Pricing and Revenue Management [ELOIM426]

Learning outcomes

This course thoroughly investigates the various aspects of pricing within a business context. The focus of the course is on the strategic, technical analysis as well as the organizational aspect. In addition, a brief introduction to the statistical/mathematical software R is given.

Objectives

1 Develop the strategy of a company in terms of pricing
2 Set up pricing research using traditional marketing research tools
3 Analyse sales data to understand price sensitivity of the customers
4 Calculate optimal prices given price sensitivity and specific cost functions
5 Be proficient in R to do the calculations

Content

Pricing theory:
• Strategic pricing
• Pricing of good versus pricing of services
• Price differentiation
• Pricing within the product cycle
• Incremental costs
• Competition & pricing
• Ethics & pricing
• Psychology of pricing
 
Price analytics:
• Typed of price-response functions

• Estimating price-response functions
• Price optimization
• Price optimization with constrained supply
• Auctions
• Estimating bid-response functions
 
Computer labs using the following software:
• R