EPGP-Platform

Quarter-VI
(May - August)

Pricing – A Managerial Perspective

(Credit 2)

Institute Name: IIM Kozhikode

Course Description:

Pricing is not only a way of assigning value to market offerings. It is a signaling mechanism
for both enterprises as well as customers. It also is the most amenable instrument in the
marketing mix kit. With technologies impacting how customers interact and transact it has
also transformed enterprises, large and small. Amidst this, pricing is one of the most
responsive and readily available tools for managers involved in decision making to deal
with any change in the external business environment.

The course begins by familiarizing the participants with the basic concepts in pricing. As
we proceed further, the nuances and the emerging issues in a digital landscape are
discussed.

Learning Objectives:
The broad objectives of this course leading to achievement of sub-goal 3.1 are:

(ACCSB Sub Goal 3.1: Critically analyse situations to suggest innovative future growth
opportunities)

1. To help develop an understanding of the theoretical concepts of pricing at the

intersection of multiple disciplines

2. To familiarize with various aspects of pricing as a decision-making tool for

managers (Sub goal 3.1)

Pedagogy:

The suggested readings include book chapters from the reference book, business articles
and research articles from reputed journals. In every session, 20-30 minutes would be
devoted to the discussion of basic concepts covered in the book chapter(s) or journal
articles.

Evaluation

Assessment Methods in Alignment with Intended Learning Outcomes

Students will be evaluated on the basis of case analysis, project, quizzes, class participation,
individual assignments, and end-term exam. The weightage given to each of these units is
listed below:

Specific Assessment Method Weightage Intended subject learning outcome (3.1)

to be assessed
Class Participation/Individual 10% This component will be evaluated based on
submissions active and meaningful participation in the
class.
Quizzes 20% Detailed instructions to be provided later.
Group Project 30% The group project will require members to
apply classroom learning to a real-life
business context. The details of the project
would be shared later in class.
End-term 40% Some problems of end-term will be the tool
for AACSB assessment*

*ACCSB Sub Goal 3.1 to be accessed in the course: Critically analyse situations to
suggest innovative growth opportunities.

Group Project

The group project will be one of the most important learning tools of the course. Each
group will consist of five-six students. The group project will require members to apply
classroom learning to a real-life business context. The details of the project would be
shared later in class.

Group Project Report: A project report in the recommended format shall be submitted by
each group as per the deadline announced. Guidelines and report format provided at the
end.

Recommended Text Book / Reference Book / Journals / Website

Text Book*
 The Strategy and Tactics of Pricing: A Guide to Growing More Profitably (6th
Edition; Special Indian edition) by Thomas Nagle & Georg Müller. Routledge
Exclusively distributed by Sarat Book Distribution in India

*Referred to as Nagle in the session plan

Reference Books
 Pricing strategy: Setting Price levels, Managing Price discounts, and Establishing
Price Structures, Tim Smith, Cengage Learning, 20yy.
Journals
 Journal of Consumer Research
 Journal of Marketing Research
 Journal of Marketing
 Marketing Science
 Harvard Business Review

Pre-readings
 Pricing Strategy: Robert J. Dolan and John T. Gourville , Harvard Business
Publishing, June 30, 2014
Course Outline: Sessions / Cases / Case Problems / Reading Material

Session Topic Reading Material/Case

Module 1: Pricing Concepts
Session 1&2 Introduction: Economic
foundations and consumer’s
perceptions around response to
prices
Readings
• Nagle Chapter 1&2
• Nagle, T. (1984). Economic foundations for
pricing. Journal of Business, S3-S26
Case: Microsoft Windows: The launch of
Windows 7

Module 2: Pricing strategy and policy

Value-based pricing and value
Session 3&4 communication, pricing over
the product life cycle
Readings
• Nagle Chapter 3
• Leszinski and Marn (1997). Setting Value, Not
Price. McKinsey Quarterly, 98-116
• Dolan, Robert J. (1999). Pricing: A Value-
Based Approach, Boston, MA: Harvard
Business School Publishing
• Berry, L. L., & Yadav, M. S. (1996). Capture
and communicate value in the pricing of
services. MIT Sloan Management Review,
37(4), 41.

Case: Pricing at Netflix

Readings
• Nagle Chapter 8, 9
Session 5&6 Financial analysis in pricing • Marn and Rosiello (1992), “Managing Price,
decisions Gaining Profit,” HBR Sept-Oct, 84-93.

Case: Hanson Production: Pricing for Opening

Day

Session 7&8 Setting the price “right”:
Price Policy and Price Setting;
Pricing and Distribution
Session 9&10 Channel
Pricing Innovation;
Price competition and price
Session 11&12 wars
Session 13 &14 Pricing and Business Model
Innovation; Adapting pricing
to recession
Module 3: Other aspects of Pricing
Pricing research in marketing;
Session 15&16 Legal, ethical and fairness
issues in pricing
Readings
• Nagle Chapter 4
Marn and Rosiello (1992), “Managing Price,
Gaining Profit,” HBR Sept-Oct, 84-93.
• Case: Ekohealth: Developing Price Structures
Readings
• Nagle Chapter 5& 6
Pricing Strategy: Robert J. Dolan and John T.
Gourville , Harvard Business Publishing, June
30, 2014
 Case: Showrooming at BestBuy
 Case: Culinarian Cookware: Pondering
Price Promotion
Readings
 Berry, L. L., & Yadav, M. S. (1996).
Capture and communicate value in the
pricing of services. MIT Sloan
Management Review, 37(4), 41.
 Nagle Chapter 7
 Ritson, Mark. “Should you launch a
fighter brand.” Harvard Business
Review 87.10 (2009): 86-94.
Case: AnswerDash
Readings
• Nagle Chapter 10
 Amit, R., & Zott, C. (2012). Creating value
through business model innovation. MIT
Sloan Management Review
• Rafi Mohammed, “Ditch the discounts”.
Harvard Business Review, January 2011
• David Rhodes and Daniel Stelter, “Seize
advantage in a downturn”. Harvard Business
Review, February 2009
Case: The Eleganzia Group
Case: Delhi Metro Airport Express Line:
Making it Viable
Readings
 Nagle, Chapter 8
 Nagle, Chapter 12
 Conjoint Analysis: A Manager’s Guide, R.
Dolan, HBS, 1990.
 Case: Case: Pricing the EpiPen: This is Going to
Sting
Case: Basecamp: Pricing

Prepared by Nivedita Bhanja, Indian Institute of Management Kozhikode