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Jean Manuel Izaret,
Thomas Kohler,
and
Ronald T. Wilcox
How much should you charge for your products and services? Traditionally, businesses have answered this question based on the cost to produce or provide their goods and services. This course shows you the economic factors behind pricing based on cost and the pros and cons of a cost-based pricing approach. Developed at the Darden School of Business at the University of Virginia, and led by top-ranked Darden faculty and Boston Consulting Group global pricing experts, the course provides the practical and research-based models and methods you need to set prices that maximize your profits.
Read more
How much should you charge for your products and services? Traditionally, businesses have answered this question based on the cost to produce or provide their goods and services. This course shows you the economic factors behind pricing based on cost and the pros and cons of a cost-based pricing approach. Developed at the Darden School of Business at the University of Virginia, and led by top-ranked Darden faculty and Boston Consulting Group global pricing experts, the course provides the practical and research-based models and methods you need to set prices that maximize your profits.
Read more
How much should you charge for your products and services? Traditionally, businesses have answered this question based on the cost to produce or provide their goods and services. This course shows you the economic factors behind pricing based on cost and the pros and cons of a cost-based pricing approach. Developed at the Darden School of Business at the University of Virginia, and led by top-ranked Darden faculty and Boston Consulting Group global pricing experts, the course provides the practical and research-based models and methods you need to set prices that maximize your profits.
By the end of this course, you’ll be able to:
--Apply knowledge of basic economics to make better pricing decisions
--Recognize opportunities for price discrimination—selling the same product at different prices to different buyers—and recommend strategies to maximize sales and profits
--Calculate three types of price elasticities to determine the impact of price on demand
--Analyze and apply different pricing models
-Cost-plus pricing
-Marginal cost-plus pricing
-Peak-load pricing
-Index-based pricing
--Evaluate the impact of channel intermediaries and customer lifetime value on pricing
Register for this course and see more details by visiting:
OpenCourser.com/course/ed4d9u/cost
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What's inside
Syllabus
Pricing Fundamentals
Welcome to the first week of Cost and Economics in Pricing Strategy course! We'll begin our study of pricing by looking at some basic economic principles relevant to pricing, such as cost and cost variations and what that implies about the supply curve. Then we'll take a closer look at one pricing mechanism: auctions. You will never look at eBay the same!
Read more
Syllabus
Pricing Fundamentals
Welcome to the first week of Cost and Economics in Pricing Strategy course! We'll begin our study of pricing by looking at some basic economic principles relevant to pricing, such as cost and cost variations and what that implies about the supply curve. Then we'll take a closer look at one pricing mechanism: auctions. You will never look at eBay the same!
Read more
Traffic lights
Traffic lights
Read about what's good
what should give you pause and
possible dealbreakers
Provides learners strategies to capture more revenue through price control
Offers real-world, practical value
Covers common pricing models used in the industry
Emphasizes a cost-based pricing approach
Assumes basic economics knowledge
Requires understanding of cost variations
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Reviews summary
Practical economics for pricing strategy
According to learners, this course provides a solid foundation in the economic principles behind pricing decisions, going beyond traditional cost-based methods. Students found the explanations of concepts like price elasticity and price discrimination to be very clear, making complex ideas accessible. The instructors are frequently praised for being knowledgeable, engaging, and bringing real-world expertise from Darden and BCG. Many reviewers highlighted the practical application of the material and the usefulness of the case studies for seeing theory in practice. While largely positive, a few reviewers noted that the section on demand modeling and regressions could be challenging for those without a prior quantitative or statistics background.
Good introduction, may be basic for experts.
"Found this course a bit basic. As someone with a background in economics, most of the foundational concepts were already familiar."
"Probably better suited for someone new to pricing strategy."
"Provides a good foundation."
"Provides a strong base, I think supplementing this with case studies specific to your industry would be beneficial."
Knowledgeable and engaging faculty.
"The instructors were knowledgeable and engaging."
"The instructors from Darden and BCG brought real-world expertise."
"The instructors make complex topics accessible."
"The instructors are clearly experts."
Economic principles explained clearly.
"The explanations of concepts like price elasticity and marginal cost were very clear."
"The concepts are explained rigorously yet simply."
"It demystified many aspects of pricing for me."
Directly applicable strategies and insights.
"This course provided a solid foundation... The case studies were particularly useful for seeing how the theory applies in practice."
"The content... are directly applicable to my job."
"Very practical and actionable insights. ... I can immediately see how to apply these in my current role."
"Highly relevant content for my role... Very practical and well-taught."
Quantitative analysis can be difficult without prior stats.
"I found the week on elasticities and demand modeling a bit challenging, especially the regression analysis part. I don't have a strong quantitative background..."
"The section on quantitative methods... was too brief for someone without a statistics background..."
"The section on elasticity and regressions felt rushed and could have used more examples..."
"The quantitative part is probably the weakest link for many students."
Activities
Be better prepared
before
your course. Deepen your understanding
during
and
after
it. Supplement your coursework and achieve mastery of the topics covered
in Cost and Economics in Pricing Strategy with these
activities:
Review Course Materials Beforehand
Show steps
Set yourself up for success by reviewing the course syllabus, key concepts, and any pre-reading materials provided.
Browse courses on
Pricing Strategy
Show steps
-
Read through the course syllabus and make note of key topics and assignments.
-
Preview lecture notes or videos to familiarize yourself with the course content.
-
Review any pre-assigned readings or articles to gain a foundational understanding of the subject matter.
Review the Basics of Microeconomics
Show steps
Start your learning journey by brushing up on fundamental microeconomic principles, enhancing your understanding of the concepts discussed in this course.
Browse courses on
Microeconomics
Show steps
-
Revisit core principles of microeconomics, such as supply and demand, elasticity, and market equilibrium.
-
Solve practice problems related to microeconomic concepts to reinforce your understanding.
Compile a Resource List on Advanced Pricing Techniques
Show steps
Expand your knowledge beyond the course material by curating a collection of articles, videos, or other resources on cutting-edge pricing techniques.
Show steps
-
Conduct a web search or use a research database to identify relevant resources.
-
Categorize and organize the resources based on topic or technique.
-
Summarize key insights and trends from the resources in a brief report.
Five other activities
Expand to see all activities and additional details
Show all eight activities
Analyze Case Studies on Pricing Strategies
Show steps
Deepen your understanding of pricing theory by examining real-world case studies. This will help you apply concepts to practical business scenarios.
Show steps
-
Identify key elements of pricing strategies used in different case studies.
-
Analyze the impact of pricing decisions on business outcomes.
-
Develop recommendations for optimizing pricing strategies based on case study findings.
Share Your Pricing Insights with Peers
Show steps
Reinforce your understanding by actively teaching others. Engage in discussion forums, answer questions, or collaborate on projects related to pricing.
Show steps
-
Identify opportunities to participate in online forums or discussion groups.
-
Prepare responses to questions or share your thoughts on pricing-related topics.
-
Collaborate with peers on group projects or assignments that involve pricing analysis.
Connect with Pricing Experts
Show steps
Seek out professionals in the pricing field to gain insights, ask questions, and learn from their experiences.
Show steps
-
Attend industry events or webinars to connect with pricing experts.
-
Reach out to professionals on LinkedIn or other networking platforms.
-
Schedule informational interviews to learn from their career paths and expertise.
Develop a Pricing Simulation Model
Show steps
Gain hands-on experience by creating a simulation model to predict pricing outcomes. This will help you visualize and optimize pricing strategies.
Show steps
-
Identify key variables that influence pricing decisions.
-
Design a simulation model using spreadsheet software or specialized tools.
-
Run simulations to generate data on potential pricing outcomes.
-
Analyze simulation results and make recommendations for pricing optimization.
Present a Pricing Proposal to a Client
Show steps
Demonstrate your applied pricing knowledge by developing and presenting a comprehensive pricing proposal to a hypothetical client.
Show steps
-
Conduct market research to gather data on customer needs and industry benchmarks.
-
Develop a pricing strategy and supporting analysis.
-
Create a presentation that clearly articulates your pricing proposal.
-
Present your proposal to a mock client or receive feedback from peers.
Review Course Materials Beforehand
Show steps
Set yourself up for success by reviewing the course syllabus, key concepts, and any pre-reading materials provided.
Browse courses on
Pricing Strategy
Show steps
Show steps
Show steps
- Read through the course syllabus and make note of key topics and assignments.
- Preview lecture notes or videos to familiarize yourself with the course content.
- Review any pre-assigned readings or articles to gain a foundational understanding of the subject matter.
Review the Basics of Microeconomics
Show steps
Start your learning journey by brushing up on fundamental microeconomic principles, enhancing your understanding of the concepts discussed in this course.
Browse courses on
Microeconomics
Show steps
Show steps
Show steps
- Revisit core principles of microeconomics, such as supply and demand, elasticity, and market equilibrium.
- Solve practice problems related to microeconomic concepts to reinforce your understanding.
Compile a Resource List on Advanced Pricing Techniques
Show steps
Expand your knowledge beyond the course material by curating a collection of articles, videos, or other resources on cutting-edge pricing techniques.
Show steps
Show steps
Show steps
- Conduct a web search or use a research database to identify relevant resources.
- Categorize and organize the resources based on topic or technique.
- Summarize key insights and trends from the resources in a brief report.
Five other activities
Expand to see all activities and additional details
Show all eight activities
Analyze Case Studies on Pricing Strategies
Show steps
Deepen your understanding of pricing theory by examining real-world case studies. This will help you apply concepts to practical business scenarios.
Show steps
Show steps
Show steps
- Identify key elements of pricing strategies used in different case studies.
- Analyze the impact of pricing decisions on business outcomes.
- Develop recommendations for optimizing pricing strategies based on case study findings.
Share Your Pricing Insights with Peers
Show steps
Reinforce your understanding by actively teaching others. Engage in discussion forums, answer questions, or collaborate on projects related to pricing.
Show steps
Show steps
Show steps
- Identify opportunities to participate in online forums or discussion groups.
- Prepare responses to questions or share your thoughts on pricing-related topics.
- Collaborate with peers on group projects or assignments that involve pricing analysis.
Connect with Pricing Experts
Show steps
Seek out professionals in the pricing field to gain insights, ask questions, and learn from their experiences.
Show steps
Show steps
Show steps
- Attend industry events or webinars to connect with pricing experts.
- Reach out to professionals on LinkedIn or other networking platforms.
- Schedule informational interviews to learn from their career paths and expertise.
Develop a Pricing Simulation Model
Show steps
Gain hands-on experience by creating a simulation model to predict pricing outcomes. This will help you visualize and optimize pricing strategies.
Show steps
Show steps
Show steps
- Identify key variables that influence pricing decisions.
- Design a simulation model using spreadsheet software or specialized tools.
- Run simulations to generate data on potential pricing outcomes.
- Analyze simulation results and make recommendations for pricing optimization.
Present a Pricing Proposal to a Client
Show steps
Demonstrate your applied pricing knowledge by developing and presenting a comprehensive pricing proposal to a hypothetical client.
Show steps
Show steps
Show steps
- Conduct market research to gather data on customer needs and industry benchmarks.
- Develop a pricing strategy and supporting analysis.
- Create a presentation that clearly articulates your pricing proposal.
- Present your proposal to a mock client or receive feedback from peers.
Career center
Learners who complete Cost and Economics in Pricing Strategy will develop knowledge and skills
that may be useful to these careers:
Pricing Analyst
Pricing Analyst
A Pricing Analyst is a professional who analyzes pricing data to identify trends and patterns. They may also be responsible for developing and implementing pricing strategies. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
Revenue Manager
Revenue Manager
A Revenue Manager is a professional who is responsible for maximizing revenue for a business. They may also be responsible for developing and implementing pricing strategies. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
Portfolio Manager
Portfolio Manager
A Portfolio Manager is a professional who manages investments for individuals and institutions. They may also be responsible for developing and implementing pricing strategies. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
Consultant
Consultant
A Consultant is a professional who provides advice and guidance to businesses on a variety of topics, including pricing strategy. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
Financial Analyst
Financial Analyst
A Financial Analyst is a professional who analyzes financial data to make investment recommendations. They may also be responsible for developing and implementing pricing strategies. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
Investment Banker
Investment Banker
An Investment Banker is a professional who provides financial advice to businesses and governments. They may also be responsible for developing and implementing pricing strategies. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
Product Manager
Product Manager
A Product Manager is a professional who is responsible for the development and marketing of a product. They may also be responsible for developing and implementing pricing strategies. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
Account Manager
Account Manager
An Account Manager is a business professional who manages relationships with clients and ensures that their needs are met. They may also be responsible for developing and implementing pricing strategies. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
Supply Chain Manager
Supply Chain Manager
A Supply Chain Manager is a professional who is responsible for the planning, execution, and control of the supply chain. They may also be responsible for developing and implementing pricing strategies. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
Business Analyst
Business Analyst
A Business Analyst is a professional who analyzes business processes and systems to identify areas for improvement. They may also be responsible for developing and implementing pricing strategies. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
Data Analyst
Data Analyst
A Data Analyst is a professional who collects, analyzes, and interprets data to identify trends and patterns. They may also be responsible for developing and implementing pricing strategies. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
Marketer
Marketer
A Marketer is a professional who develops and executes marketing campaigns to promote products and services. They may also be responsible for developing and implementing pricing strategies. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
Operations Manager
Operations Manager
An Operations Manager is a professional who oversees the day-to-day operations of a business. They may also be responsible for developing and implementing pricing strategies. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
Project Manager
Project Manager
A Project Manager is a professional who is responsible for the planning, execution, and completion of a project. They may also be responsible for developing and implementing pricing strategies. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
Sales Manager
Sales Manager
A Sales Manager is a professional who is responsible for leading and managing a sales team. They may also be responsible for developing and implementing pricing strategies. The Cost and Economics in Pricing Strategy course can help you develop the skills you need to be successful in this role by providing you with a deep understanding of the economic factors that affect pricing. You will also learn how to analyze and apply different pricing models to maximize profits.
For more career information including salaries, visit:
OpenCourser.com/course/ed4d9u/cost
Reading list
We've selected ten books
that we think will supplement your
learning. Use these to
develop background knowledge, enrich your coursework, and gain a
deeper understanding of the topics covered in
Cost and Economics in Pricing Strategy.
By pricing expert Hermann Simon provides a comprehensive framework for understanding and implementing pricing strategies. It covers topics such as value-based pricing, price segmentation, and competitive bidding.
This classic book on pricing strategy provides a comprehensive framework for analyzing pricing decisions and developing pricing tactics. It covers topics such as cost-plus pricing, value pricing, and competitive pricing.
Save
Provides a comprehensive overview of pricing strategies, including cost-plus pricing, value pricing, and competitive pricing. It also covers topics such as pricing for profit, pricing in different markets, and pricing for new products.
This textbook provides a comprehensive overview of managerial economics, including pricing strategies. It covers topics such as demand analysis, cost analysis, and profit maximization.
This textbook provides a comprehensive overview of pricing theory and practice. It covers topics such as cost-plus pricing, value pricing, and competitive pricing.
Save
This introductory textbook provides the foundational knowledge of microeconomic theory necessary for understanding pricing strategies. It covers concepts such as supply and demand, market structures, and consumer behavior.
Provides an introduction to revenue optimization, focusing on the use of data and analytics to improve pricing decisions. It covers topics such as demand forecasting, price optimization, and revenue management.
Save
Provides a fascinating look at the science of pricing, exploring the psychological and economic factors that influence consumer pricing decisions.
This introductory textbook provides a broad overview of economic principles, including microeconomic concepts such as pricing and market structures.
This practical guide to pricing provides step-by-step instructions on creating a pricing strategy that maximizes profits. It covers topics such as target costing, price bundling, and psychological pricing.
For more information about how these books relate to this course, visit:
OpenCourser.com/course/ed4d9u/cost
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Rating
4.8
Effort
Approx. 12 hours
Level
Introductory
Via
Coursera
Institutions
University of Virginia
BCG
Instructors
Jean Manuel Izaret
Thomas Kohler
Ronald T. Wilcox
Language
English
Transcripts
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آذربایجان دیلی
This course belongs to a
collection
called
Pricing Strategy Optimization. It's comprised of four courses:
- Pricing Strategy in Practice
- Cost and Economics in Pricing Strategy (viewing)
- Customer Value in Pricing Strategy
- Market and Competition in Pricing Strategy
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