Pricing Strategies

This course considers the theory and practice of setting prices. Throughout the course, we brought together economic frameworks and models of marketing and consumer behavior to analyze different pricing frameworks (e.g., value pricing, cost-plus) and tactics (segmentation, bundling). Pricing examples from various industries and legal aspects of pricing also were discussed.
In this course, we studied the factors to be considered when setting and changing prices and learned how pricing strategies are developed. The course objectives were to formulate, construct, and assess
pricing strategies. The pricing decision process depends on economic, marketing, and behavioral phenomena. Each of these perspectives provided unique insights into the pricing decisions that we must
consider. While the emphasis of this course was on one component of the marketing mix (i.e., pricing), it was
important to keep in mind that pricing is not independent of other marketing decisions. An important
challenge in this course was to integrate the pricing into the overall marketing strategy and marketing mix
and evaluate its effectiveness in achieving broader managerial objectives. At the end of the day, however, effective pricing provides value for all parties involved. As such, we focused on what is called
the Value Price Framework and spent a significant amount of time discussing the psychology of pricing based on a consumer perspective and how managers can use this knowledge in developing and implementing their pricing strategies.