The Marketing Center Münster (MCM) recently had the pleasure of hosting Professor Anett Erdmann from ESIC University in Madrid for an insightful three-day visit. During her stay, Prof. Erdmann shared her expertise and perspectives on teaching and research with the MCM community.

As part of the Marketing Center’s Brown Bag series, Prof. Erdmann presented her groundbreaking research on the application of ChatGPT in pricing strategies. Her project, titled “Comparing Human and LLM-Derived Value-Based Pricing for Consumer Products: Can Synthetic Data Replace Real-World Survey Data?”, delves into the capabilities of Large Language Models (LLMs) to generate synthetic survey data for evaluating consumer price thresholds and determining optimal price points to stimulate demand.

Prof. Erdmann conducted seven experiments using Van Westendorp’s Price Sensitivity Meter to determine acceptable price ranges and applied the Weber-Fechner law to identify required price stimuli through synthetic data generated by LLMs. Remarkably, the synthetic data produced by LLMs showed generally comparable results to those obtained from human responses, underscoring the potential of LLMs to transform pricing practices. But contextual differences seem to matter also...

Beyond her presentation, Prof. Erdmann engaged with several faculty members, exchanging insights and experiences on various aspects of teaching methodologies, research trends, and broader academic topics. The MCM was delighted to host Prof. Erdmann and looks forward to future collaborations.