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2023/2024  KAN-CCMVI2129U  Pricing Strategies

English Title
Pricing Strategies

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration Summer
Start time of the course Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Min. participants 30
Max. participants 60
Study board
Study Board for cand.merc. and GMA (CM)
Course coordinator
  • José Mata - Department of Strategy and Innovation (SI)
For academic questions related to the course, please contact course responsible José Mata (jm.si@cbs.dk)
Main academic disciplines
  • Marketing
  • Strategy
Teaching methods
  • Blended learning
Last updated on 22-11-2023

Relevant links
Learning objectives
At the end of the course students should be able to:
  • Calculate the range of admissible prices for products
  • Estimate price sensitivity
  • Evaluate the financial impact of changes in prices
  • Choose strategies for communicating value and prices in different environments
  • Understand the legal and ethical limitations to pricing practices
Course prerequisites
Completed Bachelor degree or equivalent
Examination
Pricing Strategies:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Max. 10 pages
Assignment type Written assignment
Release of assignment The Assignment is released in Digital Exam (DE) at exam start
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Summer
Make-up exam/re-exam
Same examination form as the ordinary exam
1st retake is a 72-hour, maximum 10-pages home assignment.
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Description of the exam procedure

Home assignment written in parallel with the course.
Course content, structure and pedagogical approach

Pricing is one of the most powerful tools that managers have available for increasing profits and the value of their firms. Pricing is a critical tool for companies to appropriate part of the value that they create through innovations. However, this potential often remains unexploited, as many managers lack a clear understanding of how to improve upon their firm's customary pricing practices.

During the course, students will learn to assess the value of products and the role that value plays in the pricing process. They will learn how to assess price sensitivity and evaluate the financial implications of price changes. They will learn how communication of value and prices can influence the perceptions and behaviors of clients and competitors. The course will conclude with a discussion on the legal and ethical limits to pricing.

Overall, the course prepares you for addressing both strategic and tactical pricing issues and for identifying changes in pricing practices that can lead to improvements in firm profits. This should be relevant for a wide number of jobs that you may hold throughout your careers, such as product and marketing manager, but also business unit manager, management consultant, and entrepreneur.
Description of the teaching methods
The course will be a blend of lectures and applications to real-world cases. Most teaching will be face-to-face, but parts of the expositional lectures may be given online.
Feedback during the teaching period
During classes, feedback is provided during case discussions, Q&A time in class, and office hours.
Student workload
Teaching 30 hours
Preparation and exam 176 hours
Further Information

3-week course that cannot be combined with other courses.

 

Preliminary assignment:  The course coordinator uploads Preliminary Assignment on Canvas at the end of May. It is expected that students participate as it will be included in the final exam, but the assignment is without independent assessment and grading.

 

 

 
Expected literature

The basic textbook for this course is: 

 

Thomas T. Nagle, Georg Müller,  The Strategy and Tactics of Pricing , 6th edition, 2018, Routledge.

 

The following articles can be used to go more in-depth over the different topics covered:

Enz, CA, Canina, L. and Lomanno, M., 2009. Competitive pricing decisions in uncertain times. Cornell Hospitality Quarterly, 50(3), pp.325-341.

Garrison, LP and Towse, A., 2017. Value-based pricing and reimbursement in personalized healthcare - introduction to the basic health economics. Journal of Personalized Medicine, 7(3), p.10.

Grewal, D., Ailawadi, KL, Gauri, D., Hall, K., Kopalle, P. and Robertson, JR, 2011. Innovations in retail pricing and promotions. Journal of Retailing ,  87 , pp.S43-S52.

Hinterhuber, A., 2004. Towards value-based pricing—An integrative framework for decision making. Industrial marketing management ,  33 (8), pp.765-778.

Homburg, C., Jensen, O. and Hahn, A., 2012. How to organize pricing? Vertical delegation and horizontal dispersion of pricing authority. Journal of Marketing, 76(5), pp.49-69.

Johansson, M., Hallberg, N., Hinterhuber, A., Zbaracki, M. and Liozu, S., 2012. Pricing strategies and pricing capabilities. Journal of Revenue and Pricing Management, 11(1), pp.4-11.

Kienzler, M., 2018. Value-based pricing and cognitive biases - An overview for business markets. Industrial Marketing Management, 68, pp.86-94.

Kucher, E. and Hilleke, K., 1993. Value pricing through conjoint measurement: A practical approach. European Management Journal ,  11 (3), pp.283-290.

Mandal, PC, 2021. Pricing and Ethical Issues for Global Markets - Strategies and Initiatives. International Journal of Business Strategy and Automation (IJBSA), 2(2), pp.1-15.

Noble, PM and Gruca, TS, 1999. Industrial pricing - Theory and managerial practice. Marketing science, 18(3), pp.435-454.

Palazon, M. and Delgado‐Ballester, E., 2009. Effectiveness of price discounts and premium promotions. Psychology & Marketing, 26(12), pp.1108-1129.

Pesendorfer, M., 2002. Retail sales - A study of pricing behavior in supermarkets. The Journal of Business, 75(1), pp.33-66.

Tan, Q. and Sousa, CM, 2011. Research on export pricing - Still moving towards maturity. Journal of International Marketing, 19(3), pp.1-35.

van der Rest, JPI, Sears, AM, Miao, L. and Wang, L., 2020. A note on the future of personalized pricing - Cause for concern. Journal of Revenue and Pricing Management, 19(2), pp.113-118.

Yelkur, R. and DaCosta, MMN, 2001. Differential pricing and segmentation on the Internet - the case of hotels. Management Decision, 39(4), pp. 252-261

 

For the purpose of in-class discussion, other readings, such as cases, press articles, and short exercises will be indicated before and during the course.
Last updated on 22-11-2023