Course 2019-2020 a.y.


Department of Marketing

Course taught in English
Go to class group/s: 31
IM (6 credits - I sem. - OP  |  SECS-P/08)
Course Director:

Classes: 31 (I sem.)

Class-group lessons delivered  on campus

Suggested background knowledge

During the course, there are several in-class exercise sessions in which students gain hands-on experience solving pricing problems on their laptops. During these sessions, the students make extensive use of spreadsheet applications, such as Microsoft Excel (with the Analysis ToolPak add‐in). For this reason, to get the most out of the course, attendance is highly recommended. Also, students are expected to have completed statistical and empirical courses and have a basic knowledge of linear regressions and t-tests. This helps the students gain a more insightful understanding of the course material.

Mission & Content Summary


Pricing represents one of the most powerful levers for maximizing profits and shareholder value. The objectives for this course are: (1) To familiarize you with the concepts, theory, and latest thinking bearing on the key issues in pricing, drawn from a mixture of fields (economics, psychology and statistics etc.). (2) To provide you with an opportunity to apply theory and frameworks to the solution of pricing problems in a variety of business contexts. This involves working through an application of modelling techniques to an analysis of either primary (i.e., survey) or secondary data such as consumer transaction data. (3) To provide you with a forum in which you may further develop your business communication skills and receive feedback from your peers and the instructor.


The contents of this course comprises theory, concepts and frameworks relevant to pricing, and empirical methodoliges and their applications to real-world datasets. The topics include but are not limited to:

  • Value-based pricing and economic value to the customer (EVC).
  • Price and value communication.
  • Psychology of pricing.
  • Pricing game and strategic responses.
  • Market response model and measuring price elasticities.
  • Conjoint analysis.
  • Trade promotions and channel management.

Intended Learning Outcomes (ILO)


At the end of the course student will be able to...
  • What is value pricing?
  • How to understand and incorporate different components into a comprehensive pricing strategy?
  • What is price segmentation?
  • How to understand the psychological impact of pricing on consumer demand?


At the end of the course student will be able to...
  • How to design and evaluate effective price promotions?
  • How to measure and incorporate consumer preferences using survey or market transaction data?

Teaching methods

  • Face-to-face lectures
  • Guest speaker's talks (in class or in distance)
  • Exercises (exercises, database, software etc.)
  • Individual assignments
  • Group assignments
  • Interactive class activities (role playing, business game, simulation, online forum, instant polls)


The class sessions comprise lectures (60%) and in-class discussions and exercises (40%).

  • There is a session with a guest speaker to complement the teaching by offering a chance to hear additional insights from managers. The goal of the discussions and exercises is to apply important pricing concepts and frameworks to different business contexts and to provide students with hands-on practice in making relevant pricing decisions based on both qualitative and quantitative data. For in-class exercises, students are asked to bring a computer with Excel (make sure the Analysis ToolPak add-in is installed) and they analyse the data and discuss analysis output under a guidance of the instructor.
  • There are 3 individual assignments (depending on the final class size, one of these may form a group assignment):
    • Quantifying the customer lifetime value (CLV).
    • Measuring price elasticities using market data.
    • Evaluating price promotions for retailers.
  • There is 1 group assignment for this course: market demand simulation through conjoint analysis.

Assessment methods

  Continuous assessment Partial exams General exam
  • Written individual exam (traditional/online)
  • Individual assignment (report, exercise, presentation, project work etc.)
  • Group assignment (report, exercise, presentation, project work etc.)
  • Active class participation (virtual, attendance)


  • Attendance: 10%
  • In-Class Individual Exercises: 30%
  • Group Exercises: 20%
  • Final Exam (Written): 40%

Note: The exam for attending students is only  available on the first two exam dates; after the second exam date, only the non-attending exam is available.


Final Exam (Written): 100%

Teaching materials


  • All material discussed and distributed in class (slides, articles, hand-outs etc. are available via Bboard).
  • T. NAGLE, J. HOGAN, J. ZALE, The Strategy and Tactics of Pricing, 5th Edition [Corresponding chapters, to be communicated in class].


  • T. NAGLE, J. HOGAN, J. ZALE, The Strategy and Tactics of Pricing, 5th Edition  [All chapters].
Last change 16/06/2019 21:04