This book provides a broad introduction to the field of pricing as a tactical function in the daily operations of the firm and a toolbox for implementing and solving a wide range of pricing problems.
Beyond the theoretical perspectives offered by most textbooks in the field, Essentials of Pricing Analytics supplements the concepts and models covered by demonstrating practical implementations using the highly accessible Excel software, analytical tools, real-life examples and global case studies. The book covers topics on fundamental pricing theory, break-even analysis, price sensitivity, empirical estimations of price–response functions, price optimisation, markdown optimisation, hedonic pricing, revenue management, the use of big data, simulation, and conjoint analysis in pricing decisions, and ethical and legal considerations.
This is a uniquely accessible and practical text for advanced undergraduate, MBA and postgraduate students of pricing strategy, entrepreneurship and small business management, marketing strategy, sales and operations. It is also important reading for practitioners looking for accessible methods to implement pricing strategy and maximise profits.
Online resources for instructors include Excel templates and PowerPoint slides for each chapter.
Table of Contents
2. Fundamentals of price theory
3. Segmentation and price differentiation
4. Break-even analysis
5. Price sensitivity and willingness-to-pay
6. Empirical estimations of price-response functions
7. Price optimization
8. Case study: Optimal prices of movie theatre tickets
9. Markdown optimization
10. The hedonic pricing model
11. Revenue Management
12. Big Data and pricing analytics
13. Monte Carlo simulation for pricing decisions
14. Conjoint analysis for pricing decisions
15. Acceptance, ethics and the law
Erik Haugom is Professor in Business Administration at Inland Norway University of Applied Sciences, Norway.
“A refreshingly new approach to the teaching of pricing from a very practical point of view.”
Nicholas Perdikis, Professor of International business, Aberystwyth Business School, Aberystwyth University, Wales, UK
“This book explains the impact of pricing on companies’ profit in a highly accessible way. Excel examples help readers to further deepen their understanding of these topics. I highly recommend this book to anybody who wants to learn the basics of pricing analytics in a very short time.”
Peter Molnar, Associate Professor at University of Stavanger, Norway
“More and more businesses are embracing analytics. But not everyone can afford a price analytics software. This book is a good way to get started, learn, and practice the pricing fundamentals. The ‘cookbook’ approach breaks down the barriers to getting started. Now every business professional can start answering real pricing questions by using a tool they are familiar with.”
Stephan M. Liozu, Chief Value Officer of Thales Group
“Essentials of Pricing Analytics is a valuable and original contribution to the pricing literature. Managers and academics will appreciate up-to-date tools that enable them to estimate demand curves, optimize prices and increase profits. Highly recommended.”
Andreas Hinterhuber, Associate Professor of Marketing, Ca’ Foscari University of Venice, Italy