Readings

Amazon logo When you click the Amazon logo to the left of any citation and purchase the book (or other media) from Amazon.com, MIT OpenCourseWare will receive up to 10% of this purchase and any other purchases you make during that visit. This will not increase the cost of your purchase. Links provided are to the US Amazon site, but you can also support OCW through Amazon sites in other regions. Learn more.

The required textbook for this class is:

Amazon logo Nagle, Thomas T., and John Hogan. The Strategy and Tactics of Pricing. 4th Ed. Englewood Cliffs: Prentice-Hall, 2005. ISBN: 0131856774. (Referred to below as "Nagle.")

In addition, students will be responsible for reading additional articles and cases before each class. The class will spend 5 sessions exploring specific cases in greater depth. These sessions are specified as cases rather than lectures. There is no substitute for reading the case fully before the case discussion.


Week # Topics Readings
1 Lecture: Introduction: Pricing Strategies - the Good, the Bad and the Ugly Amazon logo Luecke, Richard. "Pricing it Right: Strategies, Applications and Pitfalls." In Marketer's Toolkit: The 10 Strategies You Need to Succeed. Boston, MA: Harvard Business School Press, 2006. ISBN: 1591397626.

Skim Nagle. Chapter 1 and 2 (intro). If needed, review the break even analysis in Chapter 8/9 of Nagle.
2 Lecture: Maximizing Economic Value to the Customer

Case: Exploring EVC
Lecture: Maximizing Economic Value to the Customer

Dolan, Robert J. "Pricing a Value-Based Approach." Harvard Business School Case. Boston, MA: Harvard Business School Publishing. Case: 9-500-071. December 21, 1999.

Nagle. Chapter 3.

Case: Exploring EVC

Shapiro, Benson P., and Jeffrey J. Sherman. "Cumberland Metal Industries: Engineered Products Division-1980." Harvard Business School Case. Boston, MA: Harvard Business School Publishing. Case: 9-580-104. January 1, 1980.
3 Lecture: Measuring Demand and influencing Consumer Behavior: A Practical Approach to Pricing a New Product

Case: Pricing a Product for the First Time
Lecture: Measuring Demand and influencing Consumer Behavior: A Practical Approach to Pricing a New Product

Gourville, John T. "Note on Behavioral Pricing." Harvard Business School Case. Boston, MA: Harvard Business School Publishing. Case: 9-599-114. May 25, 1999.

Dolan, Robert J. "Conjoint Analysis: A Managerial Guide." Harvard Business School Case. Boston, MA: Harvard Business School Publishing. Case: 9-590-059. May 8, 1990.

Nagle. Chapter 13.

Nagle. Chapter 8, pp. 149-157. (Costs.)

Nagle. Chapter 4, pp. 96-101. (Reference Effects.)

Case: Pricing a Product for the First Time

McGovern, Gail. "Virgin Mobile USA: Pricing for the Very First Time." Harvard Business School Case. Boston, MA: Harvard Business School Publishing. Case: 9-504-028. September 8, 2003.
4 Lecture: How to Price to Best your Competitors?

Case: How to React to a Price Cut?

Case: When is Price-Cutting a Good Idea?
Lecture: How to Price to Best your Competitors?

Rao, Ashkay R., Mark E. Bergen, and Scott Davis. "How to Fight a Price War." Harvard Business Review , March 1, 2000.

Nagle. Chapter 10.

Case: How to React to a Price Cut?

Aquilar, Francis J. "Beauregard Textile Company." Harvard Business School Case. Boston, MA: Harvard Business School Publishing. Case: 9-191-058. October 19, 1990. (This is a 2 page case we will quickly cover the 2nd half of class.)

Case: When is Price-Cutting a Good Idea?

Silk, Alvin J., and Bruce Isaacson. "Philip Morris: Marlboro Friday (A)." Harvard Business School Case. Boston, MA: Harvard Business School Publishing. Case: 9-596-001. September 19, 1995.
5 Lecture: The Basic Theory of Segmentation

Case: Product Line Pricing
Lecture: The Basic Theory of Segmentation

Black, Jane. "Sharper Tools for Discriminatory Pricing." Business Week, July 31, 2003.

Grow, Brian. "The Great Rebate Runaround." Business Week , November 23, 2005.

Nagle. Chapter 3, pp. 45-50. (Review.)

Nagle. Chapter 4, pp. 60-78.

Nagle. Chapter 7.

Case: Product Line Pricing

Dhebar, Anirudh, and Adam Brandenburger. "American Airlines, Inc.: Revenue Management." Harvard Business School Case. Boston, MA: Harvard Business School Publishing. Case: 9-190-029. July 31, 1989.
6 Lecture: Customizing Prices in Multiple Ways

Case: Pricing in the Marketing Mix
Lecture: Customizing Prices in Multiple Ways

Dutta, Shantanu, Mark Bergen, Daniel Levy, Mark Ritson, and Mark Zbaracki. "Pricing as a Strategic Capability," Sloan Management Review Vol. 43, No. 3 (Spring 2002): 61-66. Harvard Business School Case. Boston, MA: Harvard Business School Publishing. Case: 9-SMR-080. April 1, 2002.

Case: Pricing in the Marketing Mix

Anderson, Eric T. Keurig At Home. Harvard Business School Case. Boston, MA: Harvard Business School Publishing. Case: 9-KEL-021. February 28, 2005.