Lifelong Learning – Pricing Strategy
This one-day pricing strategy certificate program provides specialized education to equip participants with knowledge and skills related to developing pricing strategies driven by consumer research and insights. This course will examine general strategies, as well as introduce conjoint analysis as a tool that can be used to assess willingness-to-pay.
Participants will gain an understanding of the three main economic perspectives on pricing (cost-based, competitive, value), learn about the psychological effect on consumers of various pricing strategies, and how to use conjoint analysis as a tool to inform pricing decisions.
Course Overview
By the end of the program, participants should be able to:
- Develop a holistic view of pricing using three different perspectives.
- Understand the psychological effect of pricing and how to leverage these psychological effects to shift consumer focus and perception.
- Conceptualize and evaluate the output of conjoint analysis.
- Use conjoint analysis to inform pricing strategy.
Session 1: Value Pricing and Using Conjoint Analysis to Establish Willingness-to-Pay
The introductory session will briefly introduce the three main economic methods used to set pricing strategies: cost-based, competitive, and value-based pricing. Value-based pricing strategies require estimates of willingness-to-pay (WTP). One technique that can be used to establish WTP is conjoint analysis. In this session, we will discuss the conceptual underpinnings of conjoint analysis and how it can be applied to various business contexts.
Session 2: Designing and Evaluating Conjoint Analyses
Using a real-life example from the sports industry, we will discuss the challenges in designing a conjoint analysis and how to develop a constructive skepticism of its results.
Session 3: Interpreting Conjoint Analysis Results and Translating Insights into Action
Using a conjoint example from the media and technology sector, we will continue discussing the interpretation of conjoint output and how to translate its results into specific pricing strategies and actions.
Session 4: The Psychological Effects of Pricing
Building a compelling consumer-driven pricing strategy requires more than just estimates of WTP. In our final session, we will examine the role that pricing strategies have on consumer perceptions of the brand and offering. We will see how the prices seen by consumers can influence their comprehension of value, their perceptions of equity, their decision at the point-of-sale, and their post-purchase product usage. We end by discussing a 10-step process that can be used to aid in setting a pricing strategy.