ACBUS102A Artificial intelligence in the Online Retail Industry Assessment 2 Answer
ARTIFICAL INTELLENECE IN RETAIL STORE
Artificial intelligence is described as the simulation of human intelligence that is being processed by machines especially with computer systems. Therefore, through the help of Artificial intelligence devices are used to maximize the perceived value of the environment and takes actions for achieving the desired goals. The machines tend to perform the cognitive functions, which are used for solving some critical problems. Artificial intelligence effect is used to derive the required benefit for machine learning purpose. Artificial intelligence is transforming the retail industry with many options at fingertips (Brown, 2018). This is increasing the customers’ experience and to increase the use of technology. This is helping to detect fraud activities, meet the demands of the customers in an effective manner, and reduce costs, which will ultimately increase the competitiveness of the company in the marketplace. The biggest beneficiary of using Artificial intelligence is the retail industry with the infusion of superb technology and changes the operations in retail industry. Further, retail industry generates a pool of historical data about the customers to determine their needs in the most effective way. The data are used to solve critical problems, which will ultimately help in increasing the market share of the retail companies and their profit rate. Areas such as customer experience, finance, and operation can be improved tremendously. Based on this, the research shall focus on the use of Artificial intelligence in the online retail industry for determining the product price and the performance of customer orientation. Further, a discussion on the topic and recommendation will be accompanying the research.
In the retail industry, the optimal product pricing, developing, and performing according to the customer orientations are two important aspects. Due to the development of the artificial intelligence, the development of these two above-mentioned aspects can be generated and the organizations can have their benefits. The study has been generated according to the aspects defined above.
Use of AI in determining the optimal product price
The optimal product price is one of the important issues for the organizations in the retail business and the implementation of the artificial intelligence has been developed in the contemporary time, in order to generate the optimal price of the products. According to the opinion of Polasik et al. (2015), the organizations in the retail business can develop their in-house algorithm or hire any independent service providers for the artificial intelligence services that are required for determining the optimal price of the products. Models regarding the price optimization should be used by the organizations in order to ensure that the optimal price of the products would be taken from the buyers. The implementation of the models can ensure some factors associated with the success of the optimal product pricing that are mentioned below:
- A large amount of data in terms of the organization and their targeted consumer market can be analyzed at a single time. However, Ridge et al. (2015) also stated that in order to the handle those amounts of data by the individual, some unintentional errors can happen and interrupt the whole process.
- The non-linear interrelations between the products can be practiced in the process and can be ensured that the counterintuitive recommendation for the pricing of the products can be recommended.
- The routine tasks of the managers can be avoided in the process and the high level of decision-making process by the managers can be obtained successfully.
The perfect prices, rather the dynamic pricing solutions can be taken by the organizations and the managers in order to develop the price of the products at the optimum level. According to the opinion of Ziliani and Ieva, (2015), the predictive capability of the artificial intelligence services can be used for the determination of the demands and the needs of the specific products for the targeted customer segment of the organization. Therefore, at the same time, the perfect price of the product can be generated and therefore the organisation can have the benefit of dynamic pricing artificial intelligence. Apart from that, Ramasodi, (2016) stated that the organisation could have benefit of predictive pricing within the development of the artificial intelligence services. It also seen that the development of revenue management can also be improved by development of the artificial intelligence services. As the market environment in the online retail business is being changed rapidly over the time, the artificial intelligence service is being implemented in order to adjust with the changed environment of the business. At the same time, Ram et al. (2016) also opined that the business could be grown and ensure its profit in order to manage its developments through the right implementation of the artificial intelligence service. The market capitalization issue and the pricing function have been managed with the right products.
As the automated solutions are to be developed with the help of the artificial intelligence service implementation, it can be ensured that the no wastage of time can be developed with the help of it.
Performing customer orientations in online retail industry through AI
In order to perform the customer orientation, the online retail industry is using the artificial intelligence service in the recent time. It can be stated that developing the idea regarding the customer orientation should be developed in the business environment; it is required in order to understand the needs and demands of the customers in the context of the business.
As stated by Henriksen et al. (2016), the customer sales support is needed to be developed by the help of the artificial intelligence service in the online retail industry. At the same time, it is evident that the after sales support would help to enhance the reputation of the company to the customers and to enhance the customer orientation at the same time. It can also be understood that the implementation of the artificial intelligence service can help to identify the areas where the business malfunction is happening and the technicians can be sent automatically. It not only generates the development of customer satisfaction, but also orientation of the customers can be understood.
Apart from that, the prediction of the orientation of the customers can be developed as the artificial intelligence service can predict the trend of the customers buying pattern and their orientation towards the products and the services provided by the organization. The intelligent data analytics has been served by the artificial intelligence service in order to understand the buying behavior of the customers. However, in the opinion of Stanton and Stanton, (2016), the past purchases of the customers can be analyzed by the help of the artificial intelligence service and the buying pattern can be defined. It can also be evident from the opinion of Ittmann, (2015) that the predictive personalization of the products can be sent to the buyers can therefore, and the customers’ satisfaction and the customer retention rate in the organization can be ensured and increased at the same time.
The text communication can be generated with the help of the implementation of the artificial intelligence service so that the customer orientation can be developed. On the contrary, according to the statement provided by Matthias and Gregory, (2015), it is often seen that the customers are not been interested anymore to the products and the services offered by the organizations. Thus, it can be ensured that the implementation of the artificial intelligence service can help them by sending them with the latest offers from the automated information system. Thus, the customer orientation process has been generated and analyzed in order to ensure that the customer buying behavior can be influenced.
The probable ways are:
- Building digital racks for fashion products so that customers tends to find the right styles from a huge pile of goods. This will increase the shopping experience of the customers and choose from millions of options
- Building a virtual trial rooms for making swift decisions will help in decreasing the time of shopping. This will allow the shoppers to finalize a product in an easy manner
- Customer needs to be guided with the help of using Artificial intelligence analytics. This can be done with the help of placing robots and touch panels so that customers can easily locate their required product.
It can be observed that Artificial intelligence is the leading force that is helping to set agenda for better digital marketing process in the online retail industry. This will certainly increase the price determination and better customer service. This research is providing the much-needed insight into the key knowledge’s that will put insight into the use of Artificial intelligence in the retail industry. It concludes on the fact that data can be stored easily about the various activities that a customer engages himself or herself in while shopping in online retail stores. Therefore, through greater collaboration of Artificial intelligence and online retail stores, customers experience can be increased in an effective manner.