Detailed course description
In an effort to improve performance and increase profits, companies spend considerable resources on trying to increase sales volume (e.g., through advertising) or decrease costs (e.g., through process re-engineering), but very little on trying to optimize price. After all, price is the only component of the marketing mix that immediately generates revenue, while all other components represent costs. Successful pricing decisions require a thorough understanding of three key determinants: supply side factors (costs), demand side factors (customers’ willingness to pay), and the competitive environment. Many companies assign prices based on simple surcharge calculations, or rely on their intuition rather than well-founded analytics. This may result in suboptimal pricing decisions that make the company miss out on potential profit.
This course establishes a foundation for effective pricing decisions by teaching key economic, analytical, behavioral and psychological concepts. Equipped with this understanding, you will learn how to develop successful pricing strategies, choose appropriate price models and define optimal price points.
The goals of this course are:
- Familiarize with the necessary theoretical background and analytical tools required for profitable pricing decisions.
- Get an opportunity to apply these tools and concepts to solve business problems.
- Work with real data and analyze real-world managerial pricing problems.
Prof. Dr. Florian Stahl is an Assistant Professor of Marketing at the Department of Business Administration at the University of Zürich in Switzerland since 2008. His research interests are primarily in quantitative marketing and business economics. Specifically, his research addresses business related questions of the digital economy and, in particular, of online social networks. Prof. Dr. Stahl has published several journal articles including articles in Journal of Marketing and Journal of Marketing Research. Florian Stahl has extensive experience in consulting major companies in different industries. Among other, he advised companies such as Swiss Post, Ringier AG, Siemens AG and Axel Springer AG and helped them to improve their pricing.