Principles of Pricing An Analytical Approach [Hardcover]

This book provides an analytic basis for making pricing decisions.Pricing drives three of the most important elements of firm success: revenue and profits, customer behavior, and firm image. This book provides an analytic basis for making pricing decisions.Pricing drives three of the most important elements of firm success: revenue and profits, customer behavior, and firm image. This book provides an analytic basis for making pricing decisions.Pricing drives three of the most important elements of firm success: revenue and profits, customer behavior, and firm image. This book provides an introduction to the basic principles for thinking clearly about pricing. Unlike other marketing books on pricing, the authors use a more analytic approach and relate ideas to the basic principles of microeconomics. Rakesh Vohra and Lakshman Krishnamurthi also cover three areas in greater depth and provide more insight than may be gleaned from existing books: 1) the use of auctions, 2) price discrimination, and 3) pricing in a competitive environment.1. Introduction; 2. Buyer behavior; 3. Estimating price response; 4. Uniform posted price; 5. Auctions; 6. Price discrimination; 7. Pricing and competition; 8. Bringing it all together; 9. Appendix on game theory.'Pricing books are divided into two types. Economics texts cover pricing theoretically but rarely help the reader understand how to apply the concepts. Marketing pricing books explain 'how to do it' but rarely link the theoretical concepts to actual pricing decisions, often leading to incorrect pricing recommendations. The beauty of Vohra and Krishnamurthi's book is that it succinctly but accurately combines both pricing theory and practice. The reader is left with an understanding of both how to price in practice and why. This book is a must for every pricing course and every practitioner who wants to improve his or her pricing.' Robert C. Blattberg, Carnegie Mellon University'Setting the right price is crucial to business perflcu