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2020/2021  MA-MMFUO1022U  Pricing Management

English Title
Pricing Management

Course information

Language English
Course ECTS 5 ECTS
Type Mandatory
Level Part Time Master
Duration One Semester
Start time of the course Spring
Timetable Course schedule will be posted at calendar.cbs.dk
Min. participants 10
Max. participants 30
Study board
Study Board for Master i forretningsudvikling
Course coordinator
  • Sof Thrane - Department of Operations Management (OM)
Main academic disciplines
  • Managerial economics
  • Marketing
Teaching methods
  • Face-to-face teaching
Last updated on 30-06-2020

Relevant links

Learning objectives
  • Identify and explain the concepts and theories of pricing
  • Apply theories and models to own organization or other chosen empirical or conceptual context
  • Reflect upon theories and models’ relevance and applicability
Pricing Management:
Exam ECTS 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 exam
Size of written product Max. 5 pages
Assignment type Synopsis
Written product to be submitted on specified date and time.
30 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 Summer
Make-up exam/re-exam Home assignment - written product
Size of written product: Max. 10 pages
Assignment type: Essay
Duration: Written product to be submitted on specified date and time.
Description of the exam procedure

The student is expected to draw on the material assigned for the course to discuss a pricing problem in their own organisation.  

Course content, structure and pedagogical approach

Pricing is a main driver of firms’ profitability and of successful business development. Pricing however in many firms has been somewhat neglected and focused on correcting historical errors and meeting short term financial goals. Such an approach does not leverage the full potential of pricing.  

This course will focus on how firms can use pricing as a strategic lever to increase a focus on value generation. In order to accomplish this, three challenges need to be handled. First, firms are challenged by the use of market, competitor, and cost information. Gauging customers’ willingness to pay is subject to high uncertainty, and fairness considerations may impact outcomes of pricing decisions. Market prices may be distorted by discounting policies, and cost information is often imprecise. Second, firms face the challenge of coordinating pricing decisions. Functions such as finance, marketing, sales, production and R&D have knowledge and decision making power in relation to pricing. Therefore, firms need to coordinate knowledge from different parts of the organization to price effectively, something which is particularly important when implementing a value driven approach. Finally the different entities affecting pricing decisions often have different interests which lead to margin leakage, excessive discounting and problems with perceived fairness of price policies. This generates a control problem.  

The analysis of these challenges and how firms may deal with them form the foundation of this course. The three problems are analyzed in an interdisciplinary problem solving approach, using market, economic, and organizational perspectives. In the course, participants will develop insight into the use of tools and models for dealing with pricing challenges and will analyze how firms may develop pricing as a strategic, valuefocused process.  

The course will be delivered in the following manner. Each session starts out with discussing a particular challenge as well as models, theories and techniques for analyzing and solving them. Following this, the session will move on to more detailed work on challenges and solutions through simulations, exercises, casework, and workshops.   

During the first day, participants are asked to present an answer to the following question: How does your firm arrive at the invoice price? The last day will provide a forum for discussing the synopsis and developing perspectives on your organization’s pricing challenges.   

Description of the teaching methods
This course will make use of short lectures, guest presentations, simulations, exercises, and workshops. The workshops will focus on discussing pricing issues in your own organization.
Feedback during the teaching period
Feedback during class will be possible.
Student workload
Preparation 132,5 hours
Teaching hours 32 hours
Exam 0,5 hours
Last updated on 30-06-2020