Go to Course: https://www.coursera.org/learn/uva-darden-bcg-pricing-strategy-cost-economics
### Course Review: Cost and Economics in Pricing Strategy Are you struggling with the fundamental question of how much to charge for your products and services? If so, Coursera's "Cost and Economics in Pricing Strategy," developed at the Darden School of Business at the University of Virginia, is a course you should definitely consider. #### Overview The core of any successful business lies in its pricing strategy. This course helps you delve into the economic factors that affect pricing decisions, highlighting both the pros and cons of the traditional cost-based pricing approach. With a curriculum designed by top-ranked Darden faculty and Boston Consulting Group's global pricing experts, this course combines theoretical knowledge with practical applications, making it an invaluable resource for entrepreneurs, business owners, and marketing professionals alike. #### Course Syllabus **Week 1: Pricing Fundamentals** The course kicks off by examining basic economic principles related to pricing, such as costs and their variations. You will gain insights into the supply curve's dynamics and explore auction pricing mechanisms—this week will make you see marketplaces like eBay in a new light! **Week 2: Price Discrimination** This week focuses on price discrimination strategies, teaching you how to segment your customer base effectively to maximize profits. You’ll learn about the price and margin waterfall and discover how to spot “leaks” in your pricing strategy. A fun case study involving Heinz Ketchup illustrates the importance of understanding package sizes and volume-based pricing. **Week 3: Common Pricing Metrics: Elasticities** Diving into demand modeling, this week introduces you to regression analysis and elasticity calculations. By the end, you’ll be adept in using mathematical models to inform your pricing strategy—skills that will undoubtedly impress your colleagues. **Week 4: Channel and Direct-to-Consumer Pricing** Lastly, the course concludes with an exploration of pricing through supply chains. You’ll learn about vital concepts like double-marginalization and customer lifetime value (CLV). Real-world applications are emphasized through a case analysis of Retail Relay, allowing you to propose thoughtful solutions grounded in the course material. #### Course Strengths This course stands out for several reasons: 1. **Expert Instruction**: Learning from faculty at the highly regarded Darden School and Boston Consulting Group lends immense credibility to the content. 2. **Practical Applications**: With case studies and real-world scenarios, you won't just learn concepts in theory; you'll understand how to apply them effectively. 3. **Comprehensive Teaching**: The syllabus covers a broad range of pricing strategies and economic principles, making it suitable for beginners and those looking to refine their existing knowledge. 4. **Interactive Tools**: Use of Excel for regression analysis and demand modeling makes the course hands-on and practical, enhancing your learning experience. #### Recommendation I highly recommend the "Cost and Economics in Pricing Strategy" course to anyone interested in mastering pricing strategies. Whether you're a budding entrepreneur, an established business owner, or a marketing professional, the insights you acquire here will equip you with the tools you need to make informed pricing decisions. The course balances theoretical concepts with real-world applications, and the expertise offered by Darden faculty ensures you're learning from the best. Pricing is not just about numbers; it's about understanding consumer behavior, market dynamics, and economic principles. This course does an exceptional job of knitting these elements together, making it a vital addition to your professional development journey. Enrolling in this course could be transformative for your business strategy and operational success—don't miss out!
Pricing Fundamentals
Welcome to the first week of Cost and Economics in Pricing Strategy course! We'll begin our study of pricing by looking at some basic economic principles relevant to pricing, such as cost and cost variations and what that implies about the supply curve. Then we'll take a closer look at one pricing mechanism: auctions. You will never look at eBay the same!
Price DiscriminationThis week we'll tackle three areas that will help you improve the effectiveness of your pricing strategy. First, we'll take a look at price discrimination and how to set prices for different customer segments to maximize profits. You'll learn about the price and margin waterfall and how creating one for your business can help identify "leaks" that you can prevent. Then we'll examine volume-based pricing, or pricing differently for different volumes to encourage consumption, of a consumer product: Heinz Ketchup. When we're done, you'll be very aware of the impact package size has on your own consumption--and how to use this knowledge to price products.
Common Pricing Metrics: ElasticitiesThis week we'll dive deep into the world of demand modeling. We'll start with a brief overview of regressions--what they are, why they're useful and how to calculate them using Excel. Then you'll get a chance to use regressions as you learn about three types of elasticities--relationships between demand and price or other factors--and the drivers of these elasticities. We'll finish with a price optimization based on demand models--a truly useful method for pricing based on economic factors. By the end of this week, you'll be able to impress your colleagues and friends with your knowledge of mathematical models and how to use them to inform your pricing strategy!
Channel and Direct-to-Consumer PricingWelcome to our final week together in this course! We'll finish by discussing key concepts related to channel pricing--or pricing through the supply chain. You'll learn about double-marginalization, time value of money, and customer lifetime value (CLV)--not only what they are, but how to use them to improve pricing decisions. Then we'll show you three different pricing techniques that you can use to improve direct-to-consumer pricing. You'll finish with a real-world case analysis of Retail Relay, an online grocery ordering and delivery service. You'll be able to recommend a viable approach to their pricing dilemma based on knowledge from this course. Enjoy!
How much should you charge for your products and services? Traditionally, businesses have answered this question based on the cost to produce or provide their goods and services. This course shows you the economic factors behind pricing based on cost and the pros and cons of a cost-based pricing approach. 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, the course provides the practi
Professors explains every topic in a very clear and practical way. For a non-economics person like me, the course has a lot of value and encourages me to research more.
Interesting module considering this is my first time trying to understand pricing and how to set pricing. Learnt a lot, thanks.
A good course but there were places where I felt things weren't clearly explained. Also, the quiz questions were sometimes somewhat ambiguous.
Amazing! price has been most of the time an uncertainty . This course gives you the learning you need for allocating pricing strategies to the right business scenario
Cost and Economic in Pricing Strategy is a discourse I was glad and privy to have taken and it has helped widen my scope of knowledge especially in determining the prices of a new product.