Abstract
Dynamic pricing has a long tradition in the service sector and has been extensively discussed across a wide range of studies, characterized by considerable methodological and contextual diversity. In recent years, however, technological advancement and digitalization have further transformed its implementation and strategic relevance. Therefore, this systematic literature review synthesizes 104 studies on dynamic, algorithmic, and AI-driven pricing strategies in service contexts. Based on an extensive literature search of databases across different service contexts, the study identifies three overarching implementation challenges: technical infrastructure and data quality, organizational readiness and cultural resistance, and consumer and market challenges. While these pricing strategies yield substantial revenue improvements across sectors, they simultaneously generate significant consumer fairness and trust concerns that threaten long-term competitive advantage. The findings further show that successful implementation requires not merely technical sophistication but a holistic approach balancing algorithmic optimization with transparent communication, consumer trust preservation, and equitable consumer access considerations. By synthesizing the literature, the study shows interdependencies among organizational, technical, and consumer dimensions, providing actionable guidance for practitioners and identifying critical avenues for future research.
