Pricing Strategy

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Overview

4.5 Credits
ONLINE

This CPE course explores alternative strategies for one of the most important decisions made by managers: the pricing of its products or services. This course includes in-depth information on the price elasticity of demand, and factors affecting price elasticity. It examines the profit-maximization model and its limitations, as well as procedures for price optimization.

Objectives

  • Determine pricing decisions for maximizing profit.
  • Identify pricing strategies and the objectives of market skimming, premium pricing, penetration pricing, loss leaders, product bundling/optional extras and product differentiation to appeal to different market segments.

Major Topics

  • Price elasticity of demand
  • Factors affecting price elasticity
  • The profit-maximization model
  • Procedure for establishing the optimum price of a product
  • The tabular approach
  • Limitations of the profit-maximization model
  • Pricing strategies based on cost: Total cost-plus pricing
  • Marginal cost-plus pricing
  • Criticism of marginal cost-plus pricing
  • Marketing-based pricing strategies
  • The product life cycle

Designed For

Management accountants wanting to develop skills in financial performance management CGMA exam candidates
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