Course Summary
Learn how to develop a pricing strategy and cost economics that will help your business succeed with this course from the University of Virginia, Darden School of Business and Boston Consulting Group.Key Learning Points
- Discover how to analyze and understand cost structures in order to make informed pricing decisions.
- Learn how to develop a pricing strategy that takes into account both the customer's willingness to pay and the company's cost structure.
- Understand how to use data and analytics to optimize pricing and improve profitability.
Job Positions & Salaries of people who have taken this course might have
- USA: $67,000
- India: ₹4,91,000
- Spain: €29,000
- USA: $67,000
- India: ₹4,91,000
- Spain: €29,000
- USA: $100,000
- India: ₹11,00,000
- Spain: €60,000
- USA: $67,000
- India: ₹4,91,000
- Spain: €29,000
- USA: $100,000
- India: ₹11,00,000
- Spain: €60,000
- USA: $200,000
- India: ₹25,00,000
- Spain: €120,000
Related Topics for further study
Learning Outcomes
- Develop a pricing strategy that takes into account both the customer's willingness to pay and the company's cost structure.
- Understand how to analyze and understand cost structures in order to make informed pricing decisions.
- Learn how to use data and analytics to optimize pricing and improve profitability.
Prerequisites or good to have knowledge before taking this course
- Basic understanding of business concepts
- Familiarity with Excel or similar spreadsheet software
Course Difficulty Level
IntermediateCourse Format
- Online
- Self-paced
Similar Courses
- Business Metrics for Data-Driven Companies
- Strategy and Sustainability
- Marketing Analytics
Related Education Paths
- Master of Business Administration (MBA)
- Master of Science in Business Analytics (MSBA)
- Executive Education Programs
Notable People in This Field
- Professor, Harvard Business School
- Professor, Harvard Business School
- Professors, INSEAD
Related Books
Description
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.
Knowledge
- 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.
Outline
- Pricing Fundamentals
- Introduction to the Specialization
- Three Pricing Lenses
- What to Expect This Week
- Basic Metrics of Pricing: Margins and Markups
- The Relationship Between Price and Quantity: Demand Schedules
- The Relationship between Price and Quantity: Functional Form
- Cost, Cost Variations and Supply Curves
- Auctions as a Pricing Mechanism
- English Auctions
- Dutch Auctions
- Sealed Bid Auctions
- B2B Auctions
- Module 1 Takeaways
- Course Overview & Requirements
- Survey
- Using Discussion Forums to Deepen Your Learning
- Top Ten Learner Tips
- Practice Quiz on Basic Economics
- Practice Quiz on Auctions
- Week 1 Pricing Fundamentals Quiz
- Price Discrimination
- Intro to Price Discrimination
- Cost-plus Pricing
- Price Discrimination Based on Cost Variation
- Price and Margin Waterfall
- Product Line Pricing Principles
- Product Line Pricing: Paper Towels
- Product Line Pricing: Ketchup
- Product Line Pricing: Principle 3
- Other Incentives That Lower Costs
- Field Trip to Kroger's Ketchup Aisle: The Heinz Case
- Heinz Case Debrief
- Module 2 Takeaways
- Case Study: Heinz Ketchup: Pricing the Product Line
- Practice Quiz on Cost-plus Pricing
- Quiz on the Heinz Case
- Practice Quiz on Product Line Pricing
- Week 2 Quiz on Price Discrimination
- Common Pricing Metrics: Elasticities
- Intro to Common Pricing Metrics/Elasticities
- Calculating Regressions
- Interpreting Regression Outputs
- Price Elasticities
- Cross-Price Elasticity
- Income Elasticity
- Drivers of Price Elasticity
- Drivers of Price Elasticity: Market Share
- Drivers of Price Elasticity: Competitors' Prices
- Calculus: Taking a Derivative
- Price Optimization Considering Demand
- Price Optimization Example
- Module 3 Takeaways
- Practice Quiz: Regressions
- Practice Quiz on Price Elasticities
- Week 3 Quiz on Price Elasticities
- Channel and Direct-to-Consumer Pricing
- Intro to Channel and Direct to Consumer Pricing
- Double Marginalization
- Channel Pricing
- Using Time Value of Money to Evaluate a Project
- Using Time Value of Money to Compare Different Projects
- Customer Lifetime Value (CLV)
- Measuring CLV
- Measuring CLV Examples
- Purchase Occasion Probabilities
- Case Application: Retail Relay Intro
- Case Application: Retail Relay Debrief
- Marginal Cost Pricing Defined
- Marginal Cost Pricing Airline Industry Example
- Peak Load Pricing
- Index-Based Pricing
- Module 4 Takeaways
- Case Study: Retail Relay
- Retail Relay Case Quiz
- Practice Quiz on Double Marginalization, Time Value of Money, and CLV
- Practice Quiz on Pricing Methods
- Week 4 Quiz on Channel and Direct-to-Consumer Pricing
Summary of User Reviews
This course on pricing strategy and cost economics by UVA Darden and BCG has received positive reviews from many users. They have highlighted the course's comprehensive coverage of pricing strategies and cost analysis, making it an excellent resource for anyone looking to improve their understanding of these topics.Key Aspect Users Liked About This Course
Comprehensive coverage of pricing strategies and cost analysisPros from User Reviews
- Great course for anyone looking to improve their pricing strategy skills
- In-depth explanations of various pricing models
- Real-world case studies help to illustrate key concepts
- Engaging and knowledgeable instructors
- Course content is relevant and up-to-date
Cons from User Reviews
- Some users found the course to be too basic and lacked advanced content
- Course materials can be dry and difficult to follow at times
- Lengthy video lectures may not be suitable for all learning styles
- Some users found the course to be too focused on the consulting industry
- Limited opportunities for interaction with instructors and other learners
Jean Manuel Izaret
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