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Pricing Strategies

Pricing Strategies
Harvesting Product Value

Second Edition


March 2023 | 416 pages | SAGE Publications Ltd

Written by a leading pricing researcher, this book provides a simple unified system for the setting and management of prices. The pricing procedures described are grounded in basic research and are generally applicable over products, situations, and times. The result is that students gain a deeper, more generally useful understanding of this essential aspect of business.

The author demystifies the math necessary for making pricing decisions.  Using clear, direct language, he explains in detail how to apply expected value, multiple regression, price elasticity, and generalized breakeven analysis to essential pricing tasks.  He uses a descriptive approach to explaining mathematical techniques so that formulas can be seen as simply more detailed specifications of intuitive ideas.

Used in dozens of college and MBA classes all over the world, Pricing Strategies is now available in a second edition. This revised edition includes updated examples and exercises as well as expanded coverage of topics such as freemium and in-app pricing, subscriptions, tipping, pay-what-you-want pricing, pricing algorithms, and dynamic pricing.

Robert M. Schindler is a Professor of Marketing at Rutgers University, USA.

Pricing as an Element of the Marketing Mix
Part I. Setting of Initial Prices
Starting Points for Setting an Initial Price
Assessing Value to the Customer
Basic Pricing Strategies and Breakeven Analysis
Part II. Modification of Existing Prices
The Generalized Breakeven Formula and Its Use
Predicting Price-Change Response: Economic and Competitive Factors
Predicting Price-Change Response: Knowledge-Related Factors
Predicting Price-Change Response: Feeling-Related Factors
Empirical Measurement of Price-Change Response
Part III. Developing a Price Structure
Fences for Price Segmentation
Time as a Price-Segmentation Fence
Place as a Price-Segmentation Fence
Pricing to the Less-Informed Segment
Pricing of Interrelated Products
Part IV. Flexible Pricing
Auctions and Competitive Bidding
Negotiation and Participatory Pricing
Systematizing Pricing Decisions
Societal Implications of Pricing
Key features

· Provides a simple, consistent framework, organized around setting initial prices, improving existing prices, considering different prices for different market segments, and considering product interrelations.

· Uses only a small number of mathematical techniques, which are explained intuitively, such as expected value, multiple regression, and a more general form of the familiar business technique of breakeven analysis.

· Considers pricing in the context of customer behavior by extensively reviewing behavioral research to demonstrate that, rather than being a footnote on the limits of rational pricing, psychological factors are central to core pricing questions.

· Places pricing on firm ethical grounds by showing how the management of pricing benefits from a sensitivity to, and continual consideration of, the feelings and needs of customers.

· Connects the wide variety of pricing practices to a small number of key ideas and relies on plain-language terms and examples that, even through our rapidly changing technological environment, are likely to endure.

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ISBN: 9781526494412

ISBN: 9781526494429