BUS 466 - Behavioral Pricing

Unit(s): 2

Price is the component of the marketing mix that represents revenue for the firm. The remaining Ps (product, place, and promotion) represents the costs that the firm incurs to establish value for the consumer. Unfortunately, many companies adopt simple heuristics, or “rules of thumb,” when developing pricing strategy. This course covers foundational elements of pricing strategy, as well as behavioral elements. In behavioral pricing, data on customer behavior, such as search history, click paths, and social profiles, forms a basis for pricing. Behavioral pricing thus combines classical economic rationality with subjective factors to understand how consumers decide on prices for products.

School of Management