A marketing practice known in the US as surveillance pricing, in which prices are changed based on who the customer is, is attracting scrutiny. Concerns have been raised that AI may estimate an individual’s maximum willingness to pay and that the best customers may be worse off.
Using Japanese companies as examples, the article presents the full picture of surveillance pricing, which is attracting attention in the US. Surveillance pricing refers to a marketing strategy in which AI estimates an individual’s ability to pay and sets different prices for the same product depending on the customer. The report suggests examining the practice’s impact on markets and consumers.
The article points out that surveillance pricing could result in higher costs for the best customers and reports that it is being criticised on grounds of fairness and transparency. Issues raised include the accuracy of AI estimates, the handling of data and concerns about discriminatory pricing.
As a solution, the article proposes a marketing approach that changes the “offer” rather than the price itself. It introduces the idea of avoiding different burdens for different customers by adjusting terms and benefits other than price and the way the value provided is presented. Those involved place importance on ensuring transparency and ethical conduct.
Underlying the debate is the balance between the use of personal data in the digital age and consumer protection. Attention is focused on how regulation and companies’ practical implementation of surveillance pricing will develop.