This book on pricing decisions gives practical guidance on how to identify customer value, estimating customers’ willingness to pay for these benefits, and on how psychology affects customers’ perception of prices in a market. This strategic view on pricing gives the reader a competitive advantage. It empowers them with means to plan and perform a pricing strategy based on their value propositions. The target group for this book is managers, entrepreneurs, and business students. The book guides the reader in understanding how economics, strategy, marketing, and psychology are combined when it comes to pricing decisions. Further, the chapters contain step-by-step procedures that help managers and entrepreneurs to succeed with complex pricing decisions in busy workdays. The analysis is based on the basic edition of Microsoft Excel software. In sum, the book helps the reader to strategically plan, execute, and win price competitions. It covers topics such as dynamic pricing, estimation of customers willingness to pay, price competition and wars, customers’ reaction to unfair prices, and price tactics and strategy. The book includes specialized chapters on pricing in e-commerce, and pricing in the sharing economy.
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