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2020/2021  BA-BHAAV7026U  Pricing Management

English Title
Pricing Management

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration One Quarter
Start time of the course Autumn, First Quarter, Third Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 50
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Sof Thrane - Department of Operations Management (OM)
The course will be taught by Assistant Professor Kai Basner, PhD Fellow Wiktoria Ewa Salwa and Assistant Professor Giulio Zichella.
Main academic disciplines
  • Marketing
  • Organisational behaviour
  • Accounting
Teaching methods
  • Online teaching
Last updated on 25-09-2020

Relevant links

Learning objectives
The purpose of the course is to give students a theoretical and practical understanding of the fundamentals of pricing:
  • Knowledge of state-of-the-art pricing research.
  • Ability to apply pricing theory to real- life contexts, and to derive managerial implications from research findings.
  • Ability to critically discuss pricing from various perspectives such as managerial and behavioral economics, marketing and organisation theory.
Course prerequisites
Good understanding of English, oral and written, is an advantage. Basic knowledge of managerial economics, finance, marketing and sales is beneficial, but is not a prerequisite. Students attending this class will get an understanding of how pricing can be applied for capturing customer value and boosting firm profitability.

Please note that the elective course is reserved for HA students, who wish to write their bachelor project in this elective course.
Pricing Management:
Exam ECTS 7,5
Examination form Oral exam based on written product

In order to participate in the oral exam, the written product must be handed in before the oral exam; by the set deadline. The grade is based on an overall assessment of the written product and the individual oral performance.
Individual or group exam Individual oral exam based on written group product
Number of people in the group 2-3
Size of written product Max. 5 pages
It is possible to write the project individually without applying for exemption.
1 person max 3 pages.
Assignment type Synopsis
Written product to be submitted on specified date and time.
20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Grading scale 7-point grading scale
Examiner(s) Internal examiner and second internal examiner
Exam period Winter
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

The synopsis is intended as a first step in developing an interesting problem for the bachelor project. The synopsis should therefore prefereably be based on (parts of) the empirical material that is going to be used in the thesis.The exam will thus to some extent serve as a feedback session for the bachelor project. In case a bachelor project is not written other types of data or pure conceptual synopsis may be submitted.

The synopsis should develop a pricing problem and discuss how different theories conceptualise or analyse the problem. The exam will focus on testing the comprehension and application of the theories used, and the ability to reflect upon and compare the different theoretical/technical positions used in the synopsis. Hence, the focus of the exam will  be on subjects and theories that are discussed in the synopsis.

The exception will be situations where the synopsis is very narrow in its use of theory or where relevant theories/techniques for analysing the synopsis problem, have not been discussed. In this case, theories not discussed in the synopsis will be part of the exam. 

Course content, structure and pedagogical approach

Pricing management is one of the most powerful levers for improving firms’ profitability. Therefore, pricing is moving up the strategic agenda in many firms, which now devote considerable effort to the management of their pricing process.


Pricing management is also a complex task that involves multiple departments, comprises a variety of techniques, and diverse sets of information. This course presents relevant theories that address such complexity, and pricing techniques used in business contexts. By the end of this course, you will acquire a holistic view on pricing as a key to competitive advantage.


From a theoretical perspective, the course takes an interdisciplinary perspective. Intellectual curiosity and background diversity is a plus, as we draw on insights from marketing, organization theory, managerial and behavioral economics. Throughout the course, theories are presented and discussed critically, underlining their usability and limitations in the local and global business contexts. The course is designed so that students writing their bachelor thesis on pricing may find a suitable theoretical angle, and apply it on a business case.


From a pedagogical perspective, the course takes a practical approach to pricing challenges. In general, each session starts out with discussing a particular pricing challenge (e.g. how to gather relevant pricing information inside/outside the firm?) as well as models and techniques for solving them (e.g. conjoint analysis). Following this, the session will apply solutions in practice through class discussions, simulations, exercises, casework, and workshops. This approach allows you to acquire hands-on experience on the techniques of pricing, get an understanding of the organizational practices and processes, and give you models and theories to analyze pricing challenges. 


The course will make use of guest lectures to illustrate the practical application of the models and theories of the course. Around three guest lecturers are invited from different industries to share their experiences and explain how they apply pricing theories in practice. Last year, we had presentations on how to price environmentally sustainable products, value-driven social media influencing, and pricing consultancy.

The content of the course is organized into four main modules:


1. Introduction to Pricing  & the classic pricing paradigms

This module lays the foundation for the course in terms of the technical basis of pricing. The focus will be on introducing the concept of pricing and its importance in several disciplines (e.g. managerial economics, marketing). We will then move on to introducing the classic pricing paradigms – that is cost-based and competitor-based pricing – as they are often used in practice. Several classic pricing techniques are introduced (e.g. the construction of list prices, price waterfall, cost-plus). Finally, we will discuss classic pricing techniques’ limitations, and challenge pricing paradigms’ assumptions by introducing the topic of competitive advantage via pricing management.


2. The new pricing paradigms 1: Value-based pricing & Behavioral pricing

In this module we introduce two key elements in contemporary pricing reseearch and practice: value and behavior. First, we will discuss the importance of managing pricing based on customers’ perceived value instead of on internal costs. Second, we will discuss customers’ choice and behavior through the analysis of heuristics and biases, as these are fundamental in human decision making both in B2B and B2C. Finally, we will introduce a selection of state-of-the-art pricing techniques (.g. price sensitivity, conjoint analysis, key buying factor analysis, willingness-to-pay, dynamic pricing) and discuss their practical usefulness and limitations in capturing customers’ value.



3. The new pricing paradigms 2: Pricing implementation and control

In this module we will focus on implementation of pricing decisions (e.g. sales force management, negotiations, and incentives) and the control of pricing decisions (e.g. discount management, Key Performance Indicators (KPIs), use of pricing softwares). This module discusses organizational issues in pricing. The focus will be on coordination efforts for pricing (e.g. new product pricing, target costing) and effective communication practices.


4. Pricing Perspectives and future outlook

This module discusses the various perspectives covered in the course further explicating their basic assumptions and relevance. There will also be a session on emerging topics in pricing (e.g. pricing in startups) from a research and a practitioner perspective. 


Description of the teaching methods
The course consists of 36 lecturing hours with one lecturing hour being equal to 45 minutes. Each lecture consists of 3 lecturing hours. There are 9 lectures and 3 workshops.
The course will require active class participation in the lectures and case solving. Sessions include discussions and oral presentations of specific cases, models or articles by the students in groups. Each group will have to give one oral presentation and hand in essays for each workshop.

Each group have an opportunity to give one oral presentation that focus on a particular pricing problem that the students want to analyse in their project. The presentation is thus intended to be an option for feedback on the project. It is expected that many of the students will also write bachelor thesis in pricing. The presentation and project exam may be used to develop ideas and data that can be further elaborated upon in the bachelor thesis.
Feedback during the teaching period
The students will receive feedback on the workshop reports and presentations.

The student will receive feedback on the proposed topic for the essay / mini project.
Student workload
Class and exam preparation 179 hours
Teaching 27 hours
Expected literature

The overall course textbook:

  1. Thomas Nagle,  & George Müller: “The Strategy and Tactics of Pricing”. 6th edition, Routledge international Edition, 2018, 345 pages, 9781292023236.

All required readings as well as all slideshows from the lectures and the workshops are curriculum.

Selected articles from academic journals will be uploaded on CBS Learn in due time, i.e. one week before each lecture.

Last updated on 25-09-2020