Course 2017-2018 a.y.

20428 - PRICING MANAGEMENT


CLMG - M - IM - MM - AFC - CLEFIN-FINANCE - CLELI - ACME - DES-ESS - EMIT - GIO
Department of Marketing

Course taught in English


Go to class group/s: 31

CLMG (6 credits - I sem. - OP  |  SECS-P/08) - M (6 credits - I sem. - OP  |  SECS-P/08) - IM (6 credits - I sem. - OP  |  SECS-P/08) - MM (6 credits - I sem. - OP  |  SECS-P/08) - AFC (6 credits - I sem. - OP  |  SECS-P/08) - CLEFIN-FINANCE (6 credits - I sem. - OP  |  SECS-P/08) - CLELI (6 credits - I sem. - OP  |  SECS-P/08) - ACME (6 credits - I sem. - OP  |  SECS-P/08) - DES-ESS (6 credits - I sem. - OP  |  SECS-P/08) - EMIT (6 credits - I sem. - OP  |  SECS-P/08) - GIO (6 credits - I sem. - OP  |  SECS-P/08)
Course Director:
SUNGTAK HONG

Classes: 31 (I sem.)
Instructors:
Class 31: SUNGTAK HONG


Course Objectives
Pricing represents one of the most powerful levers for maximizing profits and shareholder value.
The objectives for this course are
  • To familiarize you with the concepts, theory, and latest thinking bearing on the key issues in pricing, drawn from a mixture of fields (economics, psychology and statistics etc.).
  • To provide you with an opportunity to apply theory and frameworks to the solution of pricing problems in a variety of business contexts. This involves working through an application of modelling techniques to an analysis of secondary data.
  • To provide you with a forum in which you may further develop your business communication skills and receive feedback from your peers and the instructor.

Course Content Summary
The contents of this course comprises theory (concepts and frameworks relevant to pricing) and empirical applications to real-world datasets. Topics include
  • Understanding customers and pricing using EVC (Economic Value to the Customer).
  • Price customization: pricing across segments.
  • Psychology of prices and value communication.
  • Pricing over product life cycle.
  • Competition and strategic response.
  • Measuring the price elasticity of demand via market response models.
  • Conjoint analysis for pricing decisions.
  • Channel pricing strategy evaluation (e.g., trade promotions profitability). 
During the course, there are several in-class exercise sessions in which students solve pricing problems on their laptops. These sessions are helpful for learning how to set and evaluate prices using various data. During these sessions, the students make extensive use of spreadsheet applications, such as Microsoft Excel (with the Analysis ToolPak add‐in). For this reason, to get the most out of the course, attendance is highly recommended. Also, participation to discussions in class is important and each student is expected to contribute.
     

Detailed Description of Assessment Methods
Students' performance is assessed based on the following criteria: in-class participation; individual and group exercises; and the final (written) exam. Further evaluations rules are detailed at the beginning of the course and available in the detailed Syllabus.

Textbooks
For attending students
  • All material discussed and distributed in class (slides, articles, hand-outs etc.): the material for pre-class reading is distributed in advance.
  • T. NAGLE, J. HOGAN, J. ZALE, The Strategy and Tactics of Pricing, 5th edition, corresponding chapters, see tentative weekly schedule.
For non attending students
  • T. NAGLE, J. HOGAN, J. ZALE, The Strategy and Tactics of Pricing, 5th edition.

Prerequisites
A basic understanding of microeconomics and statistics (e.g. linear ressions and t-tests) helps the students gain a more insightful understanding of the course material.
Last change 23/06/2017 10:52