Pricing Strategies
Study Board for Continuing and Higher Education in Health & Social Sciences
Teaching language: English
EKA: B830809102
Censorship: Second examiner: None
Grading: 7-point grading scale
Offered in: Odense
Offered in: Autumn
Level: Professional Master
Course ID: B830809101
ECTS value: 5
Date of Approval: 04-04-2019
Duration: 1 semester
Course ID
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Mandatory prerequisites
Recommended prerequisites
Aim and purpose
This course prepares students to address strategic and tactical pricing issues and to identify profit-boosting changes in pricing practices across a range of professional contexts – as management consultants, product managers, entrepreneurs, business unit managers, and M&A advisors.
Pricing offers managers one of their most powerful levers for maximizing profits and shareholder value. However, this value often lies untapped within many organizations. Managers often lack a clear understanding of how to improve on historical pricing practices within their companies and industries and how to apply such knowledge to new product settings. Some examples of questions we will address in the course: How does a firm determine the price for a new product? How does a firm assess whether the current price is appropriate? What is value pricing? Which price segmentation strategy is optimal? How can a firm avoid a price war?
This course will draw on a mixture of analytical approaches to business strategy grounded on basic microeconomic principles, and economic theory to describe approaches that are useful for optimal pricing decisions. The purpose of the course is to enable students to apply microeconomic insights to identify optimal business strategies for firms. The course develops the technical skills required to compute these strategies, by availing of a mix of lectures, exercise classes, case discussions, and in-class demonstrations based on real-world examples.
Content
- Solutions to profit maximization problems.
- Optimal pricing mechanisms under different information structures.
- Optimal strategies for a firm: Nash equilibrium in market competitive scenarios.
- Incentives: Selling Strategies, Agency, and Auction Design.
Learning goals
To fulfill the purposes of the course the student must be able to, for a specific problem, concerning the content key areas, be able to:
- Identify the relevant theoretical models to decision-makers or firm managers.
- Compare and contrast these models and their relevance and applicability.
- Predict a need for further development of these models and theories.
- Construct simple theoretical models tailored to specific market circumstances or products.
- Evaluate the underlying assumptions regarding the theoretical models and their relevance in a market.
- Justify the managerial implications of specific strategies for a firm.
- Identify opportunities to enhance profits in a firm by applying theoretical insights gathered.
Description of outcome - Knowledge
Demonstrate knowledge on the course themes and problem in such a way that they are able to discuss, criticize and evaluate:
- Relevant theoretical models to decision-makers or firm managers
- Underlying assumptions of the theoretical models and their relevance in a market
- Managerial implications of specific strategies for a firm
Description of outcome - Skills
Demonstrate competences and skills in such a way that they are able to:
- Compare and contrast the theoretical models and their relevance and applicability
- Predict a need for further development of these models and theories
- Construct simple theoretical models tailored to specific market circumstances or products
- Identify opportunities to enhance profits in a firm by applying theoretical insights gathered
Description of outcome - Competences
Literature
Textbook: Vohra, Rakesh V. and Lakshman Krishnamurthi (2012). Principles of Pricing: An Analytical Approach, Cambridge University Press.
Additional reading: see blackboard.
Case studies.
Teaching Method
Individual studies as preparation for the lectures in the classes and a total of 30 hours in class (including practical exercises). Project work in groups. The readings for the course will be outlined on blackboard so that the students can commence the preparation well in advance of each teaching day.
Workload
The workload of the course is, on average, distributed as follows:
Class teaching: 30 hours
Group and individual work beyond classes: 40 hours.
Preparation for teaching: app. 50 hours.
Preparation for exam: app. 11 hours.
Exam: 4
Total: 135 hours.
Examination regulations
Exam
Name
Exam
Timing
Exam: December or January
Reexam: February
Tests
Exam
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Exam
Form of examination
Take-home assignment
Censorship
Second examiner: None
Grading
7-point grading scale
Identification
Student Identification Card - Exam number
Language
Danish, English
Duration
4 hours written take-home
Examination aids
All exam aids are allowed. However, it is not allowed to communicate with anybody
Assignment handover
Via Blackboard
Assignment handin
Via SDUassignment in the course page in Blackboard
ECTS value
5
Additional information
-
EKA
B830809102
External comment
Courses offered
Offer period | Offer type | Profile | Education | Semester |
---|---|---|---|---|
Fall 2019 | Optional | MBA | Master of Business Administration - 2022 | | Odense |