Pricing Decisions: An Economic Approach

Course Description

"Pricing Decisions: An Economic Approach" is an advanced-level course offered by IIMBx that delves into the complex world of pricing strategies for products and services. This comprehensive course provides business owners and professionals with a solid economic framework to make informed and effective pricing decisions. By exploring the intricate interplay of costs, competition, and customer factors, learners will gain a deep understanding of how to set prices that align with their company's objectives and market dynamics. The course also addresses the impact of recent global events, such as COVID-19, on pricing strategies, making it highly relevant in today's ever-changing business landscape.

What You'll Learn

• Apply the 3C+O framework to evaluate pricing strategies
• Implement cost-based pricing heuristics
• Identify and account for relevant competition in pricing decisions
• Recognize the drivers of consumer value perceptions and their impact on pricing
• Understand and apply price discrimination techniques
• Analyze pricing decisions using economic principles
• Optimize pricing strategies for revenue maximization
• Apply concepts of elasticity to pricing decisions
• Understand multiproduct pricing and its economic implications
• Grasp the basics of game theory and auctions in pricing contexts

Prerequisites

• Undergraduate-level exposure to Economics
• Basic understanding of business concepts
• Familiarity with supply and demand principles
• Comfort with mathematical concepts and calculations

Course Content

• Economic foundations of pricing
• Market clearing prices and supply-demand dynamics
• Fundamentals of demand and customer perspective
• Cost-based pricing decisions and optimization
• Competition-based pricing strategies
• Company objectives and their impact on pricing
• Multiproduct pricing economics
• Price discrimination techniques
• Game theory in pricing decisions
• Auction strategies
• Impact of global events (e.g., COVID-19) on pricing

Who This Course Is For

• Business owners and entrepreneurs
• Marketing and sales professionals
• Product managers
• Financial analysts
• Economics students seeking practical applications
• MBA students and graduates
• Professionals looking to enhance their pricing strategy skills
• Anyone involved in making pricing decisions in their organization

Real-World Applications

• Develop pricing strategies for new products or services
• Optimize existing pricing models to increase profitability
• Respond effectively to market changes and competitive pressures
• Make data-driven pricing decisions based on economic principles
• Implement price discrimination strategies to maximize revenue
• Navigate pricing challenges during global events or economic shifts
• Improve company performance through strategic pricing
• Conduct market analysis to inform pricing decisions
• Participate in auctions or bidding processes with confidence
• Collaborate with cross-functional teams to align pricing with overall business objectives