What value does a product or service have for customers? At the right price, customers are willing to buy the product, but if the price is wrong, they do not buy. Price affects the impression of the brand and is important for the profitability of the business.

Customer value and price are an important topic in marketing. We who work with marketing must be able to answer questions such as: How can brands influence customers' perception of value? How can businesses work systematically to set the right prices? Where does the business have profitability leaks? Are the right products on offer? What must we take care of in the process of staying within legislation and presenting a price that customers think is fair?

Our job as marketers is to create value for our customers and be ready to pay for this value. We want to get a bargain where customers buy because they think the product or service is worth the price.

More specifically, the topic will include the following topics:

How goods and services create value for customers
Strategic pricing and profitability
Customer value, costs and competitors as a basis for pricing
What is Customer Lifetime Value (CLV)
Financial consequences of pricing.
Behavior and psychological effects of pricing
Willingness and reference price
Price and value communication
Price structure and price segmentation
Price policy, negotiations and discounts
How to set prices for the first time and how to change prices
How to measure customer reactions to changes in price - price sensitivity
Price of services with varying demand (revenue management)
Price in various distribution channels
Price competition and price war
Ethics and legislation in pricing
What characterizes companies that are skilled in pricing

Subject description KVP2100

Customer Value and Pricing Strategy

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