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Description
In this book, the world’s foremost experts on pricing integrate theoretical rigor and practical application to present a comprehensive resource that covers all areas of the field. This volume brings together quantitative and qualitative approaches and highlights the most current innovations in theory and practice.
Going beyond the traditional constraints of “price theory” and “price policy,” the authors coined the term “price management” to represent a holistic approach to pricing strategy and tactical implementation. They remind us that the Ancient Romans used one word, pretium, to mean both price and value. This is the fundamental philosophy that drives successful price management where producer and customer meet.
Featuring dozens of examples and case studies drawn from their extensive research, consulting, and teaching around the world, Simon and Fassnacht cover all aspects of pricing following the price management process with its four phases: strategy, analysis, decision, and implementation. Thereby, the authors take into account the nuances across industry sectors, including consumer goods, industrial products, services, and trade/distribution. In particular, they address the implications of technological advancements, such as the Internet and new measurement and sensor technologies that have led to a wealth of price management innovations, such as flat rates, freemium, pay-per-use, or pay-what-you-want. They also address the emergence of new price metrics, Big Data applications, two-sided price systems, negative prices, and the sharing economy, as well as emerging payment systems such as bitcoin.
The result is a “bible” for leaders who recognize that price is not only a means to drive profit in the short term, but a tool to generate sustained growth in shareholder value over the longer term, and a primer for researchers, instructors, and students alike.
Praise for Price Management
“This book is truly state of the art and the most comprehensive work in price management.”
- Prof. Philip Kotler, Kellogg School of Management, Northwestern University
“This very important book builds an outstanding bridge between science and practice.“
- Kasper Rorsted, CEO, Adidas
“This book provides practical guidelines on value creation, communication and management, which is an imperative for businesses to survive in the coming era of uncertainty.”
- Dr. Chang-Gyu Hwang, Chairman and CEO, KT Corporation (Korea Telecom)
Table of Contents
1. Fundamentals of Price Management.- 2. Price Strategy.- 3. Analysis: The Economics of Price.- 4. Analysis: The Psychology of Price.- 5. Decision: One-dimensional Prices.- 6. Decision: Multi-dimensional Prices.- 7. Decision: Long-term Price Optimization.- 8. Price Management and Institutional Context.- 9. Implementation.- 10. Price Management for Consumer Goods.- 11. Price Management for Industrial Goods.- 12. Price Management for Services.- 13. Price Management for Retailers.- 14. Innovations in Price Management.
