The traditional approach to pricing based on costs works to pay the bills, but it leaves revenue on the table. You can, in fact, price your products in a way that increases sales--if you know what your customers are willing to pay and can leverage psychology to create better deal and discount plans. In this course, we'll show you how to price a product based on how your customers value it and the psychology behind their purchase decisions. Developed at the Darden School of Business at the University of Virginia, and led by top-ranked Darden faculty and Boston Consulting Group global pricing experts, this course provides an in-depth understanding of value-based pricing and how to use it to capture more revenue.
Customer Value in Pricing Strategy
Customer Value in Pricing Strategy
This course is part of Pricing Strategy Optimization Specialization
Instructors: Jean Manuel Izaret
16,978 already enrolled
Gain insight into a topic and learn the fundamentals.
4.8
(363 reviews)
Beginner level
Recommended experience
Flexible schedule
Approx. 14 hours
Learn at your own pace
92%
Most learners liked this course
What you'll learn
Customer value applications in pricing products
How to leverage core value-based pricing techniques to inform pricing decisions
How to measure customer willingness to pay using models (surveys, conjoint analysis, other data)
Consumer psychology applications in setting prices beneficial to both consumers and sellers
Skills you'll gain
Details to know
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Assessments
15 assignments
Taught in English
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This course is part of the Pricing Strategy Optimization Specialization
When you enroll in this course, you'll also be enrolled in this Specialization.
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There are 4 modules in this course
Welcome to Week 1! We kick off the week with an overview of the course so that you'll know what to expect with an optional review of the specialization and three pricing lenses (watch these if you want a refresher). Then we'll dive into the content! This week, you'll learn about customer value--what it is and its relevance to pricing. You'll see how consumers make decisions--and why knowing consumers' willingness to pay is so important when setting a product's price. Next, we'll take a look at customer value in developing economies and how and why companies succeed (or not!) with value-based pricing in these markets. You'll finish the week with a solid understanding of "customer value" and how that impacts pricing strategy.
What's included
13 videos3 readings3 assignments3 discussion prompts
Now that you have an understanding of customer value, let's dive into value-based pricing in greater depth. This week, we'll show you how to price to the demand curve using three tools: the price piano, the price ladder, and incentive curves. We'll take a look at customer value drivers in a B2B context and walk through a process to price a new product. Then Ron and Thomas will show you how price elasticity plays into value-based pricing. Implementing value-based pricing requires detailed analysis. Let's get started!
What's included
11 videos4 assignments
As you learned in Week 1, understanding customer willingness to pay (WTP) is critical for effective pricing. This week, we'll show you two ways to measure willingness to pay: surveys and conjoint analysis. You'll see how one company, Adios Junk Mail, used surveys to better understand WTP. Conjoint is a terrific tool, and we'll walk you through how it's used to determine product preferences and prices. You'll finish the week with a solid understanding of how to measure customer preferences and use this information in your pricing strategy.
What's included
15 videos1 reading4 assignments
Last week you considered pricing using a rational utility model. But humans are not always rational beings--and your pricing strategy needs to consider other behavioral drivers. We'll look at the psychology behind consumer purchase decisions and the mental accounting that impacts those decisions. Next we'll consider consumer price perceptions and ways to frame prices and create better deals and discount plans that work for both the consumer and the seller. Then, we'll take a look at two real-world cases, the Portland Trailblazers and Fidelity Investments so that you can practice using tools from throughout the course in a real-world case. You'll finish the course with fresh insights into value-based pricing and its applications.
What's included
15 videos1 reading4 assignments1 peer review
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4.8
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SS
5
Reviewed on Dec 28, 2020
Excellent course. Good materials and entertaining professors.
AG
5
Reviewed on Mar 17, 2020
This is the best course by far in the specialization. A lot of new things for me to learn. Absolutely loved it.
PN
5
Reviewed on Aug 3, 2023
Great learning with practical and thought provoking assignments!
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