Pricing

Catalog description

Price setting is probably the most critical of all marketing mix decisions. It involves an understanding of both supply side factors (e.g. costs) and demand side factors (e.g. consumer willingness to pay). While traditional approaches to pricing theory have revolved around an economic and financial framework, a broader and more pragmatic view entails a comprehensive understanding of the demand side; both at the level of individual customer values, and the more aggregate level of price sensitivities of the market. In this course, we will approach the pricing decision as an intersection of economic, strategic, and behavioral considerations. Using product categories as diverse as healthcare, entertainment, cell phone plans, electronic road pricing, consumer packaged goods, cloud services and durable goods, we will study economic and behavioral approaches to pricing, value-based pricing, price discrimination/customization, bundling, versioning, add-on pricing, subscription pricing, dynamic pricing, durable goods pricing, yield management, freemium pricing, and pricing in two-sided markets. Upon successful completion of this course, you will: Be familiar with the concepts, theory and latest thinking on pricing strategy, Learn the state-of-the-art framework for analyzing pricing issues, Gain a solid understanding of pricing practices across different industries, and Master the essential techniques for making profitable pricing decisions with strategic thinking.