Pricing for Profitability

Changes in consumer behavior and technological advancements are making traditional pricing strategies less effective. Forward-thinking companies are now leveraging new analytical tools, technologies, and the latest in behavioral research to implement a value-based pricing approach.

If your organization hasn't examined its pricing strategy recently—and implemented a value-based approach—it may be surrendering not only a significant amount of profit but value, both to your company and the customers you serve.

In this program, you'll learn The Chicago Booth Approach to pricing: a customer-centric, value-based, analytical approach to making decisions. You'll gain proven frameworks and incorporate multiple disciplines such as marketing, data science & AI, behavioral science, and microeconomics to increase profitable growth. You'll emerge from the program with a path to monetizing your organization's opportunities in a way that benefits customers, ultimately promoting competitive advantage and significant growth.

By attending, you will:

• Learn how to combine data with the latest analytical tools—potentially transforming your firm's profitability and ability to compete in the marketplace
• Develop a customer-centric approach to pricing, aligning pricing with each consumer's perceived value and willingness to pay
• Gain insights into how customers make purchasing decisions by leveraging research from the field of behavioral economics
• Determine which data and methods to use to make pricing decisions
• Gain a deeper understanding of how pricing is intertwined with your business goals, customers, and market competition
• Learn how to launch new products at the right price
• Acquire the frameworks to successfully implement a pricing strategy across your organization's multiple brands or product lines

Why this program?

This unique program combines a blend of faculty expertise, case studies, in-class exercises, and networking opportunities with peers around the globe.

• The program's renowned faculty have collaborated with companies such as Lyft and ZipRecruiter, and they've routinely brought The Chicago Booth Approach to the field by running pricing experiments with top organizations that have generated significant upside. You'll learn firsthand from these results.
• Hear from a prominent guest speaker who will share how they've created customer value in a traditional and constrained industry.
• Network with other executives transforming pricing strategy for their firms, and learn collaboratively with them through case studies, a simulation, and group discussion

This program is designed for mid- to senior-level executives responsible for pricing, monetization, and revenue management decisions across diverse functional areas, including Marketing, Finance, Product Management, Sales, Revenue Operations, Business Development, Operations, Engineering, Analytics, Strategy, Data Science, and General Management.

Applicable to any industry, the program draws on case studies and examples spanning manufacturing, technology, B2B, regulated industries, two-sided marketplaces, and services, ensuring relevance to a wide range of business contexts.

Economic Value to the Consumer

• Monetizing customer value: A scientific approach to ensure that pricing decisions monetize the commercial opportunity
• A framework to measure value and incorporate value into marketing decisions

Pricing Techniques

• Elasticity analysis, experimentation, conjoint analysis 
• Strategies in times of inflation
• Pricing in a competitive market
• Developing a customer-centric mindset
• Channel pricing
• Segmented pricing: personalized pricing and product line pricing

Behavioral Economics — the psychology of customer purchasing decisions

• Creating an ideal environment for purchases: choice architecture and nudging
• Present-biased preferences in the market
• Customer attention/inattention to prices
• Loss aversion and pricing
• What makes a price 'fair'?

Customer Lifetime Value 

• CLV analysis and pricing
• Customer capture and retention
• Metered pricing, nonlinear pricing, and volume discount
• System-based pricing strategies

note: curriculum subject to change

What participants say about Pricing for Profitability: Value Creation Strategies

"I believe it is part of our nature to constantly strive to learn and absorb anything and everything we can. Personally, I find it fulfilling to study new topics that I might not be as familiar with and move forward in my career. Studying value creation and pricing decisions were essential for me to contribute to my organization’s profitability and sustainability." 

—Bridget Brizek, Director, Alverno Laboratories

“The program is excellent for anyone who wishes to gain a better insight into why companies make strategic decisions from a financial analysis point of view. I learned not only the how but also the why behind key financial decisions.”

—Dr. Douglas Hutchens, VP, Global Development and Chief Veterinary Officer, Bayer Animal Health, Bayer HealthCare

“The Chicago Booth faculty provided a highly engaging and thoughtful program. I am leaving the program with both technical and behavioral strategies that I’m excited to share with my organization.”

—Lara Schneider, Senior Marketing Manager, Toshiba Corporation

“I was able to rethink how pricing can be set with the strengths and weaknesses of my product.”

—GC Chew, Head of Business Development and Operations, Conduit

“I now see pricing in a much higher perspective as an efficient way to optimize my company’s pricing strategy.”

—Ken Lin, CEO & Co-Founder, Abies Asset Management Consulting Co., Ltd.

“I enjoyed learning something new. I.e., Economic value to the customer, while simultaneously revisiting microeconomics, which I hadn’t consciously thought of in decades, but now I am with a new perspective.”

—Jeff Draper, Vice President, Isco Industries, Inc.

“I gained a conceptual understanding of how to focus on customer value and competitor reference prices to understand product differentiation first. Then, I could analyze demand at different price points to understand elasticity.”

—Justin Makinson, Senior Director, Financial Planning & Analysis, Cox Automotive, Inc.

“Chicago Booth’s rigorous, economic-driven approach deepened my understanding of my firm’s value proposition and its strategic implications.”

—Daniel Häusermann, Partner, Homburger AG