X

Economic foundations of Pricing

By Sreelata Jonnalagedda   |   IIM Bangalore
Learners enrolled: 6025

This course starts with a basic understanding of the classical theory of pricing. It then progresses towards understanding and analysing cost-based pricing heuristics, demand curve analysis, and competition-based pricing. Pricing products or services is a challenging decision for many business owners. 

What is a good starting point for sound pricing decisions? This course provides an economic framework that lays the foundation for good pricing decisions. This course delves into the impact of cost, competition, and customer side factors on pricing. The course also goes into the company objectives that shape pricing goals. This course also covers the repercussions of pricing in the most recent and globally transformative event (i.e., COVID19).








Summary
Course Status : Completed
Course Type : Core
Duration : 6 weeks
Category :
  • Management Studies
Credit Points : 2
Level : Postgraduate
Start Date : 31 Jan 2023
End Date : 30 Apr 2023
Enrollment Ends : 15 Mar 2023
Exam Date :

Page Visits



Course layout

Week1 : Economic foundations of Pricing
1. What is market clearing price?
2. Understand price setters vs price takers, supply and demand curves.
3. Covid price increases/decreases/no-change

Week 2: Fundamentals of Demand or Customer point of view
1. What is demand?
2. Price response functions
3. Revenue maximization
4. Elasticity

Week 3: Cost based pricing decisions
1. Terms: (marginal cost, fixed cost, incremental cost), CM, operating margin, %margin, mark-up
2. Price optimization
3. Break-even sales change

Week 4: Competition and Objectives
1. Competition based heuristics
2. Understanding objectives and economic framework

Week 5: Economics of Multiproduct Pricing
1. Demand curves and pricing
2. Price discrimination
3. Game theory

Instructor bio

Sreelata Jonnalagedda is an Associate Professor in the Marketing department at the Indian Institute of Management Bangalore. Dr Jonnalagedda currently teaches Pricing and Marketing Management for MBA students and Marketing Models for doctoral students.
In her research, Dr Jonnalagedda aims to understand the incentive structures that drive pricing (on the sellers’ end) and purchase behaviour (consumers’ end). Structuring the price of innovative, durable products and understanding how bundles, retail prices and assortment choices influence consumer perceptions are her research interests. Her more expansive areas of research include pricing, market design, digital pricing, and auctions. Her work has been published in leading journals such as Management Science, Manufacturing & Service Operations Management, and the IIMB Management Review.
Dr Jonnalagedda has advised many start-ups. She has consulted in pricing and marketing innovation domains for the Tea Board of India and start-ups in digital space such as VerbStudio, 91 Springboard, InMobi, Red Force Labs, etc.

Course certificate


Grading Policy:

There will be (a)
one Mid-term Internal Assessment and (b) one Final Exam.

Weightage:
  • Mid-term Internal Assessment: This will carry 25% weightage. This mid term will have questions from first three weeks.
  • Final Exam: This will carry 75% weightage.  This final exam will have questions from all the weeks.
Passing Marks:
  • You will be eligible for a certificate only if you score minimum 40% in Mid-term Internal Assessment and minimum 40% in Final Exam. 
Badge on Certificate:
  • If you score 90% or more overall, your certificate will include "badge (gold)" printed.

Final Examination
:

  • Type of exam: Computer based exam 
  • Exam Center: You will have to appear at the allotted exam centre and take the exam in person. (You can find the final allotted exam centre details in the admit card (hall ticket)).
  • Admit Card: You can download the Admit card (Hall ticket) around one week before the exam. 
  • QP Pattern: The type of questions may include multiple choice questions, fill in the blanks, essay type (subjective) type, etc. But generally MCQs are commonly provided.



MHRD logo Swayam logo

DOWNLOAD APP

Goto google play store

FOLLOW US