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Cost and Economics in Pricing Strategy
  • Level Foundation
  • Duration 12 hours
  • Course by University of Virginia
  • Offered by

About

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. By the end of this course, you'll be able to: --Apply knowledge of basic economics to make better pricing decisions --Recognize opportunities for price discrimination"selling the same product at different prices to different buyers"and recommend strategies to maximize sales and profits --Calculate three types of price elasticities to determine the impact of price on demand --Analyze and apply different pricing models -Cost-plus pricing -Marginal cost-plus pricing -Peak-load pricing -Index-based pricing --Evaluate the impact of channel intermediaries and customer lifetime value on pricing

Modules

Welcome to the Course!

    • 2 Videos
    • 4 Readings
    • 1 Discussion
Show info about module content

1 Discussions

  • Meet and Greet

2 Videos

  • Introduction to the Specialization
  • Three Pricing Lenses

4 Readings

  • Course Overview & Requirements
  • Survey
  • Using Discussion Forums to Deepen Your Learning
  • Top Ten Learner Tips

Basic Economic Concepts

    • 5 Videos
    • 1 Assignment
Show info about module content

1 Assignment

  • Practice Quiz on Basic Economics

5 Videos

  • 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

Basic Pricing Mechanisms: Auctions

    • 5 Videos
    • 1 Assignment
Show info about module content

1 Assignment

  • Practice Quiz on Auctions

5 Videos

  • Auctions as a Pricing Mechanism
  • English Auctions
  • Dutch Auctions
  • Sealed Bid Auctions
  • B2B Auctions

Pricing Fundamentals Takeaways

    • 1 Videos
    • 1 Assignment
Show info about module content

1 Assignment

  • Week 1 Pricing Fundamentals Quiz

1 Videos

  • Module 1 Takeaways

Cost-plus Pricing

    • 4 Videos
    • 1 Assignment
Show info about module content

1 Assignment

  • Practice Quiz on Cost-plus Pricing

4 Videos

  • Intro to Price Discrimination
  • Cost-plus Pricing
  • Price Discrimination Based on Cost Variation
  • Price and Margin Waterfall

Product Line Pricing

    • 7 Videos
    • 1 Readings
    • 2 Assignment
Show info about module content

2 Assignment

  • Quiz on the Heinz Case
  • Practice Quiz on Product Line Pricing

7 Videos

  • 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

1 Readings

  • Case Study: Heinz Ketchup: Pricing the Product Line

Price Discrimination Takeaways

    • 1 Videos
    • 1 Assignment
Show info about module content

1 Assignment

  • Week 2 Quiz on Price Discrimination

1 Videos

  • Module 2 Takeaways

Regressions

    • 3 Videos
    • 1 Assignment
Show info about module content

1 Assignment

  • Practice Quiz: Regressions

3 Videos

  • Intro to Common Pricing Metrics/Elasticities
  • Calculating Regressions
  • Interpreting Regression Outputs

Price Elasticities

    • 9 Videos
    • 1 Assignment
Show info about module content

1 Assignment

  • Practice Quiz on Price Elasticities

9 Videos

  • 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

Pricing Elasticities Takeaways

    • 1 Videos
    • 1 Assignment
Show info about module content

1 Assignment

  • Week 3 Quiz on Price Elasticities

1 Videos

  • Module 3 Takeaways

Double Marginalization, Time Value of Money, and CLV

    • 11 Videos
    • 1 Readings
    • 1 Discussion
    • 2 Assignment
Show info about module content

2 Assignment

  • Retail Relay Case Quiz
  • Practice Quiz on Double Marginalization, Time Value of Money, and CLV

1 Discussions

  • CLV for New Retail Relay Customer?

11 Videos

  • 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

1 Readings

  • Case Study: Retail Relay

Pricing Methods

    • 4 Videos
    • 1 Assignment
Show info about module content

1 Assignment

  • Practice Quiz on Pricing Methods

4 Videos

  • Marginal Cost Pricing Defined
  • Marginal Cost Pricing Airline Industry Example
  • Peak Load Pricing
  • Index-Based Pricing

Channel and Direct-to-Consumer Pricing Takeaways

    • 1 Videos
    • 1 Assignment
Show info about module content

1 Assignment

  • Week 4 Quiz on Channel and Direct-to-Consumer Pricing

1 Videos

  • Module 4 Takeaways

Cost-based Pricing Assignment

    • 1 PeerReview
Show info about module content

1 Peer Review

  • Cost-based Pricing

Auto Summary

Discover the art of pricing with "Cost and Economics in Pricing Strategy," a foundational course from Coursera. Developed by the Darden School of Business and taught by top-tier faculty and BCG experts, this course delves into economic factors influencing cost-based pricing. Over 720 minutes, you'll master pricing models, price discrimination, and elasticity calculations to optimize profits. Available through Starter, Professional, and Paid subscriptions, this course is ideal for sales and marketing professionals aiming to sharpen their pricing strategies.

Jean Manuel Izaret
Instructors

Jean Manuel Izaret

Thomas Kohler
Instructors

Thomas Kohler

Ronald T. Wilcox
Instructors

Ronald T. Wilcox