MIT Sloan School of Management

Pricing: Using Data to Improve Pricing Performance

MIT Sloan School of Management

Business Analytics

About Programme

Why attend Pricing: Using Data to Improve Pricing Performance?

An effective pricing strategy offers your organization a key advantage over your competitors. Understanding how to implement one is a valuable tool in an increasingly interconnected business landscape with a growing number of parties wanting their share of the market.

This online program will equip you with the skills and understanding to accurately and effectively price new or existing products or services, with a focus on providing economic value to the customer. You’ll learn to adopt a data-driven approach that explores regression analysis, survey techniques, and conjoint analysis. You’ll also discover the limitations of historical data in the context of pricing.

Develop the techniques and guidelines that will enable you to execute a successful pricing strategy for a variety of products and industries to have a measurable impact on your organization.

Programme Content

Self-Paced Online

Orientation module

Welcome to your Online Campus

Module 1

Value Based Pricing: Determining Prices Based on Economic Value to the Customer

Module 2

Survey Design: Measuring Customer Perception of Product Value

Module 3

The Role of Price Elasticity in Improving Pricing

Module 4

Analyzing the Right Data to Drive Better Pricing Decisions

Module 5

Implications of Customer Segmentation and Product Differentiation for Pricing

Module 6

Creating a Pricing Strategy: Consolidating Various Pricing Techniques

Programme Objective

Upon successful completion of your course, you will earn a certificate of completion from the MIT Sloan School of Management. This course may also count toward MIT Sloan Executive Certificate requirements.

Over six weeks, you’ll develop an analytical toolkit for pricing products and services successfully. Guided by MIT Sloan faculty, you’ll delve into price elasticity and examine various survey techniques. You’ll learn to assign economic value to a product or service according to market demand, with tools for measuring customer perception and reaction to price. You’ll gain insight into consumer market segmentation and product variation to understand how and why different prices can be charged to different customers.

By the end of this course, you’ll have a robust decision-making framework for pricing a range of products and services, guiding you to think about multiple complex variables that interact in the contemporary pricing environment.

Programme Audience

Pricing is a timeless and adaptable skill that can be used to improve business performance in a wide range of industries. Whether you are introducing new products, facing price competition, or looking to improve the value provided to customers, this course will provide practical skills for any professional who plays a hands-on role within pricing strategy. CEOs and entrepreneurs, finance and sales executives, analysts, and product managers looking to grow their business and increase sales through better pricing will gain the ability to have a measurable impact on their organizations.

Programme Benefits

Self-Paced

This course is delivered in our Self-Paced Online format which enables you to participate at your own pace within weekly modules. This course runs over 6 weeks with an estimated 6-8 hours per week of study time

Certificate

Earn a certificate of course completion from the MIT Sloan School of Management

Interactive

You will learn through a variety of formats including interactive videos, practice quizzes, presentations, assignments, and discussion forums

Support

You will have access to a Success Adviser who will help you manage your time, and support you with any administrative or technical queries you might have

Testimonials

"Five stars. Recommended to me by Mark Ritson, and it filled a real gap - my team hadn't revisited pricing in a long time, largely from a lack of formal knowledge in this area, which has made premium positioning harder to defend. This programme gave me the frameworks to actually fix that. Genuinely excellent, rigorous, and directly applicable, exactly what a company needs if pricing decisions have been running on instinct rather than evidence."

Maria P

"Two months after finishing this course, I have something better than projections to share. I have results. While taking the course, I was building Priceography, a conjoint-based pricing tool for the dance studio industry. Professor Tucker's framework gave my product the structure it had been missing: EVC as the directional anchor, conjoint to map willingness to pay, segmentation to design the bundle. When the course ended, I ran the methodology on my own three studios and on six of our curriculum franchisees. April 21 was re-enrollment day at our company-owned studios. We raised one-class-per-week tuition by 16 percent, restructured the bundle, and tightened the family-facing communication. The result was that total enrollment grew 15 percent compared to the same day last year. The pricing change did not produce churn; the redesigned bundle and the clarity of the offer absorbed the lift cleanly. That is exactly what conjoint-informed pricing is supposed to do, and exactly the result the course taught me to expect when the methodology is applied with discipline. A brand-new franchise that opened in February ran the same playbook. With a sample of fifty of her own families, the owner ran the conjoint and discovered something most studio owners would never test for: families told her that her current tuition felt too cheap and signaled lower quality. She raised her core class tuition by 19 percent and her early-childhood program by 41 percent. On her re-enrollment day, 76 percent of her existing families re-enrolled at the higher prices. The customer voice was respected, the methodology was sound, and the result followed. I cannot give this course exclusive credit. The neuroscience course and the data storytelling course at Sloan did real work alongside it. Together they gave me the framework, the analytical confidence, and the communication discipline to make a pricing decision of this magnitude, and to coach a brand-new franchisee through her own. That is a return I did not expect from an online program."

Paul H

"An excellent course, whether youre new to pricing modeling or seeking greater depth. All too often in my industry, businesses shoot from the hip when it comes to pricing strategy, which not only wastes time and money, but also risks customer loyalty and satisfaction. This course equips you with effective tools, insights and practice thatll help you aim at the right pricing model, with greater data-driven precision and reliability. Highly recommended!"

Vincent C

"Amazing course, relevant content that allows students the ability to apply concepts, models and strategies into varying business models and scenarios."

Hernán gerardo J

"I really enjoyed taking the course Pricing: Using Data to Improve Pricing Performance here at MIT. In addition to providing an overview of the basics, the course covered advanced and creative ways to think about pricing strategy. I highly recommend it to anyone considering pursuing this path."

André N

"We've improved our margins thanks to the training. This training is very pragmatic and full of common sense."

silvere c

"The course is taught by Catherine, probably the best pricing expert in the world. The course logic is rigid and easy to understand and applicable. It gave me a pleasant learning journey and vital business knowledge. High recommend. No, you need it."

Gabriel J

"The course fulfilled my expectations, although I would have liked more interactive exercises"

Alejandro S

"Excellent course!"

Gustavo Alexander R

"It was such a great lecture, and I learned a lot about the price."

TAEHYHEON K

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Pricing: Using Data to Improve Pricing Performance | MIT Sloan