Pricing Of Products & Services

The price of a product or a service is a critical element of the marketing mix. This book provides business students and practitioners with the tools to make profitable pricing decisions under a variety of real-life contexts. It combines theoretical foundations from microeconomics, psychology, and behavioral decision theories with practical guidelines and quantitative approaches.

\n Format: Hardback
\n Length: 376 pages
\n Publication date: 04 January 2021
\n Publisher: World Scientific Publishing Co Pte Ltd
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The price of a product or a service is a crucial component of the marketing mix, as it profoundly influences product demand, revenue, and profits for the firm. Moreover, prices serve as a signal for product quality and value, customer self-image, and the seller's pricing practices. To make informed pricing decisions that lead to profitability, business students and practitioners need a comprehensive understanding of pricing theory, applications, and analytics.

Theoretical Foundations for Pricing Decisions:

Pricing decisions are grounded in various theoretical frameworks, including microeconomics, psychology, and behavioral decision theories. Microeconomics provides insights into the supply and demand dynamics, while psychology explores consumer behavior and decision-making processes. Behavioral decision theories further shed light on how individuals perceive and respond to prices.

Well-established economic principles, coupled with readily available data and analytics, enable firms to customize prices based on factors such as customer willingness to pay, quantity purchased, timing and urgency of purchase, and by bundling their products and services. By understanding the customer's valuation of the product or service, firm costs, and competition within the category, firms can develop pricing strategies that align with their objectives.

Pricing and Promotional Strategies:

In addition to considering economic factors, firms must also consider consumer psychology and the decision rules that consumers employ when framing and responding to prices. Consumer psychology encompasses the study of consumer behavior, preferences, and decision-making processes. By understanding consumer motivations and preferences, firms can tailor their pricing and promotional strategies to resonate with their target audience.

A practical step-by-step guide for firms, this book presents a comprehensive framework for pricing decisions. The framework illustrates how firms can shape their pricing decisions by considering customer valuation of the product or service, firm costs, and competition within the category. Additional considerations include channel arrangements, legal and regulatory limits, public sentiments, and the overarching strategy for the firm.

Short cases and numerical examples are provided to illustrate how these factors can be incorporated into firm-making decisions. The book adopts a quantitative approach to pricing decisions, emphasizing the importance of data analysis and quantitative methods in pricing strategy development.

Distinctive Features of the Book:

Pedagogically, the book takes a quantitative approach to pricing decisions, emphasizing the importance of data analysis and quantitative methods in pricing strategy development. It provides a clear and concise explanation of pricing concepts and theories, making it accessible to business students and practitioners with a range of backgrounds.

Furthermore, the book places a special emphasis on practical applications and case studies, allowing readers to apply the theoretical principles to real-life situations. The cases and examples are drawn from various industries and sectors, providing a diverse perspective on pricing strategies.

Conclusion:

In conclusion, the price of a product or a service is a critical element of the marketing mix, and pricing decisions have a profound impact on the firm's success. By understanding the theoretical foundations, applying appropriate pricing strategies, and considering consumer psychology, firms can make informed pricing decisions that lead to profitability. This book provides a comprehensive framework for pricing decisions, combining theory, applications, and analytics to equip business students and practitioners with the tools they need to succeed in today's competitive market.

\n Weight: 690g\n
Dimension: 159 x 235 x 28 (mm)\n
ISBN-13: 9789811204173\n \n