MØLBA3006 Pricing analytics and revenue optimization
- Number of credits7,5
- Teaching semester2023 Autumn
- Language of instructionEnglish
- CampusLillehammer
- Required prerequisite knowledge
Prerequisites: LMØS120 Management accounting and control (Økonomisk styring og kontroll). Recommended Prerequisites: MØLBA3004 Business forecasting.
- Willingness-to-pay estimation
- Price optimization
- Price differentiation
- Pricing with constrained supply
- Revenue management
- Markdown management
- Pricing analytics with big data and simulation
- Customized pricing
- Ethical and legal issues in pricing
Learning Outcome
The student
- Have in-depth knowledge about what opportunities various companies might have to apply pricing and revenue management (k1).
- Explain the critical differences among different types of opportunities and approaches needed to address them (k2).
- Explain and exemplify how price presentation, fairness, and ethical- and legal issues may influence pricing decisions and customer acceptance (k3).
- Have advanced knowledge about key concepts such as (k4):
- the impact of constrained capacity on pricing decisions opportunity costs
- market segmentation
The student
- Formulate decision problems within pricing analytics and revenue management for a wide range of business situations (f1).
- Estimate customers’ willingness-to-pay and companies price-response functions using various data sources (f2).
- Formulate and solve pricing- and markdown problems using optimization techniques (f3).
- Calculate optimal booking limits and protection levels for various fare classes using appropriate techniques (f4).
- Estimate the effect from various product/service characteristics on price using the hedonic pricing model and be able to interpret and discuss the results (f5).
The student
- Assess what opportunities and limitations that are present by applying pricing analytics and revenue management tools in order to improve a company’s profitability (g1)
- Be able to propose various pricing models and implement these, using the appropriate software, in private or public companies (g2)
- Attendance on at least 50% of the courses lectured teaching.
- There will be four mandatory homework sets. The first and the fourth homework sets are to be completed individually by a student. The second and the third homework sets are to be completed in groups. A student must pass at least three of the four homework sets.
| Form of assessment | Grading scale | Grouping | Duration of assessment | Support materials | Proportion | Comment |
|---|---|---|---|---|---|---|
Written examination with invigilation | ECTS - A-F | Individual | 4 Hour(s) |
|
Reading list
No reading list available for this course