Price management. Strategy, analysis, solution and implementation

Book Description

The world's largest experts in the field of pricing have managed to find a middle ground between the rigor of classical theory and the wealth of practical experience. As a result, this book was born - a work covering all aspects of price management. Quantitative and qualitative pricing methods and the most innovative developments in its theory and practice are presented here. Herman Simon and Martin Fassnacht went beyond the traditional concepts of "price theory" and "pricing policy" and proposed a new term - "price management", symbolizing a holistic approach to pricing strategy and its practical implementation. The authors of the book also remind us that in ancient Rome, the same word was used to denote both price and value — pretium. This fundamental concept determines the success of price management, where the seller and the buyer act together. Simon and Fassnacht cite numerous examples from their own rich experience of research, consulting and teaching in different countries and consistently reveal to the reader the process of price management, consisting of four stages: strategy, analysis, decision-making and implementation. The authors take into account the peculiarities of various branches of economic activity, including the production of consumer goods and industrial products, services and trade. In addition, the impact on pricing of technological innovations, including the Internet, new sensor and measurement developments, which determined the emergence of such pricing models as fixed rates, freemium, "pay for use" and "pay as much as you want", is considered. Other relevant topics were also touched upon: new price metrics, big data, two-way price systems, negative prices and the sharing economy, as well as fundamentally new payment systems, such as bitcoin. Here is a real encyclopedia for leaders who realize that price is not just a means to extract short-term profits, but a tool that ensures a steady increase in the shareholder value of the company in the long term. This book should become a desktop for researchers, teachers and students of economic specialties.