Pricing Strategy
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Pricing Strategy
This course is part of Marketing Mix Implementation Specialization
Instructor: Martin Boehm
54,357 already enrolled
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1,079 reviews
1,079 reviews
What you'll learn
Know the pricing approach for a product or service and consider the pricing psychology effects on the perception of quality.
Learn how to make a price discrimination based on customer characteristics and using purchase quantity, bundling and product versioning.
Discover the willingness to pay or price response of customers using surveys, experiments and market data.
Calculate the price elasticity for a given product or service and find out which is its optimal price.
Details to know
10 assignments
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There are 4 modules in this course
Pricing is one of the most important but least understood marketing decisions. Learn and practice concepts, techniques, and get to grips with the latest thinking on assessing and formulating pricing strategies. Analyze how firms attempt to capture value, as well as profits, in the revenues they earn.
Along this course, you will learn pricing strategy key concepts such as pricing psychology, price discrimination, willingness to pay of customers, optimal price and price elasticity. This course has an additional focus on pricing dynamics and the reaction to and by competitors, taking a highly pragmatic approach and one that is directly applicable to your day-to-day professional life. After this course, you will be able to contribute to the process of formulating pricing strategies for your own products and services, or those of your firm. Martin Boehm - IE Professor and former Dean of the Business School with over 20 years experience - will guide you through four modules. We begin with the importance of pricing and how it ultimately can affect the bottom line. Then, we move on to methods to help you decide what is the optimal price for your product; and then price discrimination - should all your products follow the same pricing strategy or should you differentiate depending on the customer segment? Finally, we look at pricing psychology and how you can influence customers in order to drive the highest possible price for your product.
In this module we will start with the importance of pricing, especially for the bottom line. Having this in mind, and after showing how pricing is the most important driver of profitability, when you finish this module you will be able to execute cost, competition and customer-based pricing. You will also be able to use the concepts of price elasticity and optimal price while setting prices for your products and services.
What's included
12 videos7 readings4 assignments
12 videos•Total 51 minutes
- Trailer•1 minute
- Introduction to the Course•3 minutes
- Importance of Pricing•5 minutes
- Pricing Complexity•4 minutes
- Pricing Approaches•3 minutes
- Cost Based Pricing•4 minutes
- Cost Based Pricing Printer Example•4 minutes
- Competition Based Pricing•3 minutes
- Customer Based Pricing•5 minutes
- Price Elasticity•7 minutes
- Optimal Price•3 minutes
- Expert Interviews: Felix Krohn of Wolters Kluwer•11 minutes
7 readings•Total 64 minutes
- How to Price Your Products•10 minutes
- 12 Techniques For Selecting The Right Pricing Strategy•9 minutes
- Spanish restaurant unveils world’s most expensive burger priced at $11,000•10 minutes
- Methods to Price Your Product•10 minutes
- Pricing Fashion with Science•10 minutes
- Price Elasticity •5 minutes
- Why Pricing Is so crucial to get right In a Launch•10 minutes
4 assignments•Total 57 minutes
- Module 1 Graded Assessment•35 minutes
- Practice Quiz on the Importance of Pricing•3 minutes
- Practice Quiz on Price Elasticity•15 minutes
- Practice Quiz: Determining the Optimal Price•4 minutes
After finishing this module you will be able to take advantage of four different methods to determine the willingness to pay from customers. Whether using Market Data or Experiments (Observation based) or Expert or Customer Surveys (Survey based), you'll be able to use this information in order to identify the optimal price.
What's included
9 videos6 readings2 assignments1 app item1 discussion prompt
9 videos•Total 53 minutes
- The Pricing Simulation•1 minute
- Price Response Estimation•3 minutes
- Market Data•2 minutes
- Market Data Yogurt Example•5 minutes
- Experiments•7 minutes
- Expert Surveys•4 minutes
- Customer Surveys•8 minutes
- Customer Surveys Camera Example•5 minutes
- Advanced Conjoint Analysis•19 minutes
6 readings•Total 135 minutes
- Willingness to pay – definition and meaning•10 minutes
- Measuring Willingness-to-Pay•50 minutes
- Experiments in Pricing•10 minutes
- Best practices for every step of survey creation•5 minutes
- 15 Best Online Survey Tools and Apps•10 minutes
- A Review of Methods for Measuring Willingness-to-Pay•50 minutes
2 assignments•Total 33 minutes
- Module 2 Graded Assessment•30 minutes
- Practice Quiz on Price Experiments•3 minutes
1 app item•Total 60 minutes
- Link to the Pricing Simulation•60 minutes
1 discussion prompt•Total 10 minutes
- Results of the Pricing Simulation•10 minutes
What we see in the real world is that companies don't only charge one price for all their products, but rather set different prices for different products with respect to different customer segments. After looking at the benefits of price discrimination (and the significant revenue and profit potential behind it), you will be able to figure out what type and how to implement price discrimination for your products and services.
What's included
11 videos2 readings3 assignments
11 videos•Total 75 minutes
- What is Price Discrimination•6 minutes
- Forms of Price Discrimination•4 minutes
- Expert Interviews: Alejandro Hermo of Burger King•12 minutes
- Product Versioning - Complements•5 minutes
- Product Versioning - Substitutes•6 minutes
- Bundling•13 minutes
- Mixed Bundling Telecommunications Example•8 minutes
- Purchase Quantity•9 minutes
- Buyer Identification•3 minutes
- Purchase Location•2 minutes
- Time of Purchase•6 minutes
2 readings•Total 25 minutes
- Investopedia: What is Price Discrimination•15 minutes
- Pay-per-laugh: Customers charged exactly for what they "consume"•10 minutes
3 assignments•Total 55 minutes
- Module 3 Graded Assessment•35 minutes
- Practice Quiz on Bundling•5 minutes
- Price Discrimination•15 minutes
In this final module we will look at pricing psychology. You will then be able to "manipulate" customers so they perceive a higher value in the products and services that you deliver, or so that they feel less pain by paying the price of purchasing your products. You will have in your toolkit multiple ways to maximize your sales, revenues, and profitability. We will also conduct a couple of experiments with volunteer customers to see how price affects perceptions, and how you can profit from it.
What's included
9 videos3 readings1 assignment
9 videos•Total 36 minutes
- Pricing Psychology•3 minutes
- Pricing experiments: Price as a quality indicator•3 minutes
- Price Anchoring•6 minutes
- Pricing experiments: The Decoy Effect•3 minutes
- Prospect Theory•6 minutes
- Price Endings•4 minutes
- The Pain of Paying•7 minutes
- Brief of the course•3 minutes
- Ready to continue on this journey?•1 minute
3 readings•Total 55 minutes
- Psychological Pricing: 4 Strategies, Examples and Tactics•10 minutes
- Price Endings' Field Experiments Results•40 minutes
- Pain of Paying – Everything You Need to Know•5 minutes
1 assignment•Total 40 minutes
- Module 4 Graded Assessment•40 minutes
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Reviewed on Sep 19, 2020
I have been working in sales for the last 10 years, though I have learned many tricks of the trade while working, this program gave me more insights into the pricing strategy
Reviewed on Jun 20, 2017
In my opinion it is the best course in the specialization. Excellent sources articles and book to study and expand the price knowledge. The course gave enough encouragement to learn more.
Reviewed on May 3, 2016
The lessons are valuable. My issue is that when I passed the quiz, I was unsure which 2 I got wrong and wanted to know for my own information. Thank you
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