How do leaders, managers, and proprietors go about the essential task of setting prices? What are some of the biases that drive decisions about pricing? In a new book, Carroll School of Management Associate Professor of Marketing Gerald Smith mixes the academic with the actionable for those in need of smarter pricing strategies. Getting Price Right: The Behavioral Economics of Profitable Pricing (Columbia University Press, 2021) is the first book to apply behavioral economics to managerial price setting. Smith pays attention to the soft skills of pricing (such as price framing, pricing strategy and “nudging”) as well as the hard skills (including value estimation and financial modeling). In Smith’s experience, the pairing of these skills leads to pricing that is more rational and ultimately successful—boosting not only revenue and profitability but also employee productivity and customer satisfaction. An award-winning instructor, Smith teaches strategic pricing management in BC’s MBA Program. He is the author of The Opt-Out Effect: Marketing Strategies That Empower Consumers and Win Customer-Driven Brand Loyalty and editor of Visionary Pricing: Reflections and Advances in Honor of Dan Nimer. Read more from the Carroll School.
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