An Investigation of AI-Driven Automated Pricing Strategies in Online Retail: A Study of Digital Stores in Benue State
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
The rise of e-commerce has significantly transformed retail industries worldwide, and pricing strategies have become a crucial determinant of competitive advantage. Traditional pricing models, based on manual adjustments or static strategies, are now being supplemented by AI-driven automated pricing systems that use algorithms to analyze market trends, customer behavior, and competitor prices in real-time. These systems enable dynamic pricing, allowing retailers to adjust prices based on demand, inventory levels, and external market conditions.
In Nigeria, e-commerce is growing rapidly, with digital stores in Benue State leveraging online platforms to reach a broader customer base. However, the pricing strategies in these digital stores often rely on basic or outdated models, resulting in suboptimal profitability and competitiveness. AI-driven pricing, which uses machine learning models and predictive analytics, presents an opportunity to enhance pricing accuracy, improve customer satisfaction, and optimize revenue.
Studies by Okoro and Sani (2023) show that AI-based automated pricing systems can lead to more competitive pricing, improved sales, and better customer experiences. However, despite the potential benefits, the adoption of AI pricing strategies in Nigerian digital stores remains slow due to concerns over implementation costs, technological barriers, and a lack of skilled professionals. This study explores the role of AI-driven automated pricing strategies in online retail, with a focus on digital stores in Benue State.
Statement of the Problem
Online retailers in Benue State often face challenges with pricing due to static models that do not account for real-time changes in market dynamics, customer preferences, and competitor actions. As a result, these businesses may experience lost opportunities for profit maximization, leading to inefficiency and reduced competitiveness. The lack of AI adoption for pricing optimization further exacerbates these challenges, leaving businesses struggling to keep up with the demands of modern consumers.
According to Hassan and Musa (2024), despite the availability of AI-powered pricing tools, many digital stores in Nigeria still rely on manual or outdated methods, which limits their ability to compete effectively in the market. This study investigates how AI-driven automated pricing strategies can enhance pricing models for digital stores in Benue State, improve competitiveness, and increase profitability.
Objectives of the Study
-
To assess the adoption and effectiveness of AI-driven automated pricing strategies in digital stores in Benue State.
-
To evaluate the impact of AI-driven pricing strategies on sales performance and customer satisfaction.
-
To identify the challenges faced by digital stores in implementing AI-based pricing strategies.
Research Questions
-
To what extent have AI-driven automated pricing strategies been adopted in digital stores in Benue State?
-
How do AI-driven pricing strategies impact sales performance and customer satisfaction in digital stores?
-
What are the challenges faced by digital stores in implementing AI-based pricing strategies?
Research Hypotheses
-
AI-driven automated pricing strategies have not been significantly adopted in digital stores in Benue State.
-
AI-driven pricing strategies do not significantly improve sales performance or customer satisfaction in digital stores.
-
Challenges significantly hinder the implementation of AI-driven automated pricing strategies in digital stores.
Scope and Limitations of the Study
The study focuses on digital stores in Benue State and their use of AI-driven automated pricing strategies. Limitations include potential biases in the data collected from businesses that may either overstate or understate their use of AI tools. Additionally, the study is limited to businesses with an online presence, excluding traditional brick-and-mortar stores.
Definitions of Terms
-
AI-Driven Automated Pricing: The use of artificial intelligence algorithms to dynamically adjust prices based on real-time data analysis.
-
E-Commerce: The buying and selling of goods and services over the internet.
-
Dynamic Pricing: A pricing strategy that adjusts prices based on demand, competition, and other market factors in real-time.
Related Project Materials
An investigation into the impact of vocational education on reducing substance abuse among youths in Toto Local Government Area, Nasarawa State.
Background of the Study
Substance abuse among youths has emerged as a critical public health concern in many parts of Nige...
Exploring the Role of Media in Shaping Public Attitudes Towards Persons with Disabilities in Machina Local Government Area, Yobe State
Chapter One: Introduction
1.1 Background of the Study...
ASSESSMENT OF THE EFFECT OF RESISTANCE TRAINING ON BIOMOTOR ABILITIES OF MALE FOOTBALL PLAYERS IN FEDERAL COLLEGE OF EDUCATION, KONTAGORA, NIGERIA
ABSTRACT
The study assessed the effects of resistance training on selected biomotor abilities of male football players in Federal College...
Investigating the Effectiveness of Media Advocacy in Preventing Child Marriage in Rimi Local Government Area, Katsina State
Chapter One: Introduction
1.1 Background of the Study...
An investigation of geopolitical challenges in managing ethnic diversity in Kachia Local Government Area, Kaduna State
Background of the Study
Ethnic diversity is a defining feature of Nigerian society, with multiple ethnic groups coexisting in various region...
EXAMINING THE TAXATION OF RELIGIOUS ORGANIZATIONS IN MONGUNO LGA
Background of the Study
Religious organizations play a vital role in the social, economic, and cultural...
An Evaluation of Nurse-Led Interventions in Reducing Maternal Mortality Rates in Kaduna State
Background of the Study
Maternal mortality remains a major public health challenge in Nigeria, and Kaduna State is no exception. Despite...
An appraisal of religious institutions in promoting social cohesion in Ijebu-Ode Local Government Area, Ogun State.
Background of the Study
Religious institutions have long served as pillars in many Nigerian communities, significantly sha...
A SURVEY OF REVELANCE OF BUSINESS EDUCATION PROGRAMME TO ECONOMIC DEVELOPMENT OF NIGERIA
Abstract
The study examined the relevance of Business Education program to economic development of Nigeria. The study fo...
EVALUATION OF THE SUITABILITY OF THE RIVER NIGER WATER FOR AGRICULTURAL AND DOMESTIC PURPOSES IN PARTS OF KOGI STATE, NIGERIA
Statement of the Problem
From the best of my knowledge, no systematic study has been conducted on the River within the period and the are...
