Cost and Economics in Pricing Strategy
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. Developed at the Darden School of Business at the University of Virginia, and led by top-ranked 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
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.
Syllabus
Syllabus - What you will learn from this course
Week 1
Pricing Fundamentals
Week 2
Price Discrimination
Week 3
Common Pricing Metrics: Elasticities
Week 4
Channel and Direct-to-Consumer Pricing
FAQ
When will I have access to the lectures and assignments?
Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. If you don't see the audit option:
What will I get if I subscribe to this Specialization?
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.
Is financial aid available?
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.
Reviews
Excellent course. In my view, the academic rigor of the week exercises needs to be improved even for a beginner level.
I liked the course, it was very useful though I believe some part should have been explained more. Overall, it was a very good one.
Excellent overview of economics in pricing strategy.
Great deal of practical work. Very applicable to real life scenarios.
Concepts in this course are challenging but the class is setup for students to succeed. I really enjoyed this course and would recommend it to anyone looking to learn more about pricing strategy.
