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Course 2021-2022 a.y.

20631 - PRICING ANALYTICS

Department of Marketing

Course taught in English

Go to class group/s: 31

IM (6 credits - I sem. - OP  |  SECS-P/08)
Course Director:
SUNGTAK HONG

Classes: 31 (I sem.)
Instructors:
Class 31: SUNGTAK HONG


Suggested background knowledge

During the course, there are several in-class exercise sessions in which students gain hands-on experience analyzing real-world data sets 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, to feel comfortable in this course students should be familiar with contents of statistical or empirical course in which they gained 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
MISSION

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.

CONTENT SUMMARY

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.
  • Market response model and measuring price elasticities.
  • Field experiment to quantify the price promotion effects.
  • Conjoint analysis.
  • Trade promotions and channel management.

Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...

By the end of the course, students will have learned:

 

 

  • What is value pricing.
  • How to understand and incorporate different components into a comprehensive pricing strategy.
  • What is price segmentation.

 

APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...

By the end of the course, students will have learned: 

 

  • How to design and evaluate effective price promotions.
  • How to understand the psychological impact of pricing on consumer demand.
  • How to measure consumer preference and price sensitivity using survey or market transaction data.

Teaching methods
  • 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
DETAILS

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 and the nature of online classes, 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)
  •     x
  • Individual assignment (report, exercise, presentation, project work etc.)
  • x    
  • Group assignment (report, exercise, presentation, project work etc.)
  • x    
    ATTENDING STUDENTS
    • In-Class Individual Exercises: 30%
    • Group Exercises: 20%
    • Final Exam (Written): 50%

     

    The Group Exercises and the in-class individual exercises assess students’ ability to apply the methods learned during the course.  

    The written exam includes questions referring to cases, talks and related concepts, models and tools presented and discussed in class.

     

    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.

    NOT ATTENDING STUDENTS

    Final Exam (Written): 100%

     

    The questions are aimed at verifying the ability to apply the knowledge students learned when studying the teaching material.  

      

      


    Teaching materials
    ATTENDING STUDENTS
    • All material discussed and distributed in class (slides, articles, hand-outs etc. will be available via Bboard).
    • T. NAGLE, J. HOGAN, J. ZALE, The Strategy and Tactics of Pricing, 5th Edition [Corresponding chapters, to be communicated in class].
    NOT ATTENDING STUDENTS
    • T. NAGLE, J. HOGAN, J. ZALE, The Strategy and Tactics of Pricing, 5th Edition  [All chapters].
    Last change 19/07/2021 06:46