Pricing Strategy

Catalog description

Pricing is a critical marketing decision which enables a firm to translate customer value into profit. This course provides a first survey of pricing concepts. Instead of discussing pricing in isolation, we focus on the interplay between pricing and other aspects of marketing, such as positioning, branding and advertising. To this end, we provide a formal treatment of pricing concepts in the framework of game theory. Finally, we also discuss non-pricing tools that firms can use in order to capture customer value. Specifically, we cover cases wherein firms generate a profit while keeping their services free, a phenomena that is widely observed among Internet firms. This course has no formal prerequisite, but a willingness to study formal (i.e., mathematical) models is assumed. Any previous exposure to microeconomics analysis and game theory will be helpful.