Module Learning Objectives
1) Distinguish between pricing strategies of commonly owned substitute and complementary products
2) Use capacity and demand forecasting to increase revenue.
3) Manage consumer purchasing behavior using promotional and psychological pricing strategies
4) Identify how and under what conditions a monopolist can directly and/or indirectly price discriminate between its consumers.
To be successful in responding to the discussion questions and response of your peers, you need to apply the module information to your postings as appropriate.
Discussion Question 1: Evaluate a pricing decision of a company that coincided with promotional or psychological pricing. Was price set optimally? If not, why not? How would you adjust the price?
Discussion Question 2: Explain how the price discrimination practice works (direct or indirect). Use examples of each with a company of your choice.
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Grading Rubric
Your assignment will be graded according the following rubric:
First and foremost how you have applied the course material to your discussion. In particular, your response should not be a generic business case analysis, rather it must draw the pertinent information and theory from the course material. (25%)
Overall quality, thoughtfulness, and rigor of your responses. Your writing should reflects your level of understanding the course material and the excellence that is expected from a graduate level course students. (25%)
Accuracy and organization of your writing in addition to spelling, grammar, sentence structure, punctuation, etc. (25%)
The appropriate length of your response. Your response should not exceed one page per discussion question. (25%)
Please thoroughly navigate your book to appropriately identify the most relevant content that could be applied to your response.
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Resources:
Textbook: Froeb, Luke M., Brian T. McCann, Mikhael Shor, and Michael R. Ward, Managerial Economics: A Problem Solving Approach, 5th Edition, 2018. Cengage Learning.
