Developing a successful pricing strategy
Marco Bertini, Assistant Professor of Marketing, talks about developing a successful pricing strategy
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In a new podcast, Marco Bertini, Assistant Professor of Marketing, discusses the importance of pricing strategy.
Marco begins the podcast by explaining that pricing strategy is often neglected by managers. "There are three reasons pricing strategy is neglected," he explains, "firstly it is hard to do, secondly managers often believe prices are set by competition and the marketplace, and are not in their hands, and finally there is a lot of pressure to justify pricing decisions."
Marco explains that a successful pricing strategy requires an understanding of both the costs of products, and of the value they generate in the marketplace.
Marco also discusses his research into price partitioning and consumer psychology, which found that when retailers, for example Amazon, partitioned prices by listing product and shipping costs separately, customers may overvalue the price of shipping and be more likely to back out of a transaction.
Listen to the podcast for more of Marco's thoughts on pricing strategy. Find out more about Marco's new two-day programme Pricing for Profit