Pricing has become an increasingly important mechanism in maximizing a firm's profits. The ease with which consumers comparison-shop has inspired firms to become more active pricers. Unfortunately, if you lack a proper understanding of the impact of price on demand (and contribution), changing prices can quickly erode your firm's profits. This course describes the impact of changing prices in a competitive environment and describes several methods for measuring demand sensitivity to price changes, or price elasticity.

The course begins with a strategic look at pricing and discusses the impact of price changes, including the anticipated reaction of your competitors. You will examine these impacts through a discussion of recent price changes during economic declines as well as a welldocumented airline price war. Following this strategic discussion, you will use a set of tactical tools to evaluate the effect of a price action on demand and, ultimately, on profitability. You will have a chance to immediately practice what you've studied by participating in a pricing simulation game.

This course contains an optional module on Tableau, an interactive visualization software used for business intelligence. You can download a free copy of it to your desktop. While this is optional material, you can use Tableau skills for data analysis and presentations.

You are required to have completed the following course or have equivalent experience before taking this course:

• Price and Inventory Controls