Course Summary
Learn how to create a pricing strategy that maximizes customer value and profitability with this course from the University of Virginia Darden School of Business in partnership with Boston Consulting Group.Key Learning Points
- Understand the key components of effective pricing strategies
- Develop a deep understanding of your customers and the value they place on your products or services
- Learn how to use data to inform pricing decisions and measure performance
Related Topics for further study
Learning Outcomes
- Develop a pricing strategy that maximizes customer value and profitability
- Understand how to use data to inform pricing decisions and measure performance
- Learn how to conduct market research to better understand customer needs and preferences
Prerequisites or good to have knowledge before taking this course
- Basic understanding of marketing concepts
- Familiarity with Excel or other data analysis tools
Course Difficulty Level
IntermediateCourse Format
- Online
- Self-paced
Similar Courses
- Business Strategy: Achieving Competitive Advantage
- Marketing Analytics
- Digital Marketing
Related Education Paths
Related Books
Description
The traditional approach to pricing based on costs works to pay the bills, but it leaves revenue on the table. You can, in fact, price your products in a way that increases sales--if you know what your customers are willing to pay and can leverage psychology to create better deal and discount plans. In this course, we'll show you how to price a product based on how your customers value it and the psychology behind their purchase decisions. 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, this course provides an in-depth understanding of value-based pricing and how to use it to capture more revenue.
Knowledge
- Customer value applications in pricing products
- How to leverage core value-based pricing techniques to inform pricing decisions
- How to measure customer willingness to pay using models (surveys, conjoint analysis, other data)
- Consumer psychology applications in setting prices beneficial to both consumers and sellers
Outline
- Understanding Customer Value
- Pricing Specialization Overview
- Three Lenses
- Week 1 & Course Introduction
- Consumer Decision Process: Involvement and Visibility
- Mapping Purchase Processes
- Customer Value and Value Drivers
- Differentiating Customer Value by Customer Segment
- Willingness to Pay and Demand Curves
- Serving Consumers in Developing Economies
- Story of Nano
- Story of Ala
- Pricing Strategies for Developing Economies
- Week 1 Takeaways
- Course Overview & Requirements
- Survey
- Using Discussion Forums to Deepen Your Learning
- Practice Quiz on Customer Value Basics
- Practice Quiz on Customer Value in Developing Economies
- Week 1 Understanding Customer Value Quiz
- Implementing Value-based Pricing
- Week 2 Introduction
- Price to Demand Curve
- Application of Price to Demand Curve: Price Piano
- Application of Price to Demand Curve: Price Ladder
- Application of Price to Demand Curve: Incentive Curves
- Customer Value Drivers in a B2B Context
- Value-based Price Setting for a New Product: Steps 1&2
- Value-based Price Setting for a New Product: Steps 3-5
- Price Elasticity: Intersection of Economics and Customer Value 1
- Price Elasticity: Intersection of Economics and Customer Value 2
- Week 2 Takeaways
- Practice Quiz on Pricing to the Demand Curve
- Practice Quiz on Pricing New Products
- Practice Quiz on Pricing Based on Economics and Customer Value
- Week 2 Implementing Value-based Pricing Quiz
- Measuring Customer Preferences
- Week 3 Introduction & Overview of Methods to Assess WTP
- Obtaining Willingness to Pay from Surveys
- Interpreting Combined Survey Data
- Case Intro: Adios Junk Mail
- Case Debrief: Adios Junk Mail
- Conjoint Analysis Applications
- Why Conjoint?
- Conjoint Analysis: Steps 1-3
- Conjoint Analysis: Step 4 and Product Preferences
- Attribute Trade-offs
- Attribute Importances
- Conjoint Analysis: Willingness to Pay
- Conjoint Analysis: Other Ways to Interpret Data
- Conjoint Analysis: Propensity Modeling
- Week 3 Takeaways
- Case: Adios Junk Mail
- Adios Junk Mail: Case Quiz
- Practice Quiz on Obtaining WTP from Surveys
- Practice Quiz on Conjoint Analysis
- Week 3 Measuring Customer Preferences Quiz
- Considering the Human Nature of Customers
- Week 4 Introduction
- Mental Accounting and Price Perceptions
- Money Is Not Money
- What We Can Learn from Ginsu Knives
- Integrating Losses
- Minimizing Losses and Give a Win with a Loss
- Considering Consumer Price Perceptions: The Framing Effect
- Gain and Loss Frames in Pricing
- The Pain of Paying
- Separate the Pain of Paying from Consumption
- Anchoring and Price Primacy
- Visual Tricks, Free as a Special Price, and Hedonic Bundling
- Price Decoy
- Applying the Customer Value Lens: Subscription Pricing
- Week 4 Takeaways & Course Wrap-up
- Case Debrief Videos
- Practice Quiz on Mental Accounting
- Practice Quiz on Consumer Price Perceptions
- Practice Quiz on Mental Shortcuts that Affect Pricing
- Week 4 Consumer Psychology Quiz
Summary of User Reviews
This course on pricing strategy and customer value from UVA Darden and BCG has received positive reviews from many users. They have praised the course for its comprehensive approach to pricing, and its focus on real-world examples and case studies. Overall, users have found the course to be engaging, informative, and well-structured.Key Aspect Users Liked About This Course
The course is praised for its comprehensive approach to pricing, which covers both theoretical concepts and practical applications.Pros from User Reviews
- Real-world examples and case studies make the course engaging and applicable to real-world business scenarios.
- The course is well-structured and easy to follow, with clear explanations of complex concepts.
- The instructors are knowledgeable and experienced, providing valuable insights and advice.
- The course offers practical tools and frameworks that can be applied to a variety of pricing challenges.
- The course is suitable for both beginners and experienced professionals.
Cons from User Reviews
- Some users have found the course to be too basic, lacking in advanced concepts.
- The course can be time-consuming, with lengthy lectures and assignments.
- The course may not be suitable for those looking for a more technical or mathematical approach to pricing.
- The course does not cover all aspects of pricing, such as dynamic pricing or pricing for services.
- Some users have found the course to be too focused on BCG's own pricing methodology.
Jean Manuel Izaret
4.8 Raiting
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