This article discusses many of the behavioral aspects of effective pricing strategies. For example, the authors suggest that choosing prices that end in the number nine signals a bargain to customers and therefore increases sales. This article complements J. Gourville’s ‘‘Note on Behavioral Pricing” that is also included in this bibliography. These two readings can be used to broaden the discussion of pricing to recognize the fascinating reality of how human behavioral tendencies influence the pricing process.
Baye, Gatti, Kaufman, and Morgan (2007). A dashboard for online pricing. California Management Review (Fall), 202–216.
This article discusses online pricing strategies. Several case studies are presented for companies whose prices are listed at a price comparison website called Kelkoo.
Berman (2005). Applying yield management pricing to your service business. Business Horizons
(March/April), 169–179.
This article describes how service companies use yield management pricing to earn higher revenues from their fixed capacity of available resources. It explains an eight-step yield management pricing implementation process. Yield management is an excellent topic that allows professors to expose their students to how service companies manage the real-world complexities that influence pricing decisions.
Corey (1982). Note on pricing strategies for industrial products. Harvard Business School Publishing (pp. 1–17).
This reading provides a comprehensive overview of many factors that influence pricing decisions including cost-based pricing, customer value and the willingness to pay, price elasticity of demand, the impact of competitors on pricing, and customer bargaining power.
Dean (1976). Pricing policies for new products. Harvard Business Review (November–December), 141–153.
This classic article explains how products should be priced and repriced over their life cycle. It compares price skimming and penetration pricing strategies for new products.
Dolan (1995). How do you know when the price is right? Harvard Business Review (September–
October), 174–183.
The author describes eight steps to better pricing. These steps include assessing what value customers place on a product or service, assessing customers’ price sensitivity, and analyzing
whether the revenue generated is worth the cost to serve. It offers excellent practical pricing
advice. 本文来自辣'文,论-文·网原文请找腾讯3249'114
Dolan and Gourville (2005). Principles of pricing. Harvard Business School Publishing (pp. 1–10).
This reading provides an in-depth discussion of value-pricing. It provides an interesting discussion of how to assess a product’s objective value to customers and the product’s perceived value to customers. It can be used to expand the scope of discussion to include a broad overview of real-world pricing challenges.
Gourville (1999). Note on behavioral pricing. Harvard Business School Publishing, 1–12.
This reading highlights the fact that most companies are well informed regarding the cost of their products, but far fewer companies are well informed regarding their customers’ willingness to pay for their products. It also highlights the fact that a customer’s willingness to pay is not only influenced by rational judgments about the economic utility of a product, but also by psychological factors that are not necessarily rational.
Indounas (2006). Making effective pricing decisions. Business Horizons, 49, 415–424.
This article advocates contribution margin based pricing. The author argues that his approach is unique because it simultaneously considers cost-based, competition-based, and demand-based pricing methods.
Morrogh and Zhiwei (1995). Full-cost pricing: A pricing strategy for a job shop. Production & Inventory Management Journal, 36, 68–73.
This article provides a rich description of full cost-plus pricing. It can be used in a debate format to educate those students charged with defending cost-plus pricing.
Sahay (2007). How to reap higher profits with dynamic pricing. MIT Sloan Management Review
(Summer), 53–60.
This article can be used by professors who want to complement the University Tees case with a broader discussion of some interesting real-world pricing challenges. Dynamic pricing refers to the practice of adjusting prices in real time in response to supply and demand pressures. Dynamic pricing has been used by airlines and hotels for many years; however, the authors contend that it is increasingly being used in a variety of industries including apparel, automobiles, consumer electronics, and telecommunications.
Shapiro (1998). Precision pricing for profit in the new world order. Harvard Business School Publishing (pp. 1–16).
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