Indian Institute of Management Rohtak

Course Outline

Course Title : Pricing Strategies

Credits : 0.75 Sessions: 14
Type : Elective
Session Duration : 75 minutes
Term : VI
Year : 2019-20
Faculty : Prantosh J. Banerjee
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Introduction

Of the 4Ps in marketing, pricing is the only P that generates revenues for the firm. Pricing
decisions tend to have both short term and long term influence and they impact both the
top line as well as bottom line for firms. Therefore, they may be monitored by senior
management of firms. Pricing decisions are affected by economic, marketing,
organizational, and psychological factors, and are made within a prescribed legal
framework.

This course helps develop amongst the participants an appreciation of the importance of
pricing. It helps develop participants’ conceptual abilities, knowledge and analysis in the
field of pricing and helps them develop a systematic framework for understanding,
assessing, formulating and implementing pricing policies and approaches.

Course Objectives

This course provides an opportunity for the participants to understand pricing concepts
and develop a systematic framework for formulating and implementing pricing
approaches within the context of a business decision. The course is about understanding
the process of making pricing decisions. The course would combine both, developing a
proper pricing perspective, and using relevant tools in setting and implementing a price
approach. At the end of the course, a participant should have developed a framework for
thinking about pricing that can be applied to the contemporary workplace.

Pedagogy

The pedagogy would be a mix of Lecture, Class Discussion, Case Analysis, Assignments
and Project Work. The class would be divided into groups of 4-6 members each. For each

1
class session, each group is required to submit a case analysis (consisting of 5
PowerPoint slides) as per the session schedule. An Excel file may be used additionally if
required. Two groups (selected randomly) are required to present the class case; each
presentation should be of a maximum of 6 minutes plus time for 2 questions; a maximum
of 5 PowerPoint slides may be used for the presentation. The presentations are evaluated.
The case analysis should contain the following:
a) Background (may use 5 Cs Framework)
b) Decision Problem
c) Alternatives
d) Evaluation of Alternatives (with an appropriate Framework)
e) Recommended Action & its implications.
Each group is also required to do a Group Project. Details of the Group Project will be
provided at the beginning of Session 4.

Evaluation Scheme
Assignments/Case Presentations: 20%
Project work & Presentation: 20%
Mid Term Exam: 30%
Final Exam: 30%

Brief Outline
Mention the names of the main modules of the course here.
Part I: Pricing Goals & Value-based pricing
Part II: Psychological Pricing; Dynamic Pricing
Part III: Gain-sharing Pricing; Price Wars

References
1. Text Books:
Thomas Nagle, John Hogan and Joseph Zale: “The Strategy and Tactics of
Pricing.” 5th Edition / Latest Edition (referred to as “Nagle” in the
Schedule of Sessions).

2. Other Readings (To be arranged by students): May be given later

3. Other Materials (To be provided in course pack)
a) Other Selected Readings
b) Selected Cases

2
 Session Plan
Topic Session Topic Reference Case
No. No. (Book chapter / Readings)
a) Nagle: Chapter 1
b) Tellis, G. J. (1986). Beyond the
many faces of price: an Chandrashekhar R (2010),
Introduction to
integration of pricing strategies. Parle-G, #910A22, Ivey
1 1&2 Pricing; Role of
The Journal of Marketing, 146- Publishing
Costs in Pricing
160
c) Nagle: Chapter 9

a) Mazumdar, T., Raj, S. P., &

Sinha, I. (2005). Reference
price research: Review and
propositions. Journal of
marketing, 69(4), 84-102.
b) Xia, L., Monroe, K. B., & Cox, Gourville, J.A. & Bertini,
Pricing Goals: J. L. (2004). This price is M. (2009). The London
2 3&4 Value Based unfair! A conceptual framework 2012 Olympic Games,
Pricing of price fairness perceptions. (HBS# 510039)
Journal of marketing, 68(4), 1-
15.
c) Dolan, Robert J. (1999).
Pricing: A Value Based
Approach (HBS Note # 9-500-
071)

a) Thaler, Richard (1985), “Mental

Accounting and Consumer
Psychological Choice,” Marketing Science,
Pricing: Price 4(3), 199-214. Robinson, D and
Framing and b) Janiszewski, Chris and Marcus Ostersdorf, (2013),
Mental DaCunha Jr. (2004), “The Netflix: Pricing Decision
3 5&6 Accounting; influence of price discount 2011 MA: University of
Consumer framing on the evaluation of a California, Berkley.
Evaluation of product bundle”, Journal of
Price Bundles Consumer Research, 30
(March), 534-546.

3
 a) Sahay Arvind (2007), “How to
Dynamic Reap Higher Profits With Avari Ramada
Pricing: Dynamic Pricing” MIT Sloan Renaissance Hotel
4 7&8 Demand and Management Review (#SMR (Stanford Business
Time Based 254) School: Case # M-314)
Pricing

a) Dolan, Robert J. (1995). How Sawhney, M. (2004).

Do You Know When the Price Trilogy Corporation
Pricing and is Right. Harvard Business Customer Value based
5 9 & 10 pricing, KEL 106,
Sharing Gains Review, (September-October),
4-11. Kellogg School of
Management

Gupta, Seema; Mishra,

a) Nagle Chapter 10 & Chapter 11
b) Rao, Akshay, Mark E. Bergen
and Scott Davis (2000), “How
Price Wars and to Fight a Price War,” Harvard
6 11 & 12
Price Signaling Business Review, (March-
April), 107-116.
Kanchan; Ashish
Maheshwari (2013).
Procter & Gamble India:
Gap in the Product
Portfolio? (IMB# 433
Indian Institute of
Management, Bangalore)

Project
7 13 & 14 Presentations; --- ---
Course wrap-up

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