Value-based pricing

One of the most powerful “P” in the marketing mix is pricing. There is no bigger leverage for-profit and revenue than pricing. Over the last decade, the world of pricing has been changing at a fast pace. There has been a development of new dynamic pricing strategies, an explosion of new pricing tools and tactics, and a focus on smarter buyers. The implementations of consumption-based pricing strategies that are occurring are indicative of these changes. The field of pricing is developing fast and you simply cannot keep up with everything! Focusing on “Sell value, not price” - this course concentrates on pricing strategies and tactics from both theoretical and applied contexts.

The substantial content of the course concentrates on two aspects:

- how companies attempt to capture value and profits and

- the behavioral or psychological aspects of consumer price acceptance.

The traditional economic perspective on product pricing is therefore combined with a behavioral or psychological perspective to provide a more realistic understanding of how consumers respond to a firm's pricing decisions. An additional focus will be made on pricing dynamics and the reaction by competitors at the company and product level to various pricing practices and tactics. The materials used in the course are intended to provide you with a comprehensive exposure to making managerial pricing decisions.

GEST-S 442 equips students with conceptual frameworks that help to better design and implement pricing strategies. Two main questions will be answered:

1. Does your pricing strategy provide you with a competitive advantage?
2. Is your pricing process one of your core competencies?

The course is designed to serve as a review and in-depth study of the theory and practice of strategic pricing (LO 2.1.). We will explore the theory and applications of pricing concepts through a mix of lectures, assignments, cases, simulation games, guest lectures, and a final field project.

The goal of this course is to help students develop a comprehensive understanding of how pricing strategies can be developed and executed in a dynamic and competitive global, sustainable, and digital environment. Students will be exposed to the most recent theories and methods, analytical techniques, and current best practices for developing pricing strategies (LO 2.1.).

At the end of the course, students will be able to 

• Adopt a scientific approach to data collection, research, and analysis and communicate results using clear, structured, and sophisticated arguments (LO 2.1.)
• Display critical thinking and develop autonomous learning strategies and techniques (LO 2.2.)
• Integrate sustainable development into problem analysis (LO 1.1.)
• Master and apply key economic and management concepts, frameworks, and theories in a professional context to identify a business opportunity and create a relevant innovative solution for it (LO 1.2.)

Connaissances et compétences pré-requises ou co-requises

Knowledge in Marketing Management and Strategy
Basic knowledge in Strategic Pricing

• Lectures (theory)
• Application (exercises, case studies, worksheets, etc.)
• Case Studies
• Guest speeches
• Group project (assessment)

Références, bibliographie et lectures recommandées

Required readings – articles and cases are important and part of the final assessment! For each part/module there are journal articles and/or cases to read. They will be always announced for the next session “in class” and downloadable on UV.

Suggested books:

• Nagle, Thomas T., and Georg Müller. The strategy and tactics of pricing: A guide to growing more profitably. Routledge, 2017.
• Liozu, Stephan M. and Cros, Fabien. Monetizing and Pricing Sustainability – Beyond Good Intentions: Transform your Go-to-market for Sustainable Impact. P4P Publishing, 2023.
• Zatta, Danilo. The Pricing Model Revolution: How Pricing Will Change the Way We Sell and Buy On- and Offline. Wiley, 2022.
• Caldwell, Leigh. THE PSYCHOLOGY OF PRICE: How to Use Price to Increase Demand, Profit and Customer Satisfaction. Crimson, 2012.
• Macdivitt H. and Wilkinson M. Value-Based Pricing: Drive Sales and Boost Your Bottom Line by Creating,  Communicating and Capturing Customer Value. McGraw-Hill Education, 2011.
• Hill, Peter. Pricing for Profit: How to Develop a Powerful Pricing Strategy for Your Business. Kogan Page, 2020.

Support(s) de cours

• Syllabus
• Université virtuelle

Contacts

Sandra Rothenberger, PhD.

Professor of Marketing

Université libre de Bruxelles - SBS-EM - CEB

Department of Strategy, Governance, Marketing and Innovation

Avenue F.D. Roosevelt 50

CP 114/03

1050 Brussels, Belgium

Tel. +32 2 650 48 67

sandra.rothenberger@ulb.be
www.solvay.edu/profile/sandrarothenberger

www.linkedin.com/in/dr-sandra-rothenberger

Campus

Solbosch

Méthode(s) d'évaluation

• Projet
• Présentation orale
• Travail de groupe
• Autre
• Rapport écrit

Projet

Présentation orale

Travail de groupe

Autre

Rapport écrit

Construction de la note (en ce compris, la pondération des notes partielles)

Langue(s) d'évaluation

• anglais