About 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. 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. 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. Martin Boehm - IE Professor and Dean of the Business School with over 10 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 manipulate customers in order to drive the highest possible price for your product.
Who is this class for: This course is aimed at business-minded individuals interested in harnessing the power of pricing strategies to improve the profits of their own company or the company they are working for. A basic understanding of the principles of marketing and pricing would be an advantage but it is not essential.
Created by: IE Business School
Taught by: Martin Boehm, Professor of Marketing
Dean of IE Business School
| Basic Info | Course 2 of 5 in the Marketing Mix Implementation Specialization |
| Language | English |
| How To Pass | Pass all graded assignments to complete the course. |
| User Ratings |
Syllabus
WEEK 1
Demand Curve and Pricing
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.
12 videos, 8 readings, 3 practice quizzes
- Video: Trailer
- Video: Introduction to the course
- Video: Importance of Pricing
- Reading: The Price is Wrong
- Practice Quiz: Practice Quiz on the Importance of Pricing
- Video: Pricing Complexity
- Video: Pricing Approaches
- Reading: Traditional Approaches to Pricing
- Video: Cost Based Pricing
- Video: Cost Based Pricing Printer Example
- Reading: £1100 for a hamburger?
- Video: Competition Based Pricing
- Video: Customer Based Pricing
- Reading: Methods to Price Your Product
- Reading: Pricing Fashion with Science
- Video: Price Elasticity
- Reading: Price Elasticity of Demand
- Practice Quiz: Practice Quiz on Price Elasticity
- Video: Optimal Price
- Reading: Why the Highest Price isn’t the Best
- Reading: Pricing New Products
- Practice Quiz: Practice Quiz for Optimal Price
- Video: Expert Interviews: Felix Krohn of Wolters Kluwer
Graded: Module 1 Graded Assessment
WEEK 2
Determining Willingness to Pay
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.
9 videos, 6 readings, 1 practice quiz
- Video: The Pricing Simulation
- Reading: Link to the Pricing Simulation
- Discussion Prompt: Results of the Pricing Simulation
- Video: Price Response Estimation
- Reading: Measuring Willingness-to-Pay
- Video: Market Data
- Video: Market Data Yogurt Example
- Video: Experiments
- Reading: Price Testing
- Reading: Experiments in Pricing
- Practice Quiz: Practice Quiz on Price Experiments
- Video: Expert Surveys
- Video: Customer Surveys
- Reading: Best practices for every step of survey creation
- Video: Customer Surveys Camera Example
- Reading: A Review of Methods for Measuring Willingness-to-Pay
- Discussion Prompt: Price response estimation methods
- Video: Advanced (OPTIONAL): Conjoint Analysis
Graded: Module 2 Graded Assessment
WEEK 3
Playing the Pricing Piano or Price Discrimination
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.
11 videos, 4 readings, 1 practice quiz
- Video: What is Price Discrimination
- Reading: Price Differentiation
- Video: Forms of Price Discrimination
- Reading: Pay-per-laugh: Customers charged exactly for what they "consume"
- Video: Expert Interviews: Alejandro Hermo of Burger King
- Video: Product Versioning - Complements
- Video: Product Versioning - Substitutes
- Reading: 1000% Price Markup?
- Video: Bundling
- Video: Mixed Bundling Telecommunications Example
- Practice Quiz: Practice Quiz on Bundling
- Video: Purchase Quantity
- Video: Buyer Identification
- Video: Purchase Location
- Video: Time of Purchase
- Discussion Prompt: Applying price discrimination
- Reading: The Price You Pay Depends on Time and Day
- Peer Review: Ungraded peer-reviewed assignment on price discrimination
Graded: Module 3 Graded Assessment
WEEK 4
Pricing Psychology
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.
9 videos, 4 readings
- Video: Pricing Psychology
- Video: Pricing experiments: Price as a quality indicator
- Discussion Prompt: Product quality pricing experiments!
- Reading: Quality Perceptions, Hitting the Spot
- Video: Price Anchoring
- Reading: A Luxury Example of Anchoring
- Video: Pricing experiments: The Decoy Effect
- Video: Prospect Theory
- Video: Price Endings
- Reading: Price Endings' Field Experiments Results
- Video: The Pain of Paying
- Reading: Pain of Paying, out in the Field
- Video: Brief of the course
- Video: Ready to continue on this journey?
Graded: Module 4 Graded Assessment
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IE Business School
IE Business School is an internationally recognized business school where the leaders of tomorrow shape their ideas and learn to become global citizens. For over 40 years, IE Business School has promoted innovation and change in organizations, equipping managers with an entrepreneurial mindset that generates employment, wealth, and social well-being.
Regularly featured among the top business schools in the world, IE Business School has an urban campus in Madrid and a faculty of more than 400 professors who teach students from approximately 90 countries in its undergraduate and master programs. IE uses innovative online, face-to-face, and blended learning formats, including the IE Communities Platform where knowledge and experiences are exchanged with over 50,000 IE graduates that currently hold management positions in more than 100 countries worldwide.
Pricing
| Purchase Course | Audit | |
|---|---|---|
| Access to course materials | Available | Available |
| Access to graded materials | Available | Not available |
| Receive a final grade | Available | Not available |
| Earn a shareable Course Certificate | Available | Not available |
Ratings and Reviews
I loved. Thank you very much for the course and for making me a better professional.
Great course with a lot of examples.
It was great!!! It combines perfectly theory and practice, and uses examples in different industries. In my experience, after study a MBA, it has been a great experience, and I can apply these knowledge from the first moment.
I totally recommend it!
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PS
I didn't know how much science goes behind pricing. This course was an eye opener. Keep up the good work team.