University of Virginia
Cost and Economics in Pricing Strategy
University of Virginia

Cost and Economics in Pricing Strategy

This course is part of Pricing Strategy Optimization Specialization

Taught in English

Some content may not be translated

Jean Manuel Izaret
Thomas Kohler
Ronald T. Wilcox

Instructors: Jean Manuel Izaret

31,669 already enrolled

Course

Gain insight into a topic and learn the fundamentals

4.8

(653 reviews)

|

93%

Beginner level

Recommended experience

12 hours (approximately)
Flexible schedule
Learn at your own pace

What you'll learn

  • How to apply knowledge of basic economics to make better pricing decisions

  • How to recognize opportunities for price discrimination and recommend strategies to maximize sales and profits

  • How to calculate three types of price elasticities to determine the impact of price on demand

  • How to analyze and apply different pricing models, including: cost-plus pricing, marginal cost-plus pricing, peak-load pricing, index-based pricing.

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Assessments

14 quizzes

Course

Gain insight into a topic and learn the fundamentals

4.8

(653 reviews)

|

93%

Beginner level

Recommended experience

12 hours (approximately)
Flexible schedule
Learn at your own pace

See how employees at top companies are mastering in-demand skills

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This course is part of the Pricing Strategy Optimization Specialization
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There are 4 modules in this course

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!

What's included

13 videos4 readings3 quizzes1 discussion prompt

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 and margin waterfall and how creating one for your business can help identify "leaks" that you can prevent. Then we'll examine volume-based pricing, or pricing differently for different volumes to encourage consumption, of a consumer product: Heinz Ketchup. When we're done, you'll be very aware of the impact package size has on your own consumption--and how to use this knowledge to price products.

What's included

12 videos1 reading4 quizzes

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 of elasticities--relationships between demand and price or other factors--and the drivers of these elasticities. We'll finish with a price optimization based on demand models--a truly useful method for pricing based on economic factors. By the end of this week, you'll be able to impress your colleagues and friends with your knowledge of mathematical models and how to use them to inform your pricing strategy!

What's included

13 videos3 quizzes

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 only what they are, but how to use them to improve pricing decisions. Then we'll show you three different pricing techniques that you can use to improve direct-to-consumer pricing. You'll finish with a real-world case analysis of Retail Relay, an online grocery ordering and delivery service. You'll be able to recommend a viable approach to their pricing dilemma based on knowledge from this course. Enjoy!

What's included

16 videos1 reading4 quizzes1 peer review1 discussion prompt

Instructors

Instructor ratings
4.8 (106 ratings)
Jean Manuel Izaret
BCG
4 Courses44,169 learners

Offered by

BCG

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