Ateneo - UPO

Price is one of the most significant marketing mix components and has a significant impact on business profitability in the short and long term. The economic principles behind the adoption of a suitable pricing strategy are analyzed, in relation with the type of product (or service) and the degree of market competition. A particular emphasis is given to the most innovative pricing strategies, price management on the web, dynamic pricing strategies, and revenue management.

Slides, additional materials and readings are provided by the lecturer through the website, at the URL. https://www.dir.uniupo.it

In addition, the following textbooks represent a valid support.

1) H. Simon, D. Zatta, M. Fassnacht (2013). Price management: Strategia, analisi e determinazione del prezzo. Franco Angeli Editore.

2) G. Abrate (2020). Pricing e creazione di valore. Strumenti ed applicazioni manageriali. Aracne Editrice

3) Phillips, R. L. (2021). Pricing and revenue optimization. Stanford university press.

The course aims to provide students with the tools to understand the economic, psychological, and operational principles underlying pricing decisions, enabling them to formulate effective pricing, market segmentation, and revenue management strategies tailored to the specific competitive and business context.
The course is delivered entirely in person and combines lecture-based learning (75%) with interactive teaching (25%).

None

Lectures, exercises and group discussions.

Students with physical disabilities, Learning Disabilities or Special Education Needs can request specific services and tools via the Staff Sviluppo e Coordinamento Carriere e Servizi alle Studentesse e agli Studenti, consulting the University webpage: https://www.uniupo.it/en/services/servicesstudents-physical-or-learning-disabilities.
Students with disabilities, learning disabilities or special education needs, once they have contacted the University Staff, can refer to the tutor in charge of the course to define the examination modalities, concerning academic aspects.

The exam is written. The 25% of the final course grade (8 points) is based on individual and group works that will be proposed during the lectures. For students who do not participate in group works, an additional question, based on specific readings, will be included in the written exams. The remaining 75% of the exam, for all students, consists of a theoretical part and an applied part. The theoretical part (maximum score 11 points) aims at verifying knowledge and understanding of the program and is composed of closed-ended questions. The applied part (maximum score 14 points) tests the ability to apply knowledge and making judgments, through a problem set composed of several questions.

-The strategic role of price and its impact on profitability
- The basic elements of pricing decisions: costs, market demand and competition. From the cost-based approach to the value-based approach: benefits and complexity.
- Economic analysis: willingness to pay and demand elasticity. Competition, market power and strategic reactions.
- Psychological aspects of consumer behavior. The contribution of prospect theory.
- Price optimization for individual products and multiple products.
- Market segmentation and price differentiation. Analysis of specific pricing strategies: nonlinear prices, price bundling, versioning.
- Managing price variations over time: strategic and tactical decisions.
- Skimming and penetration strategies.
- Peak load pricing: static and dynamic approach.
- Short-term price management. Revenue management and dynamic pricing strategies. Applications to specific industries.
- Internet pricing management. The role of online platforms. The relationship between pricing strategies and online reputation (E-WOM).
- Pricing and the sharing economy.
- Empirical models for estimating the willingness to pay. The "hedonic" pricing model. The role of reputational quality.

- Knowledge of the role of pricing strategies within business management.
- Understanding the economic, psychological and operational principles behind pricing decisions.
- Ability to apply price management models to formulate pricing decisions in specific contexts.
- Critical evaluation of the strategic and economic impact of pricing decisions.
- Ability to work in teams and communicate effectively, examining topics through group work and presenting the results clearly and concisely.

To achieve a passing grade, knowledge and understanding of the core content and the ability to apply models in standard contexts are required.
For an advanced level, a comprehensive and in-depth understanding, along with a clear and coherent overview of the topics covered, is required. Additionally, the ability to apply models to complex scenarios and to critically analyze the results achieved (both individually and through group interaction) is expected.