Gartner Warns: Dynamic Pricing May Undermine Consumer Trust if Poorly Managed

Gartner is sounding the alarm on dynamic pricing practices in retail and CPG, cautioning that aggressive or opaque price fluctuations may erode consumer trust — even as companies lean into real-time pricing models to stay competitive.

The firm’s latest research shows that while dynamic pricing can help brands respond to demand shifts, inventory levels, and competitor moves, consumers are becoming increasingly wary of inconsistent or algorithm-driven pricing that feels unfair or unpredictable. In particular, repeat customers and value-conscious shoppers are more likely to disengage if pricing lacks transparency or appears discriminatory.

Gartner recommends CPGs and retailers implement clear guardrails, test for fairness perception, and communicate pricing logic where possible. Dynamic pricing, it notes, should optimize value — not just margin — if companies want to preserve brand loyalty in a data-driven marketplace.

corpbrief insight:

AI can price to the penny, but loyalty is built in trust. Gartner’s warning makes it clear: pricing power is meaningless if consumers walk away from the shelf.