85265 - Value Pricing Laboratory

Learning outcomes

This laboratory aims teaching students how to price and services by providing a comprehensive framework for understanding pricing strategies and tactics. The course addresses issues such as price elasticities, economic value analysis, value perception and price customization.

Course contents

This module is based on a theoretical and methodological approach to customer value measurement. Providing a comprehensive framework for understanding pricing strategies and tactics, students attending the Value Pricing laboratory will learn how to define effectively the price of products and services. In particular, using hands-on assignments, students will be able to translate the theoretical foundations delivered in class into robust marketing insights.

The general content that we will be dealing with includes:

1) Segmentation, Targeting and Positioning

2) Cluster analysis and customer segmentation

3) Multi-dimensional scaling and perceptual maps

5) Pricing and Promotion Strategies

6) Conjoint Analysis and pricing/product decision

7) Customer Satisfaction measurement and analysis

8) Experimental designs  

Readings/Bibliography

Classes will be mostly in the lab as the course is practical in its nature. There is not one specific manual that is being adopted.

Specific readings/articles will be assigned throughout the semester by the Professor. 

Some examples of these articles include:

Kim, J.-Y., Natter, M., & Spann, M. (2009). Pay what you Want: A New Participative Pricing Mechanism. Journal of Marketing, 73(1), 44–58. https://doi.org/10.1509/jmkg.73.1.044.

Koçaş, C., & Bohlmann, J. D. (2008). Segmented Switchers and Retailer Pricing Strategies. Journal of Marketing, 72(3), 124–142. https://doi.org/10.1509/JMKG.72.3.124.

Daniel Sheehan and others, When Is HILO Low? Price Image Formation Based on Frequency versus Depth Pricing Strategies, Journal of Consumer Research, Volume 49, Issue 4, December 2022, Pages 543–560, https://doi.org/10.1093/jcr/ucac005.

Teaching methods

The course teaching methods include lectures, laboratory, and group project work. Through these learning methods, students will be able to apply the concepts and techniques that have been analyzed during the course to real pricing problems and settings.

Assessment methods

Class attendance and participation in team-work assignments is strongly encouraged. Students will be asked to work in group on a project and to present in class the results and the managerial insights of their project.

Course evaluation differs depending on the participation in team-work assignments.

Students participating in team-work assignments:

70% final written exam

30% team-work assignment

Students who do not participate in team-work assignments:

100% final written exam

The final written exam for the Laboratory of Value Pricing consists in the interpretation of SPSS outputs in light of the theory studied in class.

The grades of the two module exams will be averaged to compute the “final written exam” grade.

The graduation of the final grade is as follows:

• 18-19: knowledge of a very limited number of topics covered in the course and analytical skills that emerge only with the help of the teacher, expressed in an overall correct language;
• 20-24: knowledge of a limited number of topics covered in the course and ability to autonomous analysis only on purely executive matters, expression in correct language;
• 25-29: good knowledge of a large number of topics covered in the course, ability to make independent choices of critical analysis, mastery of specific terminology;
• 30-30L: Excellent knowledge of the topics covered in the course, ability to make autonomous choices of critical analysis and connection, full mastery of specific terminology and ability to argue and self-reflection.

Teaching tools

SPSS

Office hours

See the website of Stefania Farace