Pricing Of Products & Services

The of a product or a service is a critical element of the marketing mix. influences product demand, and the firm’s revenue, and profits. s also signal product quality and value, customer self-image, and the seller’s pricing practices. With appropriate balance of theory, applications, and analytics, this book provides business students and practitioners the tools to make profitable pricing decisions under a variety of real-life contexts – current and emerging. Theoretical foundations for pricing decisions come from microeconomics, psychology, and behavioral decision theories. Well-established economic principles, with available data and analytics, help firms customize s based on customers’ willingness to pay, quantity purchased, timing and urgency of purchase, and by bundling their products and services. Pricing and promotional strategies of firms are further informed by the consideration of consumer psychology as well as the decision rules that consumers employ in framing of and responding to s. As a practical step-by-step guide for firms, the book presents a comprehensive framework for pricing decisions.