Exploring consumer perceptions of algorithmic price discrimination in Indian E-Commerce: Mediating and moderating perspectives analysis
DOI:
https://doi.org/10.64092/t6k35d70Keywords:
Algorithmic price discrimination, E-Commerce Platforms, customer perceptions, perceived exploitationAbstract
E-commerce platforms in India have undergone rapid transformation while increasingly adopting algorithmic price discrimination practices. This form of price discrimination relies on artificial intelligence and data-driven technologies to set personalized prices based on consumers' browsing behavior, purchase history, geographic location, and other online activities. The purpose of this study is to examine how algorithmic price discrimination influences consumer perceptions of e-commerce platforms in India, considering perceived exploitation as a mediating variable and digital literacy as a moderating variable. A quantitative research approach was employed, and data were collected from 150 online consumers through a structured questionnaire. The data were subsequently analyzed using SPSS and AMOS through descriptive statistics and structural equation modeling. The findings indicate that the use of pricing algorithms negatively affects consumers' perceptions of pricing fairness and contributes to a sense of exploitation by firms, with perceived exploitation serving as a mediating mechanism in this relationship. Furthermore, the study demonstrates that among the dimensions of digital literacy, consumers' knowledge of personalized pricing practices and algorithmic decision-making moderates the impact of algorithmic price discrimination on consumer perceptions. Individuals with a higher level of understanding of these mechanisms interpret algorithmic price discrimination practices differently from those with lower levels of digital literacy.
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