Pricing strategy

Awareness of the five forces can help a company understand the structure of its industry and stake out a position that is more profitable and less vulnerable to attack.

An important task of the corporate financial manager is measurement of the company’s cost of equity capital. But estimating the cost of equity causes a lot of head scratching; often the result is subjective and therefore open to question as a reliable benchmark. This article describes a method for arriving at that figure, a method […]

In this article, authors James Anderson, professor at the Kellogg Graduate School, Northwestern University, and James Narus, associate professor at the...

Companies may want to shift a brand's position--to exploit less crowded territory, for example, or grow sales. Companies have long used perceptual mapping...

The way you set prices doesn’t just influence demand. It also guides the way buyers use your product or service—and that can have a lasting impact on customer relationships.

Why every company should consider a tiered model

HBR first published this article in November 1950 as a practical guide to the problems involved in pricing new products. Particularly in the early stages of competition, it is necessary to estimate demand, anticipate the effect of various possible combinations of prices, and choose the most suitable promotion policy. Then as the product’s market status […]

Sales departments tend to believe that marketers are out of touch with what's really going on in the marketplace. Marketing people, in turn, believe the...

Price wars are a fact of life, whether we're talking about the fast-paced world of knowledge products, the marketing of Internet appliances, or the staid,...

When a customer buys a product he or she goes through a complex process of balancing the price of the product against the perceived benefits, costs, risks, and value in use of the product. If the customer thinks this way when analyzing a purchase, say these authors, it makes great sense for marketers to set […]

To combat showrooming, retailers should try these four strategies instead.

They are prioritizing profits over R&D.

Lessons from two pioneers.

We love feeling like we're getting a deal... even when we're not actually getting one.

Three hacks based on behavioral science.

Brick and mortar stores shouldn't offer the same prices as websites.

Alegre, a leading hotel group in Central and South America, is suffering under the troubled economy, and its newest property, the flagship Palma Cay in...

The band needs to cut prices without damaging their brand.

You can’t form a pricing strategy without it.

When a company brings out a new product, it often raises the prices of its existing products--which means that you can follow suit without risking customer...