About this course: 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. Led by 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

Who is this class for: This course is designed for business professionals and those aspiring to a career in marketing.

Created by: University of Virginia, BCG

Taught by: Jean Manuel Izaret, Senior Partner and Managing Director, Leader of BCG’s Global Pricing Practice
Taught by: Thomas Kohler, Associate Director, Pricing
Marketing, Sales & Pricing Practice
Taught by: Ronald T. Wilcox, NewMarket Corporation Professor of Business Administration & Senior Associate Dean for Degree Programs
Marketing

Basic Info	Course 1 of 4 in the Pricing Strategy Optimization Specialization.
Level	Beginner
Commitment	4 weeks of study; 3-4 hours/week
Language	English
How To Pass	Pass all graded assignments to complete the course.
User Ratings	4.9 stars Average User Rating 4.9See what learners said

Syllabus

WEEK 1

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 w...

13 videos, 4 readings, 2 practice quizzes

Graded: Week 1 Pricing Fundamentals Quiz

WEEK 2

Price Discrimination

This week we'll tackle three areas that will help you improve the effectiveness of your pricing strategy. First, we'll take a look at price discrimination and how to set prices for different customer segments to maximize profits. You'll learn about the price a...

12 videos, 1 reading, 2 practice quizzes

Graded: Quiz on the Heinz Case

Graded: Week 2 Quiz on Price Discrimination

WEEK 3

Common Pricing Metrics: Elasticities

This week we'll dive deep into the world of demand modeling. We'll start with a brief overview of regressions--what they are, why they're useful and how to calculate them using Excel. Then you'll get a chance to use regressions as you learn about three types o...

12 videos, 2 practice quizzes

Graded: Week 3 Quiz on Price Elasticities

WEEK 4

Channel and Direct-to-Consumer Pricing

Welcome to our final week together in this course! We'll finish by discussing key concepts related to channel pricing--or pricing through the supply chain. You'll learn about double-marginalization, time value of money, and customer lifetime value (CLV)--not o...

16 videos, 1 reading, 2 practice quizzes

Graded: Retail Relay Case Quiz

Graded: Week 4 Quiz on Channel and Direct-to-Consumer Pricing

Graded: Cost-based Pricing

FAQs

How It Works

Coursework

Each course is like an interactive textbook, featuring pre-recorded videos, quizzes and projects.

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Creators

University of Virginia

The University of Virginia is distinctive among institutions of higher education. Founded by Thomas Jefferson in 1819, and located on a World Heritage site in Charlottesville, the University sustains the ideal of developing, through education, leaders who are well-prepared to help shape the future of the nation. The University is public, while nourished by the strong support of its alumni. It is also selective; the students who come here have been chosen because they show the exceptional promise Jefferson envisioned.

BCG

We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit bcg.com.

Pricing

	Audit	Purchase Course
Access to course materials	Available	Available
Access to graded materials	Not available	Available
Receive a final grade	Not available	Available
Earn a shareable Course Certificate	Not available	Available

Ratings and Reviews

Rated 4.9 out of 5 of 25 ratings

I would definitely recommend to anyone interested in pricing!

Course content was good, although it was simple, they can be made more rigorous.

Great course and intro to pricing strategy, already excited for the coming courses in the specialization.

Great Course!!

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