Pricing Strategy

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Pricing Strategy

This course is part of Marketing Mix Implementation Specialization

Instructor: Martin Boehm

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4 modules

Gain insight into a topic and learn the fundamentals.

1,079 reviews

Beginner level

No prior experience required

Flexible schedule

1 week at 10 hours a week

Learn at your own pace

90%

Most learners liked this course

4 modules

Gain insight into a topic and learn the fundamentals.

1,079 reviews

Beginner level

No prior experience required

Flexible schedule

1 week at 10 hours a week

Learn at your own pace

90%

Most learners liked this course

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

Details to know

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Assessments

10 assignments

Taught in English

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This course is part of the Marketing Mix Implementation Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

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Earn a shareable career certificate

There are 4 modules in 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.

Along this course, you will learn pricing strategy key concepts such as pricing psychology, price discrimination, willingness to pay of customers, optimal price and price elasticity. 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. 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. Martin Boehm - IE Professor and former Dean of the Business School with over 20 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 influence customers in order to drive the highest possible price for your product.

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.

What's included

12 videos7 readings4 assignments

12 videosTotal 51 minutes

Trailer1 minute
Introduction to the Course3 minutes
Importance of Pricing5 minutes
Pricing Complexity4 minutes
Pricing Approaches3 minutes
Cost Based Pricing4 minutes
Cost Based Pricing Printer Example4 minutes
Competition Based Pricing3 minutes
Customer Based Pricing5 minutes
Price Elasticity7 minutes
Optimal Price3 minutes
Expert Interviews: Felix Krohn of Wolters Kluwer11 minutes

7 readingsTotal 64 minutes

How to Price Your Products10 minutes
12 Techniques For Selecting The Right Pricing Strategy9 minutes
Spanish restaurant unveils world’s most expensive burger priced at $11,00010 minutes
Methods to Price Your Product10 minutes
Pricing Fashion with Science10 minutes
Price Elasticity 5 minutes
Why Pricing Is so crucial to get right In a Launch10 minutes

4 assignmentsTotal 57 minutes

Module 1 Graded Assessment35 minutes
Practice Quiz on the Importance of Pricing3 minutes
Practice Quiz on Price Elasticity15 minutes
Practice Quiz: Determining the Optimal Price4 minutes

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's included

9 videos6 readings2 assignments1 app item1 discussion prompt

9 videosTotal 53 minutes

The Pricing Simulation1 minute
Price Response Estimation3 minutes
Market Data2 minutes
Market Data Yogurt Example5 minutes
Experiments7 minutes
Expert Surveys4 minutes
Customer Surveys8 minutes
Customer Surveys Camera Example5 minutes
Advanced Conjoint Analysis19 minutes

6 readingsTotal 135 minutes

Willingness to pay – definition and meaning10 minutes
Measuring Willingness-to-Pay50 minutes
Experiments in Pricing10 minutes
Best practices for every step of survey creation5 minutes
15 Best Online Survey Tools and Apps10 minutes
A Review of Methods for Measuring Willingness-to-Pay50 minutes

2 assignmentsTotal 33 minutes

Module 2 Graded Assessment30 minutes
Practice Quiz on Price Experiments3 minutes

1 app itemTotal 60 minutes

Link to the Pricing Simulation60 minutes

1 discussion promptTotal 10 minutes

Results of the Pricing Simulation10 minutes

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.

What's included

11 videos2 readings3 assignments

11 videosTotal 75 minutes

What is Price Discrimination6 minutes
Forms of Price Discrimination4 minutes
Expert Interviews: Alejandro Hermo of Burger King12 minutes
Product Versioning - Complements5 minutes
Product Versioning - Substitutes6 minutes
Bundling13 minutes
Mixed Bundling Telecommunications Example8 minutes
Purchase Quantity9 minutes
Buyer Identification3 minutes
Purchase Location2 minutes
Time of Purchase6 minutes

2 readingsTotal 25 minutes

Investopedia: What is Price Discrimination15 minutes
Pay-per-laugh: Customers charged exactly for what they "consume"10 minutes

3 assignmentsTotal 55 minutes

Module 3 Graded Assessment35 minutes
Practice Quiz on Bundling5 minutes
Price Discrimination15 minutes

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.

What's included

9 videos3 readings1 assignment

9 videosTotal 36 minutes

Pricing Psychology3 minutes
Pricing experiments: Price as a quality indicator3 minutes
Price Anchoring6 minutes
Pricing experiments: The Decoy Effect3 minutes
Prospect Theory6 minutes
Price Endings4 minutes
The Pain of Paying7 minutes
Brief of the course3 minutes
Ready to continue on this journey?1 minute

3 readingsTotal 55 minutes

Psychological Pricing: 4 Strategies, Examples and Tactics10 minutes
Price Endings' Field Experiments Results40 minutes
Pain of Paying – Everything You Need to Know5 minutes

1 assignmentTotal 40 minutes

Module 4 Graded Assessment40 minutes

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Instructor

Instructor ratings

(139 ratings)

Martin Boehm

IE Business School

2 Courses70,373 learners

Offered by

IE Business School

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Reviewed on Jan 30, 2019

I am small hotel owner. This course really changed my attitude and perception towards pricing. I hope the knowledge I gained in this course is going to help me a lot. Thank you .

Reviewed on Jun 11, 2016

Great course. All the concepts were clearly explained. They had provided plenty of case studies, articles, journals and books to read. The content delivery was great. I found it very useful.

Reviewed on Dec 28, 2021

It's not easy for a non-commerce background person to understand the terminolgies and how the tallies work. The videos ignore this fact. Otherwise it's informative if understood properly.

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Frequently asked questions

To access the course materials, assignments and to earn a Certificate, you will need to purchase the Certificate experience when you enroll in a course. You can try a Free Trial instead, or apply for Financial Aid. The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.

When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile.

Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.