Pricing Strategy

Instructor: Martin Boehm

Beginner Level • 3 hours to complete • Flexible Schedule

What You'll Learn

  • Know the pricing approach for a product or service and consider the pricing psychology effects on the perception of quality.
  • Learn how to make a price discrimination based on customer characteristics and using purchase quantity, bundling and product versioning.
  • Discover the willingness to pay or price response of customers using surveys, experiments and market data.
  • Calculate the price elasticity for a given product or service and find out which is its optimal price.

Skills You'll Gain

Cost Accounting
Strategic Marketing
Price Negotiation
Market Dynamics
Product Strategy
Profit and Loss (P&L) Management
Customer Insights
Competitive Analysis
Customer Analysis
Business Marketing
Revenue Management
Consumer Behaviour
Market Research
Marketing Psychology

Shareable Certificate

Earn a shareable certificate to add to your LinkedIn profile

Outcomes

  • Learn new concepts from industry experts
  • Gain a foundational understanding of a subject or tool
  • Develop job-relevant skills with hands-on projects
  • Earn a shareable career certificate

There are 4 modules in this course

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.

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.

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.

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.