MØLBA3006 Pricing analytics and revenue optimization

    • Course code
      MØLBA3006
    • Number of credits
      7,5
    • Teaching semester
      2023 Autumn
    • Language of instruction
      English
    • Campus
      Lillehammer
    • Required prerequisite knowledge

      Prerequisites: LMØS120 Management accounting and control (Økonomisk styring og kontroll). Recommended Prerequisites: MØLBA3004 Business forecasting.

Course content
  • 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

Knowledge

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
Skills

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).
General competence

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)
Teaching and working methods

Lectures, exercises, group work, self-study

Required coursework
  • 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.
Assessments
Form of assessmentGrading scaleGroupingDuration of assessmentSupport materialsProportionComment
Written examination with invigilation
ECTS - A-F
Individual
4 Hour(s)
  • Approved calculator
Form of assessment

Four-hour individual written exam.

Reading list

Course name in Norwegian Bokmål: 
Pricing analytics and revenue optimization
Faculty
Inland School of Business and Social Sciences
Department
Department of Business Administration
Area of study
Økonomisk-administrativ utdanning
Programme of study
Master of Science in Business Administration - majoring in Business Analytics
Course level
Second degree level (500-HN)