Pricing an der ESCP Europe Berlin | Karteikarten & Zusammenfassungen

Lernmaterialien für Pricing an der ESCP Europe Berlin

Greife auf kostenlose Karteikarten, Zusammenfassungen, Übungsaufgaben und Altklausuren für deinen Pricing Kurs an der ESCP Europe Berlin zu.

TESTE DEIN WISSEN

Top 5 methods for having the willingness-to-pay conversation

(2/2)

Lösung anzeigen
TESTE DEIN WISSEN

3. Most-least questions

Start with a set of features and create a subset of these features and let them be ranked from 1 to 10 on how much the customer values it.

--> Quickest way to determine the relative priorities of features and to identify the most and least valued of them.

4. Build-your-own questions

Give customers a list of features and let them build their “ideal product.”

--> To identify the ideal packages for each customer regarding feature and price combination.

--> Applicable only if you have a rough idea on the WTP and how much they value each feature.

5. Purchase simulations

Most advanced method. You provide customers with a product that has specific features and a price and ask them if they would buy it. Then change the features and price and ask again.

--> Useful for precise estimates of the WTP for a product and its features.

Lösung ausblenden
TESTE DEIN WISSEN

What does it indicate if the coefficient of elasticity is greater than 1.0?

Lösung anzeigen
TESTE DEIN WISSEN

Elastic = quantity demand of the product changes drastically when its price increases or decreases

Lösung ausblenden
TESTE DEIN WISSEN

Cost-plus logic to pricing

Lösung anzeigen
TESTE DEIN WISSEN

Product --> Costs --> Price --> Benefit --> Customers

Lösung ausblenden
TESTE DEIN WISSEN

Top 5 methods for having the willingness-to-pay conversation

(1/2)

Lösung anzeigen
TESTE DEIN WISSEN

1. Direct WTP questions

What do you think is an acceptable price?

--> Easiest way to see if there is a WTP for the new product in early stage innovations.

--> Large scale will form a range of what the market is generally willing to pay plus you will see if you´re off track – especially if the WTP is much lower than expected.

2. Purchase probability questions

Show the product concept with its values and benefits and a price and ask about the purchase probability from 1 to 5.

--> Easiest way to see if somebody would actually buy it

Lösung ausblenden
TESTE DEIN WISSEN

Anchoring effect

Lösung anzeigen
TESTE DEIN WISSEN

- Magic in the middle

- compromise

- attraction


“Buyers look for reference points” (when they do not want to engage

in time-consuming activities, such as “looking online, reading test

reports, or asking friends”) that are immediately available


Example: “The Magic of the Middle”


Lösung ausblenden
TESTE DEIN WISSEN

The three profit drivers

Lösung anzeigen
TESTE DEIN WISSEN

Sales, price, costs

Lösung ausblenden
TESTE DEIN WISSEN

CVM price recommendation

Lösung anzeigen
TESTE DEIN WISSEN

Set the price so that the benefit ratio (the product’s overall

benefit, compared to that of its competitor) is equal to the price ratio

Recommended price: benefit ratio * competitors price

Lösung ausblenden
TESTE DEIN WISSEN

Price vs. quality [= benefit]: What matters more?

Lösung anzeigen
TESTE DEIN WISSEN

Communication of value example with Olympic Games

Lösung ausblenden
TESTE DEIN WISSEN

Smart pricing ideas (3 examples)

Lösung anzeigen
TESTE DEIN WISSEN

Gillette: Indian market must have features

LinkedIn: Money back when receiving a response for paid InMail

BahnCard: Discount with BahnCard leads people to perceive it as cheaper (50% - instead it's only 30%)

Lösung ausblenden
TESTE DEIN WISSEN

Differentiation value

Lösung anzeigen
TESTE DEIN WISSEN

monetary + psychological


Monetary: “total cost savings or income enhancements that a

customer accrues as a result of purchasing a product”

Psychological: “refers to the many ways that a product creates

innate satisfaction for the customer”

Lösung ausblenden
TESTE DEIN WISSEN

Prestige / snob effect

Lösung anzeigen
TESTE DEIN WISSEN

higher price = higher quality


Examples: Apple, Starbucks

Lösung ausblenden
TESTE DEIN WISSEN

Avoidable (not sunk) costs

Lösung anzeigen
TESTE DEIN WISSEN

- “recognize that the cost of making a sales is always the current cost resulting from the sale, not costs that occurred in the past (= replacement costs)

- Particularly critical when costs easily rise or drop (and not that relevant at stable prices)

Lösung ausblenden
  • 776 Karteikarten
  • 43 Studierende
  • 0 Lernmaterialien

Beispielhafte Karteikarten für deinen Pricing Kurs an der ESCP Europe Berlin - von Kommilitonen auf StudySmarter erstellt!

Q:

Top 5 methods for having the willingness-to-pay conversation

(2/2)

A:

3. Most-least questions

Start with a set of features and create a subset of these features and let them be ranked from 1 to 10 on how much the customer values it.

--> Quickest way to determine the relative priorities of features and to identify the most and least valued of them.

4. Build-your-own questions

Give customers a list of features and let them build their “ideal product.”

--> To identify the ideal packages for each customer regarding feature and price combination.

--> Applicable only if you have a rough idea on the WTP and how much they value each feature.

5. Purchase simulations

Most advanced method. You provide customers with a product that has specific features and a price and ask them if they would buy it. Then change the features and price and ask again.

--> Useful for precise estimates of the WTP for a product and its features.

Q:

What does it indicate if the coefficient of elasticity is greater than 1.0?

A:

Elastic = quantity demand of the product changes drastically when its price increases or decreases

Q:

Cost-plus logic to pricing

A:

Product --> Costs --> Price --> Benefit --> Customers

Q:

Top 5 methods for having the willingness-to-pay conversation

(1/2)

A:

1. Direct WTP questions

What do you think is an acceptable price?

--> Easiest way to see if there is a WTP for the new product in early stage innovations.

--> Large scale will form a range of what the market is generally willing to pay plus you will see if you´re off track – especially if the WTP is much lower than expected.

2. Purchase probability questions

Show the product concept with its values and benefits and a price and ask about the purchase probability from 1 to 5.

--> Easiest way to see if somebody would actually buy it

Q:

Anchoring effect

A:

- Magic in the middle

- compromise

- attraction


“Buyers look for reference points” (when they do not want to engage

in time-consuming activities, such as “looking online, reading test

reports, or asking friends”) that are immediately available


Example: “The Magic of the Middle”


Mehr Karteikarten anzeigen
Q:

The three profit drivers

A:

Sales, price, costs

Q:

CVM price recommendation

A:

Set the price so that the benefit ratio (the product’s overall

benefit, compared to that of its competitor) is equal to the price ratio

Recommended price: benefit ratio * competitors price

Q:

Price vs. quality [= benefit]: What matters more?

A:

Communication of value example with Olympic Games

Q:

Smart pricing ideas (3 examples)

A:

Gillette: Indian market must have features

LinkedIn: Money back when receiving a response for paid InMail

BahnCard: Discount with BahnCard leads people to perceive it as cheaper (50% - instead it's only 30%)

Q:

Differentiation value

A:

monetary + psychological


Monetary: “total cost savings or income enhancements that a

customer accrues as a result of purchasing a product”

Psychological: “refers to the many ways that a product creates

innate satisfaction for the customer”

Q:

Prestige / snob effect

A:

higher price = higher quality


Examples: Apple, Starbucks

Q:

Avoidable (not sunk) costs

A:

- “recognize that the cost of making a sales is always the current cost resulting from the sale, not costs that occurred in the past (= replacement costs)

- Particularly critical when costs easily rise or drop (and not that relevant at stable prices)

Pricing

Erstelle und finde Lernmaterialien auf StudySmarter.

Greife kostenlos auf tausende geteilte Karteikarten, Zusammenfassungen, Altklausuren und mehr zu.

Jetzt loslegen

Das sind die beliebtesten Pricing Kurse im gesamten StudySmarter Universum

Spring

Universidade Estácio de Sá

Zum Kurs
PRINT

IUBH Internationale Hochschule

Zum Kurs
Print

Hochschule der Medien Stuttgart

Zum Kurs
Processing

LMU München

Zum Kurs
Asset Pricing Theory

Universität Marburg

Zum Kurs

Die all-in-one Lernapp für Studierende

Greife auf Millionen geteilter Lernmaterialien der StudySmarter Community zu
Kostenlos anmelden Pricing
Erstelle Karteikarten und Zusammenfassungen mit den StudySmarter Tools
Kostenlos loslegen Pricing