing professor at Esade Business School, dives into the intriguing world of dynamic pricing strategies. He cautions that while algorithms can enhance profits, they may hurt brand perception if not aligned with human psychology. Bertini emphasizes the importance of maintaining customer trust amidst fluctuating prices. He shares actionable strategies, including communication tactics and real-world examples, to strike a balance between profit maximization and customer loyalty, making it a must-listen for modern businesses.

Marco Bertini, marketing professor at Esade Business School, says more and more companies are turning to pricing algorithms to maximize profits. But many are unaware of a big downside. The constant price shifts can hurt the perception of the brand and its products. He warns that overreliance on artificial intelligence and machine learning without considering human psychology can cause serious damage to the customer relationship. And he outlines steps managers should take, including implementing guardrails, overrides, and better communication tactics. With London Business School professor Oded Koenigsberg, Bertini wrote the HBR article "The Pitfalls of Pricing Algorithms."