Management accountants should have a key role to play in developing and executing pricing strategy and policy. However, their historical focus on costing and operations means that their potential as business partners with marketing and sales professionals is easily overlooked. This book focuses on how management accountants can help key stakeholders in the formulation and execution of pricing policy and, conversely, on showing managers responsible for pricing decisions how they could be helped by management accountants. It equips management accountants with a unique overview of pricing theory, the practical, quantitative techniques they should know and the value they can bring to the pricing function.
The book analyses segmentation, value to customer, price-value maps, segmental pricing, product differentiation and dynamic pricing, with traditional economic theory, showing how these ideas have implications for management accountants and the value that they can bring to the business. Differences in customer value have been integral to economic theory for decades and price discrimination, the technique of charging different prices to different customers for the same or similar goods, is well-established. This observation provides the central core of this book. The methods of price discrimination are set out in detail, showing how management accountants can bring their analytical skills to bear in helping executives and pricing professionals take advantage of differences in customer valuation to improve profits.
The book provides a thorough overview of the field and offers a good introduction for researchers and students. Equally, the book shows managers, marketers and pricing professionals how management accountants can assist them in delivering better pricing practice.
Biography
David Dugdale is Emeritus Professor of Management Accounting at the University of Bristol, UK. He was awarded the CIMA Shield for services to the Institute in 2002 and a Lifetime Achievement Award by the British Accounting and Finance Association in 2014.
"Historically, pricing has been largely cost-based, driven by information from accounting. The book Strategic Pricing and Management Accounting by David Dugdale convincingly highlights how management accounting can drive strategic pricing, by complementing cost information with information on customer value and on competitors. This book will enable management accountants to drive profits via pricing: highly recommended."
— Andreas Hinterhuber, Associate Professor of Marketing, Ca' Foscari University, Equity partner, Hinterhuber & Partners
"My sense is that it is the most comprehensive and up to date modern book on management accounting and pricing. Dugdale’s book encompasses a huge knowledge base in this area interspersed with valuable practical examples and illustrations. The book will be regarded, for a long time, as the ‘go to place’ for any executive or student concerned with pricing issues tied to management accounting and strategic decision making."
— Alnoor Bhimani, Professor of Management Accounting, Department of Accounting & Director, South Asia Centre, London School of Economics and Political Science
"A must read for aspiring and seasoned Management Accountants as well as anyone interested in boosting company performance through pricing! Using real life examples and illustrative calculations, David Dugdale manages to strike the perfect balance between academic textbook and practical guidelines. It will be a staple in my professional toolbox."
— Daniel Antoine, Vice President Performance Management and Controlling, IGEL Technology Corporation
