About this Course
4.8
105 ratings
15 reviews
Specialization
100% online

100% online

Start instantly and learn at your own schedule.
Flexible deadlines

Flexible deadlines

Reset deadlines in accordance to your schedule.
Beginner Level

Beginner Level

Some familiarity with business is helpful, but not required.

Hours to complete

Approx. 19 hours to complete

Suggested: 4 week so study, 2-4 hours/week...
Available languages

English

Subtitles: English...

What you will learn

  • Check

    Customer value applications in pricing products

  • Check

    How to leverage core value-based pricing techniques to inform pricing decisions

  • Check

    How to measure customer willingness to pay using models (surveys, conjoint analysis, other data)

  • Check

    Consumer psychology applications in setting prices beneficial to both consumers and sellers

Skills you will gain

Customer Willingness to PayPricing StrategiesCustomer Value-based PricingMeasuring Customer PreferencesCustomer Psychology
Specialization
100% online

100% online

Start instantly and learn at your own schedule.
Flexible deadlines

Flexible deadlines

Reset deadlines in accordance to your schedule.
Beginner Level

Beginner Level

Some familiarity with business is helpful, but not required.

Hours to complete

Approx. 19 hours to complete

Suggested: 4 week so study, 2-4 hours/week...
Available languages

English

Subtitles: English...

Syllabus - What you will learn from this course

Week
1
Hours to complete
3 hours to complete

Understanding Customer Value

Welcome to Week 1! We kick off the week with an overview of the course so that you'll know what to expect with an optional review of the specialization and three pricing lenses (watch these if you want a refresher). Then we'll dive into the content! This week, you'll learn about customer value--what it is and its relevance to pricing. You'll see how consumers make decisions--and why knowing consumers' willingness to pay is so important when setting a product's price. Next, we'll take a look at customer value in developing economies and how and why companies succeed (or not!) with value-based pricing in these markets. You'll finish the week with a solid understanding of "customer value" and how that impacts pricing strategy....
Reading
13 videos (Total 71 min), 3 readings, 3 quizzes
Video13 videos
Three Lenses4m
Week 1 & Course Introduction2m
Consumer Decision Process: Involvement and Visibility3m
Mapping Purchase Processes10m
Customer Value and Value Drivers5m
Differentiating Customer Value by Customer Segment4m
Willingness to Pay and Demand Curves8m
Serving Consumers in Developing Economies8m
Story of Nano8m
Story of Ala9m
Pricing Strategies for Developing Economies1m
Week 1 Takeawaysm
Reading3 readings
Course Overview & Requirements10m
Survey10m
Using Discussion Forums to Deepen Your Learning10m
Quiz3 practice exercises
Practice Quiz on Customer Value Basics21m
Practice Quiz on Customer Value in Developing Economies12m
Week 1 Understanding Customer Value Quiz30m
Week
2
Hours to complete
2 hours to complete

Implementing Value-based Pricing

Now that you have an understanding of customer value, let's dive into value-based pricing in greater depth. This week, we'll show you how to price to the demand curve using three tools: the price piano, the price ladder, and incentive curves. We'll take a look at customer value drivers in a B2B context and walk through a process to price a new product. Then Ron and Thomas will show you how price elasticity plays into value-based pricing. Implementing value-based pricing requires detailed analysis. Let's get started!...
Reading
11 videos (Total 62 min), 4 quizzes
Video11 videos
Price to Demand Curve6m
Application of Price to Demand Curve: Price Piano6m
Application of Price to Demand Curve: Price Ladder6m
Application of Price to Demand Curve: Incentive Curves4m
Customer Value Drivers in a B2B Context3m
Value-based Price Setting for a New Product: Steps 1&26m
Value-based Price Setting for a New Product: Steps 3-510m
Price Elasticity: Intersection of Economics and Customer Value 17m
Price Elasticity: Intersection of Economics and Customer Value 26m
Week 2 Takeawaysm
Quiz4 practice exercises
Practice Quiz on Pricing to the Demand Curve18m
Practice Quiz on Pricing New Products9m
Practice Quiz on Pricing Based on Economics and Customer Value2m
Week 2 Implementing Value-based Pricing Quiz36m
Week
3
Hours to complete
4 hours to complete

Measuring Customer Preferences

As you learned in Week 1, understanding customer willingness to pay (WTP) is critical for effective pricing. This week, we'll show you two ways to measure willingness to pay: surveys and conjoint analysis. You'll see how one company, Adios Junk Mail, used surveys to better understand WTP. Conjoint is a terrific tool, and we'll walk you through how it's used to determine product preferences and prices. You'll finish the week with a solid understanding of how to measure customer preferences and use this information in your pricing strategy....
Reading
15 videos (Total 67 min), 1 reading, 4 quizzes
Video15 videos
Obtaining Willingness to Pay from Surveys6m
Interpreting Combined Survey Data6m
Case Intro: Adios Junk Mailm
Case Debrief: Adios Junk Mail1m
Conjoint Analysis Applications4m
Why Conjoint?4m
Conjoint Analysis: Steps 1-38m
Conjoint Analysis: Step 4 and Product Preferences7m
Attribute Trade-offs2m
Attribute Importances4m
Conjoint Analysis: Willingness to Pay5m
Conjoint Analysis: Other Ways to Interpret Data3m
Conjoint Analysis: Propensity Modeling7m
Week 3 Takeaways1m
Reading1 reading
Case: Adios Junk Mail30m
Quiz4 practice exercises
Adios Junk Mail: Case Quiz15m
Practice Quiz on Obtaining WTP from Surveys12m
Practice Quiz on Conjoint Analysis18m
Week 3 Measuring Customer Preferences Quiz36m
Week
4
Hours to complete
5 hours to complete

Considering the Human Nature of Customers

Last week you considered pricing using a rational utility model. But humans are not always rational beings--and your pricing strategy needs to consider other behavioral drivers. We'll look at the psychology behind consumer purchase decisions and the mental accounting that impacts those decisions. Next we'll consider consumer price perceptions and ways to frame prices and create better deals and discount plans that work for both the consumer and the seller. Then, we'll take a look at two real-world cases, the Portland Trailblazers and Fidelity Investments so that you can practice using tools from throughout the course in a real-world case. You'll finish the course with fresh insights into value-based pricing and its applications....
Reading
15 videos (Total 78 min), 1 reading, 5 quizzes
Video15 videos
Mental Accounting and Price Perceptions6m
Money Is Not Money4m
What We Can Learn from Ginsu Knives6m
Integrating Losses7m
Minimizing Losses and Give a Win with a Loss6m
Considering Consumer Price Perceptions: The Framing Effect4m
Gain and Loss Frames in Pricing2m
The Pain of Paying3m
Separate the Pain of Paying from Consumption6m
Anchoring and Price Primacy5m
Visual Tricks, Free as a Special Price, and Hedonic Bundling9m
Price Decoy6m
Applying the Customer Value Lens: Subscription Pricing4m
Week 4 Takeaways & Course Wrap-up1m
Reading1 reading
Case Debrief Videos10m
Quiz4 practice exercises
Practice Quiz on Mental Accounting8m
Practice Quiz on Consumer Price Perceptions9m
Practice Quiz on Mental Shortcuts that Affect Pricing10m
Week 4 Consumer Psychology Quiz30m
4.8

Top Reviews

By VYFeb 19th 2018

The instructors use the real world scenarios in the simplest possible way to be understood , and tell you the to the point concepts involved in these business scenarios

By RSJun 5th 2017

Wonderful course! If I had some idea how to price regarding economic concepts - then this course gives me completely new very practical methodologies!

Instructors

Avatar

Jean Manuel Izaret

Senior Partner and Managing Director, Leader of BCG’s Global Pricing Practice
Avatar

Thomas Kohler

Associate Director, Pricing
Marketing, Sales & Pricing Practice
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Ronald T. Wilcox

NewMarket Corporation Professor of Business Administration & Senior Associate Dean for Degree Programs
Marketing

About University of Virginia

A premier institution of higher education, The University of Virginia offers outstanding academics, world-class faculty, and an inspiring, supportive environment. Founded by Thomas Jefferson in 1819, the University is guided by his vision of discovery, innovation, and development of the full potential of students from all walks of life. Through these courses, global learners have an opportunity to study with renowned scholars and thought leaders....

About BCG

The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. 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 offices in more than 90 cities in 50 countries. For more information, please visit bcg.com....

About the Pricing Strategy Optimization Specialization

In this Specialization, we show you techniques to increase price realization and maximize profits. Learn from The Boston Consulting Group's global pricing experts and University of Virginia Darden School of Business faculty, who share the frameworks, tips and tools we use in our business and research environments. We will look at pricing through BCG's proprietary and time-tested three “lenses”—cost and economics, customer value, and competition—to build your understanding of the strategic power of pricing. You’ll leave the Specialization with a portfolio-building presentation that demonstrates your ability to price strategically....
Pricing Strategy Optimization

Frequently Asked Questions

  • Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.

  • 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. If you only want to read and view the course content, you can audit the course for free.

More questions? Visit the Learner Help Center.