Societal Implications of Personalized Pricing in Online Grocery Shopping

Abstract

AbstractAttention to big data analytics is ubiquitous and growing given the online shopping revolution and its potential to generate individual-specific actionable datasets which were previously unavailable or cumbersome to cultivate. However, the food industry has not drawn much attention to discussions of individualized pricing strategies using online grocery datasets. Considering growth of the online grocery market and consumers data abundance to grocers, this brief viewpoint article focuses on potentials of incorporating big data analytics into pricing strategies in online grocery markets. This discussion informs of various practices of big data analytics and ultimately calls to attention the potential for personalized pricing in online food markets. This article proposes the need for empirical analysis and developing research agendas investigating impacts of personalized pricing on market efficiencies, which is not as unambiguous in practices as it is theoretically. In addition, the status of online groceries, concepts of price differentiation, societal, economic, and regulatory implications of personalized pricing are discussed.