An Overview of Pricing Analysis

(Other Class Offerings)

This one or two day course is designed to provide an overview of the analysis that should be done to formulate an effective pricing policy. This course is designed for product managers and those who need to make pricing decisions but lack extensive formal pricing training or analytical experience. A summary of basic techniques to analyze these factors is presented along with applications to case examples. When possible these cases will be drawn from examples of pricing issues facing the client company. Specific topics covered and depth of coverage will be determined by class needs and objectives.

Outline

Overview of pricing

The traditional economics-based approach to pricing

Understanding costs

Assessing which costs are relevant to the pricing decisions
Developing cost functions: determining how costs vary with the level of activity
Breakeven analysis and cost driven pricing
Iso-profit analysis

Segmenting the market

Approaches to estimating the willingness to pay of an individual or market segment

Monetary value approaches
Trade-off (conjoint analysis) approaches
Statistical estimation based on purchase history

Psychological factors influencing demand

The role of reference prices in the customer's evaluation of price
Perceived relationships between price and quality
Heuristics and biases

An overview of modeling choice and demand

Discrete choice models and their limitations
Forecasting market demand

Pricing in a competitive environment

How game theory can be applied to competitive markets
Predicting competitive actions and reactions
When to be an price leader, when to follow, and how to be effective in the role chosen
Price wars: when to avoid them and how to win them (or minimize the damage from them)

Pricing tactics (Topics covered depend on class needs and objectives)

Effectively charging different prices to different customers
Pricing according to time of use (peak load pricing)
Temporary price reductions
Quantity discounts
Bundling

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	Home About�SMD Services Resources Contact�Us Discuss An Overview of Pricing Analysis (Other Class Offerings) This one or two day course is designed to provide an overview of the analysis that should be done to formulate an effective pricing policy. This course is designed for product managers and those who need to make pricing decisions but lack extensive formal pricing training or analytical experience. A summary of basic techniques to analyze these factors is presented along with applications to case examples. When possible these cases will be drawn from examples of pricing issues facing the client company. Specific topics covered and depth of coverage will be determined by class needs and objectives. Outline Overview of pricing The traditional economics-based approach to pricing Understanding costs Assessing which costs are relevant to the pricing decisions Developing cost functions: determining how costs vary with the level of activity Breakeven analysis and cost driven pricing Iso-profit analysis Segmenting the market Approaches to estimating the willingness to pay of an individual or market segment Monetary value approaches Trade-off (conjoint analysis) approaches Statistical estimation based on purchase history Psychological factors influencing demand The role of reference prices in the customer's evaluation of price Perceived relationships between price and quality Heuristics and biases An overview of modeling choice and demand Discrete choice models and their limitations Forecasting market demand Pricing in a competitive environment How game theory can be applied to competitive markets Predicting competitive actions and reactions When to be an price leader, when to follow, and how to be effective in the role chosen Price wars: when to avoid them and how to win them (or minimize the damage from them) Pricing tactics (Topics covered depend on class needs and objectives) Effectively charging different prices to different customers Pricing according to time of use (peak load pricing) Temporary price reductions Quantity discounts Bundling (Learn More) (Go to Top)
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