20631 - PRICING ANALYTICS
Course taught in English
Go to class group/s: 31
During the course, there are several in-class deep dives over marketing management topics, which students should already have covered during previous courses. A statistical background would also be appreciated.
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.
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.
- Know what is value pricing.
- Understand and incorporate different components into a comprehensive pricing strategy.
- Know what is price segmentation.
- Understand the psychological impact of pricing on consumer demand.
- Design and evaluate effective price promotions.
- Measure and incorporate consumer preferences using survey or market transaction data.
- Online lectures
- Guest speaker's talks (in class or in distance)
- Exercises (exercises, database, software etc.)
- Case studies /Incidents (traditional, online)
- Individual assignments
- Group assignments
The class sessions comprise lectures (60%) and in-class discussions and exercises (40%).
- There will be sessions with guest speakers 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.
- 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.
|Continuous assessment||Partial exams||General exam|
- In-Class Individual Exercises: 10%
- Group Exercises: 30%
- Final Exam (Written): 60%
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%
- 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].