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Dynamic pricing can optimize profits but alienate customers

In addition to taking supply or production costs into account, companies increasingly use customer-level data to make pricing decisions, often with the help of artificial intelligence.

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If you’ve ever seen a steep increase in the fare for an Uber to the airport on a Friday, or you’ve checked an item’s cost on Amazon, only to see it has changed hours later, you might have experienced algorithmic pricing.

That’s the practice of using algorithms to automatically adjust the price of goods or services based on factors such as demand, competitor pricing, inventory levels, or data about the customer.

While such pricing practices can squeeze out extra profit, they can also carry a marketing risk if not carefully implemented, according to Gizem Yalcin Williams, assistant professor of marketing at Texas McCombs. In 2012, Uber was widely criticized for raising ride prices during Hurricane Sandy. More recently, customers have expressed outrage over concert ticket surge pricing.

In a paper, co-written with an interdisciplinary group of 12 other researchers, Williams examines algorithmic pricing and the challenges companies can face when integrating it with their other objectives. The researchers offer some preliminary dos and don’ts for aligning pricing with marketing strategy, regulations, and avoiding customer backlash.

One potential factor in customer backlash, Williams says, is driven by feelings of unfairness.

“Let’s say that I just got myself something from Amazon, for my dorm, and then a couple of days later, I saw that the price changed,” she says. “I now feel like I overpaid for it, regardless of how good the product is.”

By the same token, seeing a price increase later might trigger elation, she says. “If I feel like I bought it at a lower price, I feel like I was smart.”

When Prices Get Personal

If pricing sometimes feels a bit more personal when algorithms are involved, Williams says, that’s because it is.

In addition to taking supply or production costs into account, companies increasingly use customer-level data to make pricing decisions, often with the help of artificial intelligence.

The exact data that go into the algorithm might not be always known, Williams says. “But what if the price I receive is different than others because of my own data, such as my shopping history, demographics, or location? Shoppers might react to the same price differently, depending on which data they think affected the price set by the company’s algorithm.”

Besides eroding customer loyalty, companies can face regulatory or legal attention when dynamic or surge pricing goes awry. Last year, the grocery chain Kroger was scrutinized by members of Congress over its plans to introduce algorithmic pricing at its stores.

Practical advice on pricing

As part of its research, Williams’ team surveyed pricing managers and conducted in-depth interviews with five strategic-pricing experts. They offered several pieces of advice.

  • Companies should be aware of how accepting their customers are — or are not — of dynamic pricing to avoid potential reputational damages.
  • Opening the “black box” and increasing transparency about how algorithms work can help managers and employees adopt and oversee them effectively.
  • Companies need guardrails to make sure they can effectively and carefully navigate the competitive and regulatory environment.

For Williams, one takeaway, she notes, is clear: Many companies slap the AI label on their operations, to cut costs or boost efficiency, without comprehensive planning for its design, integration, and monitoring.

 “Managers need to be deliberate about when, where, and whether to integrate AI into their operations,” she says. “And even when decisions are automated, it’s critical to have mechanisms that keep humans in the loop.”

Algorithmic Pricing: Implications for Marketing Strategy and Regulation” is published in International Journal of Research in Marketing.

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Tip for resto owners and managers: Plating matters, and how sauce placement can make a dish appear healthier

The way food is presented can shape diners’ expectations before they even taste it.

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Our experience of eating is shaped by the combined influence of vision, smell, touch, and taste. The way food is presented can shape diners’ expectations before they even taste it. Visual features, such as arrangement and esthetic design, can influence perceptions of taste, quality, healthiness, and overall appeal.

Although previous studies have examined factors such as plate size, arrangement, and neatness, relatively little attention has been given to sauce presentation. Sauces can serve as both flavor additions and visual elements, and their placement may shape how diners perceive and interact with a dish.

To investigate these effects, researchers led by Dr. Kosuke Motoki of the Faculty of Business and Commerce, Keio University, Japan, examined how chef-designed sauce presentations influence consumers’ evaluations of a dish. The research was conducted in collaboration with Dr. Kohei Yamaguchi and Dr. Haruka Tohara of the Department of Dysphagia Rehabilitation, Institute of Science Tokyo, Japan, and Dr. Shin-ichi Ishikawa of the Department of Food Science and Business, Miyagi University, Japan, along with Chef Tatsuya Noda of the PLUM KNOT Co., Ltd., Japan. Their findings were published in Volume 15, Issue 17 of the journal Foods.

The idea for the study grew from discussions among Dr. Motoki, Dr. Yamaguchi, Dr. Ishikawa, and Chef Noda about food artistry and plating at 8go, the restaurant at Gastronomy Innovation Campus Tokyo (GIC Tokyo), where the study was later conducted. GIC Tokyo, developed in partnership with Tokyo Tatemono Co., Ltd., provides a collaborative setting for researchers, chefs, and industry partners.

“Our study involved 57 participants in a real restaurant setting at 8go, where we evaluated the same sturgeon-fritter dish presented with two different sauce arrangements. Sturgeon aquaculture is primarily oriented toward caviar production, while sturgeon meat is less commercially prominent. Its fuller use may improve resource efficiency, placing the study in a sustainability-oriented culinary context,” explains Dr. Motoki.

Participants evaluated a sturgeon-filet dish in two ways. In the minimal plating condition, sauces were placed separately on the plate, while in the drizzle presentation condition, sauces were distributed across the plate and around the food. Each participant experienced both versions, allowing the researchers to compare individual responses. The dish was prepared in collaboration with a professional chef from a restaurant recognized with a Michelin Green Star.

Before tasting, participants rated various measures including expected tastiness, perceived healthiness, intention to eat, overall liking, perceived artistic presentation, and willingness to pay. Minimal plating produced a significantly higher perceived healthiness rating than drizzle presentation: 4.65/7 compared with 4.05/7. This difference remained significant after correction for multiple comparisons.

“We observed that minimal plating made the same dish appear healthier, showing how small visual details can influence our first impressions of the food,” notes Dr. Motoki.

No significant differences were found in the other pre-tasting measures. After tasting, minimal presentation received higher ratings for overall liking and intention to eat more, but these differences did not remain significant after correction for multiple comparisons and were therefore considered preliminary.

One possible explanation for the pre-consumption healthiness finding could be visual simplicity. The minimal presentation may appear less visually dense, potentially associating it with qualities such as simplicity or naturalness.

Additionally, separately placed sauces may also give diners greater control over how much sauce they use, which could influence the eating experience. However, these mechanisms were not directly measured.

The findings offer a practical direction for evidence-based food presentation in restaurants and hospitality. “By bringing together researchers, a professional chef, and 8go as a real-world research setting within GIC Tokyo, we were able to examine how chef-designed plating shapes diners’ evaluations before and after tasting,” says Dr. Motoki. These findings show that sauce placement can help communicate a healthier impression. The preliminary post-tasting results also provide a starting point for investigating whether presentation and the way diners use the sauce may influence enjoyment.

Importantly, the researchers emphasize that looking healthier does not necessarily mean being nutritionally healthier. Further studies across different foods, plating styles, and dining environments are needed to gain deeper insights.

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Autonomy, purpose and personal control associated with entrepreneurship may outweigh its well-known stress and pressures

Creating a more entrepreneurial workplace, where employees have the freedom to make decisions, pursue ideas and see the results of their efforts, may help support engagement and well-being while avoiding some of the financial and personal risks associated with starting a business.

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Conventional wisdom suggests that the long hours and pressures of entrepreneurship can take a toll on health. But new research by Cristiano Bellavitis, associate professor in the School of Business at Stevens Institute of Technology, and his collaborators, finds that entrepreneurs tend to live longer than people who spend their careers working for others.

Drawing on more than two decades of data from over 27,000 Americans aged 50 and older, Bellavitis’s study finds that people who have engaged in entrepreneurship have approximately a 10 percent lower risk of death than non-entrepreneurs, even after accounting for factors like age, income, education and health. 

Researchers suggest that the autonomy, purpose and personal control associated with entrepreneurship may help explain the pattern and contribute to long-term well-being. 

“Most people think of entrepreneurship as extremely stressful, and it certainly can be,” Bellavitis says. “But entrepreneurship also gives people a high degree of autonomy and the opportunity to pursue something they genuinely love or care about. Our findings suggest those benefits may have lasting effects.”

Mental health appeared to be a statistically significant factor, Bellavitis notes. Entrepreneurs reported lower levels of depression and loneliness, both of which have been associated with better health outcomes and greater longevity.

The study found that the longevity advantage was the strongest among opportunity-driven entrepreneurs: individuals who launched their ventures because they wanted to start a business and pursue a promising opportunity. By contrast, people who became entrepreneurs out of necessity, such as after losing a job, did not reap the same benefits.

“What seems to matter is not entrepreneurship alone, but the circumstances under which people enter it,” Bellavitis says. “When entrepreneurship reflects greater choice and opportunity, the autonomy and sense of purpose that can come with it may provide psychological benefits that extend beyond financial rewards.”

The study titled Do Entrepreneurs Live Longer? was published in the Journal of Business Venturing on October 22, 2026. 

The researchers emphasize that while the study identifies a strong relationship between entrepreneurship and longevity, it does not prove that entrepreneurship directly causes people to live longer. However, even after controlling for numerous demographic, economic and health factors and conducting additional analysis, the relationship remains significant.

Researchers also found that longer and more frequent engagement in entrepreneurship was associated with a longer lifespan.

The findings don’t apply to entrepreneurs only, Bellavitis notes — employers can learn from them as well. Organizations can incorporate some of entrepreneurship’s benefits by giving employees greater autonomy, ownership and visibility into the impact of their work.

Creating a more entrepreneurial workplace, where employees have the freedom to make decisions, pursue ideas and see the results of their efforts, may help support engagement and well-being while avoiding some of the financial and personal risks associated with starting a business.

“In many ways, that could be the best of both worlds. Companies can foster the independence, purpose and excitement that often come with entrepreneurship while providing the stability of traditional employment,” Bellavitis says. 

He adds that “the broader lesson isn’t that everyone should quit their job and start a company.” It’s that purpose, autonomy and meaningful engagement matter. “Whether you’re an entrepreneur or an employee, finding ways to have ownership of your work and a reason to be excited about what you do every day is important for long-term well-being.”

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From click to doorstep: The hidden decisions behind e-commerce orders

Every time a shopper clicks “Place Order,” a complex process begins behind the scenes. An online retailer must decide where each item should be fulfilled, how orders should be picked and packed, how parcels should be transported, and how returns should be handled.

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Every time a shopper clicks “Place Order,” a complex process begins behind the scenes. An online retailer must decide where each item should be fulfilled, how orders should be picked and packed, how parcels should be transported, and how returns should be handled. These decisions are tightly connected: a choice made at the start can affect costs, workload, delivery speed and customer experience downstream.

In a study published in the Journal of Management Science and Engineering, Yuankai Zhang, Wei-Hua Lin, Qiong Tian and Xiangpei Hu reviewed the growing body of research on B2C online order fulfillment, including emerging omni-channel models in which physical stores can also serve as fulfillment locations.

For managers, the review provides a practical way to look beyond individual warehouse or delivery decisions and consider the entire fulfillment chain. For researchers, it identifies future directions including better coordination across stages, decision-making under uncertainty, sustainability, behavioral analytics, and the integration of artificial intelligence (AI) with digital twins and optimization.

The research papers included were published between 2007 to May 2026. The systematic search began with 1,495 records and resulted in 198 articles for detailed analysis. The authors organized the literature around the real-world fulfillment process: order assignment, warehouse operations, shipping and delivery, and return operations.

The review highlights four characteristics that make B2C fulfillment especially challenging: very large product assortments, networks with multiple fulfillment locations, personalized multi-item orders, and tight delivery time windows. It also shows how research is increasingly moving beyond isolated decisions and static planning toward more integrated and real-time approaches.

“B2C order fulfillment is not a collection of separate tasks. Decisions made at one stage can create consequences at another,” says Zhang. “By viewing the process as a connected system, we can better identify where coordination, data and new technologies can improve fulfillment decisions.”

The team also examined how data analytics, AI and emerging generative AI can support forecasting, scenario generation and operational decision-making. “Rather than replacing optimization methods, these technologies are increasingly viewed as decision-support tools that can work alongside optimization,” adds Zhang.

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