“If you ever wondered how prices are determined, you will find it in Smart Pricing. This is the most comprehensive coverage on the topic for today’s new economy. The insights in this book are priceless.”
David J. Reibstein, The William S. Woodside Professor and Professor of Marketing, The Wharton School, University of Pennsylvania, and coauthor of Marketing Metrics
“Global competition and digital technology have made pricing decisions more challenging than ever before. In this smart and excellent book, Jagmohan Raju and John Zhang have packed many years of experience and expertise to help managers navigate through the complex environment that they face today.”
Sunil Gupta, Edward W. Carter Professor of Business and Head of the Marketing Department, Harvard Business School
“Smart Pricing offers a unique perspective on how pricing innovations can grow business and transform markets. Synthesizing best pricing practices from various businesses worldwide and research insights is quite illuminating. This superb book is a must-read for anyone interested in exploring the power of pricing.”
Kamel Jedidi, John A. Howard Professor of Business, Columbia University
“A must-read for all managers who have to make profitable pricing decisions in an increasingly international market environment. Raju and Zhang provide highly innovative solutions for the most challenging problems in modern pricing–scientifically founded, management-focused, and fun to read.”
Dr. Harley Krohmer, Chairman of the Institute of Marketing and Management, University of Bern - The Capital University of Switzerland
Innovative Pricing Strategies that Improve Profitability, Attract New Customers, and Transform Industries
In Smart Pricing, Wharton professors and renowned pricing experts Jagmohan Raju and Z. John Zhang draw on examples from high tech to low tech, from consumer markets to business markets, and from U.S. to abroad, to tell the stories of how innovative pricing strategies can help companies create and capture value as well as customers. They teach the pricing principles behind those innovative ideas and practices.
Smart Pricing introduces to marketing and product executives, along with corporate strategists, many innovative approaches to pricing, as well as the research and insights that went into their creation. Filled with illustrative examples from the business world, readers will discover restaurants where customers set the price...learn how Google and other high-tech firms have used pricing to remake whole industries...and understand how executives in China successfully start and fight price wars to conquer new markets.
Smart Pricing goes well beyond familiar approaches like cost-plus, buyer-based pricing, or competition-based pricing, and puts a wide variety of pricing mechanisms at your disposal. This book helps you understand them, choose them, and use them to win.
“Name your own price”: not just for Priceline anymore
New ways to match the right offer with the right customer at the right moment
The new art of the price war
How to plan and execute a price war to conquer new sales territories
Are the best things in life really free?
What you can give away, what you can’t, and how to defend against “free”
The snob premium: from cachet to cash
The more you pay, the more it’s worth
Table of Contents
About the Authors xi
Introduction Fingerprints of the Invisible Hand 1
Chapter 1 "Pay As You Wish” Pricing 19
Chapter 2 Why the Best Things in Life Are Free 41
Chapter 3 The Art of Price Wars 59
Chapter 4 Thinking Small 79
Chapter 5 The Automatic Markdown 101
Chapter 6 Name Your Own Price 119
Chapter 7 Subscribe and Save: Pricing for Marketing Profitability 139
Chapter 8 The Snob Premium 161
Chapter 9 Pay if it Works 181
Chapter 10 Conclusion 201