1. pricing should complement company's marketing strategy
2. don't use cost+ pricing
3. range of feasible price: EVC (Economic Value to Customer)
4. best price from the range:?
-demand analysis and profit maxinmization
-competitor's strategy
5. methods to access willingness to pay (price sensitivity)
? expert judgement
? customer surveys
? conjoint analysis
? price experiments?
? analysis of historical market data
6. elasticity pricing
7. historical data: choice model
8. conjoint analysis
9. price discrimination:?
look for variation in the way customers value the product,? offer price schemes targeted to different segments
10. pricing psychology
? anchoring:?
a cognitive bias that describes the common human tendency to rely too heavily on the first piece of information offered (the "anchor") when making decisions.
? reference price
-framing
-endownment: the hypothesis that people ascribe more value to things merely because they own them
-order effect
11. summary:
pricing factors
