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2020/2021  DIP-DHDVV6006U  Pricing Management

English Title
Pricing Management

Course information

Language English
Course ECTS 5 ECTS
Type Elective
Level Graduate Diploma
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for Graduate Diploma in Business Administration (part 2)
Course coordinator
  • Sof Thrane - Department of Operations Management (OM)
Kursusadministration: hdop@cbs.dk
Main academic disciplines
  • Managerial economics
  • Marketing
  • Accounting
Teaching methods
  • Face-to-face teaching
Last updated on 19-02-2020

Relevant links

Learning objectives
At the exam students should demonstrate
  • Knowledge of the central theories and techniques of pricing
  • Ability to analyse pricing problems in own firms or cases through theories and techniques
  • Ability to critically reflect upon the relevance and use of theories and techniques
Pricing Management:
Exam ECTS 5
Examination form Oral exam
Individual or group exam Individual exam
Duration 20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Preparation time With the listed preparation time: 20 Minutes
Grading scale 7-point grading scale
Examiner(s) Internal examiner and external examiner
Exam period Winter, Ordinær eksamen i oktober. Reeksamen i november
Aids Open book: all written and electronic aids
The student is allowed to bring to the preparation room: Simple writing and drawing utensils, laptop/tablet as a reference book (NB: there are no electric outlets available), any calculator, books including translation dictionaries, compendiums, notes. PLEASE NOTE: Students are not allowed to communicate with others during the preparation time.
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

Students will draw a question which they then will spend 20 minuttes to prepare. Once the examination starts students will present their answer and examinators will pose follow-up questions. Later other topics will be covered through questions from examinator. 

Course content, structure and pedagogical approach


Pricing is a significant driver of business profitability. However, a number of factors complicates pricing management. There is considerable uncertainty about customer willingness to pay and many markets are intransparent due to discounts. Within the company, pricing decisions should be coordinated, but the various foci and incentives in sales, marketing, production and finance create conflicts in relation to pricing decisions.


The course offers a systematic approach for handling these challenges, through a value based approach to pricing. The value-based approach will be analyzed from technical, strategic and behavioral economic perspectives. The technical approach focuses on techniques for gauging customers’ willingness to pay through con joint analysis. The behavioral economics approach focuses on how firms can utilize customers (B2B and B2C) bias and heuristics in their price setting and how they can reduce risks from customers considering pricing policies to be unfair – e.g. if firms price discriminate. The strategic perspective focuses on how pricing can be embedded in firms decision-making and pricing decisions are coordinated across the multiple functions and markets involved in the pricing decision. The course will also focus on the role of cost and competitors in the pricing decision as well as how pricing policies are implemented throughout the organization through control structures.


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 will include answers to the following questions:

- What methods can be used to set prices?

- How is customer value determined via conjoint analysis?

- How can we understand customers in B2C and B2B markets that have a buying behavior that is biased and characterized by heuristics?

- How is customer, segment and channel profitability calculated?

- How are discounts monitored and how are sales and marketing aligned with pricing objectives?

Description of the teaching methods
Pedagogically the course takes a practical, hands-on approach to pricing. 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.
Feedback during the teaching period
Systematic feedback will be given on all exercises, cases and simulations used in the teaching.
Student workload
Undervisning 28 hours
Forberedelse og eksamen 109,5 hours
Further Information

Undervisningstidspunkt: Tirsdag 17.10-20.40 i uge 35-41

Expected literature
  • Thomas Nagle, & George Müller: “The Strategy and Tactics of Pricing”. 6th edition. Taylor Francis Ltd, 2018,
  • Thaler, R. H. (2015) Misbehaving: the making of behavioral economics. New York, W.W Norton and Company Inc
  • Hinterhuber, A. (2016). The six pricing myths that kill profits. Business Horizons, 59(1), 71-83
  • Lancioni, R. (2005). Pricing issues in industrial marketing. Industrial Marketing Management, 34, 111-114
  • McManus, L (2007) The Construction of a Segmental Customer Profitability Analysis. Journal of applied management accounting research.
  • Frenzen, H., Hansen, A., Krafft., M., Mantrala, M.K., & S. Schmidt (2010) Delegation of pricing authority to the sales force: An agency-theoretic perspective of its determinants and impact on performance, Intern. J. of Research in Marketing 27 58–68


Last updated on 19-02-2020