University of Virginia

Customer Value in Pricing Strategy

This course is part of Pricing Strategy Optimization Specialization

Taught in English

Some content may not be translated

Jean Manuel Izaret
Thomas Kohler
Ronald T. Wilcox

Instructors: Jean Manuel Izaret

15,706 already enrolled

Course

Gain insight into a topic and learn the fundamentals

4.8

(358 reviews)

|

93%

Beginner level

Recommended experience

14 hours (approximately)
Flexible schedule
Learn at your own pace

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

Details to know

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Assessments

15 quizzes

Course

Gain insight into a topic and learn the fundamentals

4.8

(358 reviews)

|

93%

Beginner level

Recommended experience

14 hours (approximately)
Flexible schedule
Learn at your own pace

See how employees at top companies are mastering in-demand skills

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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 quizzes3 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 quizzes

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 quizzes

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 quizzes1 peer review

Instructors

Instructor ratings
4.8 (49 ratings)
Jean Manuel Izaret
BCG
4 Courses43,821 learners

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BCG

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