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Syllabus MKT 536 Pricing 1 MARSHALL SCHOOL OF BUSINESS MKT 536 PRICING FALL 2018 Instructor: Professor Shantanu Dutta Office: HOH 602 Fax: (213) 740 7828 Email: [email protected] Class Time: Monday: 6:30 9:30 P.M. Office Hours: By appointment Web Site: Please check Blackboard’s course page COURSE DESCRIPTION AND OBJECTIVES The course will cover key pricing concepts and pricing strategies. Upon successful completion of this course, students will be able to: 1. Explain the concepts, theory and latest thinking on key pricing issues, learned through lectures, cases, class discussion, assigned readings and guest speakers. 2. Apply concepts and theory to find the solution to pricing problems in marketing settings, individually and in teams, using extensive case analyses. 3. Use data and make the data driven business decisions, such as pricing, that are extremely important and valued by companies, in hands on class assignments. 4. Make an independent assessment of the pricing strategy or tactics used by a company or industry of their own choosing through a team project that is due end of the semester. 5. Write reports for senior management that focus on managerial insights from data analysis. 6. Make professional quality oral reports on data driven decision making. Course Materials 1. Course Reader: MKT 536 Cases and Readings. COURSE ORGANIZATION AND FORMAT Study Groups Students will need to form study groups early in the semester, this is intended for handing in group assignments and the course project. Groups should be of four or five members. Study Group composition is due on September 10. Class Format Lecture/Discussions: These sessions are devoted to the presentation and discussion of theories, concepts, analytical techniques, and empirical findings useful for pricing strategy and tactics.

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Page 1: Syllabus MKT 536 - University of Southern California · MKT 536 – Pricing 1 MARSHALL SCHOOL OF BUSINESS MKT 536 – PRICING FALL 2018 Instructor: Professor Shantanu Dutta Office:

Syllabus

MKT 536 – Pricing 1

MARSHALL SCHOOL OF BUSINESS

MKT 536 – PRICING

FALL 2018

Instructor: Professor Shantanu Dutta

Office: HOH 602

Fax: (213) 740 7828

Email: [email protected]

Class Time: Monday: 6:30 – 9:30 P.M.

Office Hours: By appointment

Web Site: Please check Blackboard’s course page

COURSE DESCRIPTION AND OBJECTIVES

The course will cover key pricing concepts and pricing strategies.

Upon successful completion of this course, students will be able to:

1. Explain the concepts, theory and latest thinking on key pricing issues, learned through lectures,

cases, class discussion, assigned readings and guest speakers.

2. Apply concepts and theory to find the solution to pricing problems in marketing settings,

individually and in teams, using extensive case analyses.

3. Use data and make the data driven business decisions, such as pricing, that are extremely important

and valued by companies, in hands on class assignments.

4. Make an independent assessment of the pricing strategy or tactics used by a company or industry of

their own choosing through a team project that is due end of the semester.

5. Write reports for senior management that focus on managerial insights from data analysis.

6. Make professional quality oral reports on data driven decision making.

Course Materials

1. Course Reader: MKT 536 Cases and Readings.

COURSE ORGANIZATION AND FORMAT

Study Groups

Students will need to form study groups early in the semester, this is intended for handing in group

assignments and the course project. Groups should be of four or five members. Study Group

composition is due on September 10.

Class Format

Lecture/Discussions: These sessions are devoted to the presentation and discussion of theories,

concepts, analytical techniques, and empirical findings useful for pricing strategy and tactics.

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The lecture/discussion sessions are often accompanied by assigned readings from the course packet.

Lectures are not designed to summarize the readings, although important concepts will be consolidated

and extended. The readings are considered an integral part of the course and students will be held

responsible for their content during discussion and in their case analyses.

Case Discussions. The assigned case studies have been selected to fit the objectives of the course and to

cover a cross section of interesting industries.

All students are expected to come to class ready to discuss each case, regardless of whether or not a

written assignment has been prepared. Students may be called upon at any time (a.k.a. cold called) to

provide specific recommendations and analysis. At a minimum, you should be able to (i) state clearly

what management should do and (ii) provide a specific, logically consistent rationale for your

recommendations, backed by your analysis. Even if you do not contribute to a specific case discussion

by speaking, make sure that you are comfortable with what you would have done in the management

situation described in the case and why.

BASIS FOR GRADING

I believe in allowing many evaluation moments during the semester of different types. Though the

course might become very intensive and demanding, the high number and diversity of evaluation tools

also reduces the impact of any one assignment on the final grade (which in turn reduces the risk for

students). Each student's overall course grade will be based upon the following:

Individual In-Class Exam 30%

Group Course Project 25%

Individual Assignment 5%

Four Group Assignments 30%

Class Participation 10%

The overall grade is 45% individual performance (in-class exam, class participation, individual

assignment) and 55% group performance (four group assignments and one group project). Final grades

are curved following school regulations.

Individual Exam: October 22rd

Group Course Presentation: November 26th and Dec 10th

Group Course Report: Due December 10th

Individual Assignment: Due August 27th

Four Group Assignments: Due (Sept 17th, Oct 1st , Oct 8th, Nov 5th)

Exam

There will be one in-class individual exam (October 22nd. The exam will cover lectures, case

discussions, and readings. There will be a review session before the exam.

Course Group Project

The project is intended for your group to study a pricing topic that is of interest to you. For instance,

groups may elect to pursue an in-depth study of a firm’s pricing strategy applying the concepts and

framework covered in class. Groups may also study a specific pricing practice (e.g., dynamic pricing,

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MKT 536 – Pricing 3

pricing software as service, price promotions, quantity discounts, dynamic pricing, etc.) within a firm or

across firms or industries. Data analysis is encouraged but not a requirement.

Groups will be required to submit a written report (not to exceed 3000 words) at the conclusion of the

semester. The teams will also present their analysis to the class. Please submit the names of your team

members, topic and a two-page progress report providing a brief outline of the project and its status due

on October 29th. A hard copy of the presentation slides is due before the project presentation at the

beginning of class on November 26th.

When writing the group project report and preparing for the presentation, try to address the following

questions.

Who is the target customer for the company? What is the value that the company offers to this target

customer(s)? What is their pricing strategy? Is it a value pricing strategy?

Is their pricing strategy consistent with their other marketing and strategy initiatives? In other

words, is there consistency between their value creation and value extraction strategies.

Can the company deliver better value to this target customer than competition? Does the company

have the resources and capability to create and deliver a value pricing strategy to extract value that

is consistent with their value creation strategy?

Would you recommend any change in their pricing strategy? Why or why not?

Is the company communicating the pricing value to its target customers as well as they could?

It is intended that each student will receive the group grade for the group assignment. Therefore, it is

important to divide the work equitably. The grade will be based on the quality of the logic provided to

justify the pricing recommendation/ pricing strategy, the creativity and quality of the presentation, and

how the group handles questions.

Written Assignments: Case Analyses and Exercises

Students must also turn in one individual assignment. This assignment will be part of case analysis.

In addition to the individual assignment, there will be a group project and there will be four written

group assignments.

One of the group assignment is a case analysis. The remaining three involve data analysis: one of them

is analysis of a company data to estimate price elasticity, the second is analyzing Google data to

recommend bidding for google Adwords and the third is assessing demand and pricing of Samsung

tablet using data from Amazon. Please do not wait to start on the data assignments the day before – you

will not be able to complete it on time! I will provide further details in class on the nature of these

group assignments.

Hard copy versions of all assignments are due at the beginning of class on the day that either the case is

discussed or the assignment is due.

Class Participation

Grading class participation is necessarily subjective. Some of my criteria for evaluating effective class

participation include:

1. Is the participant prepared? Do comments show evidence of analysis of the case? Do comments

add to our understanding of the situation? Does the participant go beyond simple repetition of case

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facts, adding analysis and conclusions? Do comments show an understanding of theories, concepts,

and analytical tools presented in class lectures or reading materials?

2. Is the participant a good listener? Are the points made relevant to the discussion? Are they linked

to the comments of others? Is the participant willing to interact with other class members?

3. Is the participant an effective communicator? Are concepts presented in a concise and convincing

fashion?

Your grade for class participation is not a direct function of the amount of "air time" you take up. In

general, I will evaluate you on how well you respond to my questions and on how effectively you take

into account the comments and analyses of your classmates. In situations where multiple students have

raised their hands to speak, I will try to call on the student with the least cumulative air time to that date.

This procedure, carried out over the course of the semester, should help to ensure that everyone who is

well prepared and wants to contribute will have the opportunity to do so.

Absences from class may result in a failing grade for class participation. Attendance will be

mandatory for all days of project presentation and questions/comments during presentations are

highly valued.

Support Systems

Academic Conduct:

Plagiarism – presenting someone else’s ideas as your own, either verbatim or recast in your own words

– is a serious academic offense with serious consequences. Please familiarize yourself with the

discussion of plagiarism in SCampus in Part B, Section 11, “Behavior Violating University Standards”

https://policy.usc.edu/scampus-part-b/. Other forms of academic dishonesty are equally unacceptable.

See additional information in SCampus and university policies on scientific misconduct,

http://policy.usc.edu/scientific-misconduct.

Support Systems:

Students whose primary language is not English should check with the American Language Institute

http://dornsife.usc.edu/ali, which sponsors courses and workshops specifically for international graduate

students.

Student Counseling Services (SCS) - (213) 740-7711 – 24/7 on call

Free and confidential mental health treatment for students, including short-term psychotherapy, group

counseling, stress fitness workshops, and crisis intervention. https://engemannshc.usc.edu/counseling/

National Suicide Prevention Lifeline - 1-800-273-8255

Provides free and confidential emotional support to people in suicidal crisis or emotional distress 24

hours a day, 7 days a week. http://www.suicidepreventionlifeline.org

Relationship & Sexual Violence Prevention Services (RSVP) - (213) 740-4900 - 24/7 on call

Free and confidential therapy services, workshops, and training for situations related to gender-based

harm. https://engemannshc.usc.edu/rsvp/

Sexual Assault Resource Center

For more information about how to get help or help a survivor, rights, reporting options, and additional

resources, visit the website: http://sarc.usc.edu/

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Office of Equity and Diversity (OED)/Title IX compliance – (213) 740-5086

Works with faculty, staff, visitors, applicants, and students around issues of protected class.

https://equity.usc.edu/

Bias Assessment Response and Support

Incidents of bias, hate crimes and microaggressions need to be reported allowing for appropriate

investigation and response. https://studentaffairs.usc.edu/bias-assessment-response-support/

Student Support & Advocacy – (213) 821-4710

Assists students and families in resolving complex issues adversely affecting their success as a student

EX: personal, financial, and academic. https://studentaffairs.usc.edu/ssa/

Diversity at USC

Tabs for Events, Programs and Training, Task Force (including representatives for each school),

Chronology, Participate, Resources for Students. https://diversity.usc.edu/

USC Emergency Information

Provides safety and other updates, including ways in which instruction will be continued if an officially

declared emergency makes travel to campus infeasible. emergency.usc.edu

USC Department of Public Safety – UPC: (213) 740-4321 – HSC: (323) 442-1000 – 24-hour emergency

or to report a crime. Provides overall safety to USC community. dps.usc.edu

Students with Disabilities:

USC is committed to making reasonable accommodations to assist individuals with disabilities in

reaching their academic potential. If you have a disability which may impact your performance,

attendance, or grades in this course and require accommodations, you must first register with the Office

of Disability Services and Programs (www.usc.edu/disability). DSP provides certification for students

with disabilities and helps arrange the relevant accommodations. Any student requesting academic

accommodations based on a disability is required to register with Disability Services and Programs

(DSP) each semester. A letter of verification for approved accommodations can be obtained from DSP.

Please be sure the letter is delivered to me as early in the semester as possible. DSP is located in GFS

(Grace Ford Salvatori Hall) 120 and is open 8:30 a.m.–5:00 p.m., Monday through Friday. The phone

number for DSP is (213) 740-0776. Email: [email protected].

No recording and copyright notice: It is a violation of USC’s Academic Integrity Policies to share

course materials with others without permission from the instructor. No student may record any

lecture, class discussion or meeting with me without my prior express written permission. The word

“record” or the act of recording includes, but is not limited to, any and all means by which sound or

visual images can be stored, duplicated or retransmitted whether by an electro-mechanical, analog,

digital, wire, electronic or other device or any other means of signal encoding. I reserve all rights,

including copyright, to my lectures, course syllabi and related materials, including summaries,

PowerPoints, prior exams, answer keys, and all supplementary course materials available to the students

enrolled in my class whether posted on Blackboard or otherwise. They may not be reproduced,

distributed, copied, or disseminated in any media or in any form, including but not limited to all course

note-sharing websites. Exceptions are made for students who have made prior arrangements with DSP

and me.

SPECIAL NOTES

1. Students are required to check the course Web page on Blackboard.

2. The only email I will be using is: [email protected].

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COMPLETE CLASS SCHEDULE AND ASSIGNMENTS

Week 1-August 20th

TOPIC: Course Introduction

TOPIC: Key Principles in Pricing: Price Strategy Framework & Value Analysis

LECTURE & DISCUSSION:

A brief introductory lecture will provide a course overview and coverage of administrative matters. We

will then begin our discussion of pricing strategy with the key principles. We will also discuss pricing at

value. We will also introduce the customer value-in-use (also known as economic value to the customer

or EVC) as a means to guide pricing strategy, particularly for new industrial products.

Please also go online and check on Uber’s business strategy. In particular, how are they competing in

the digital market. Please also see any article on their paywall pricing strategy and other ways they are

generating revenue.

In class exercise: We will discuss how Uber is creating value and extracting value through pricing. This

example will high light the business model disruption that many businesses are facing and how they are

extracting value through pricing strategies.

When looking online about Uber, please look for possible answers to the following questions.

Who is the target customer for Uber?

What is the value that Uber offers to their target customer(s)?

What is the competition that Uber faces in the US market? Can Uber deliver better

value to this target customer than competition? Why or why not?

What is surge pricing? Are there pros and cons to this strategy?

Who are the collaborators for Uber?

What are the challenges that Uber faces in its business model?

What are the global opportunities and challenges for Uber?

READINGS:

1. Principles of Pricing: Dolan and Gourville: HBS: 9-506-021

2. Uber. Please look online to seek answers to the questions above.

WEEK 2 –August 27th

TOPIC: Estimating Price elasticity

We will discuss quantitative methods for assessing price response and estimating elasticities. We will

turn our attention on how to determine price elasticities from historical data on actual sales. We will

discuss how to use regression analysis and illustrate the approach with data for consumer products. Our

discussion will touch on the growing use of individual-level transaction data and how to estimate price

elasticity with this type of historical information. Both own and cross price elasticity. This discussion

will form the basis for the class group assignment 1 which is due September 25th. The data for the first

group assignment will be posted on Blackboard.

Install JMP on your laptops. The three group assignments that will require analysis of company data,

require use of this software. Download details will be provided on Blackboard.

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TOPIC: Medicines Company Case

ASSIGNMENT: Individual Assignment 1, is based on the Medicines case, it is due at the beginning of

class. Provide answers to the case questions below.

CASE DISCUSSION: The Medicines Company

Please read the “The Medicines Company” case and answer the questions below. This individual

assignment is due at the beginning of the second class. Please state clearly your computations and your

assumptions and keep a copy to refer to during our discussion. Please answer the following questions.

Your answer should not exceed 3 pages plus one page of Exhibit.

1. What is the economic value or value-in-use of Angiomax to a hospital? Be specific in your

analysis and assumptions. Are they different across different customer segments?

2. Evaluate hospitals’ likely “willingness to pay.” If it is different from the value-in-use analysis

above, then provide a rationale for their “willingness to pay”.

3. What price would you recommend the company charge for Angiomax at launch? What is the

logic for the price recommendation?

Please post your assignment on blackboard. If you are having a problem, then please email them to me.

READINGS:

1. The Medicines Company Case

2. Principles of Pricing: Dolan and Gourville: HBS: 9-506-021

3. Please look at Price elasticity videos in blackboard

4. Please look at statistics resources videos to give you an idea of regression analysis

WEEK 3-September 10

TOPIC: Guest Speaker from A.C. Nielson: Pricing Case Studies

Develop Pricing Capability: South West Airlines

CASE: We will use the Southwest Airlines case to build insights on how companies can develop a

competitive advantage to compete on price. How Southwest developed its value creation and value

capturing capabilities.

CASE DISCUSSION: Southwest Airlines

o Who is the target customer for Southwest? What is the value that Southwest offers to

their target customer(s)?

o What are the capabilities of Southwest airlines that enable them to compete on price?

o Can Southwest deliver better value to this target customer than competition? Why or

why not?

READING:

1. Case: Southwest Airlines

2. Dutta, et al.: Pricing as a Capability; MIT Sloan Reprint 433

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3. Marn, Michael and Robert L. Rosiello, “Managing Price, Gaining Profit,” Harvard Business

Review, Reprint 92507.

WEEK 4-September 17

TOPIC: Pricing Strategies in Online Settings

Pricing of Online Ads by Businesses: Improving Returns from Search Engine Marketing Using Google

AdWords

We will discuss online pricing strategies by companies. We will also discuss how companies

can improve their returns from sponsored search by using data provided by Google. The material is

based on the note posted on Blackboard. This discussion will form the basis for the class group

assignment 2 which is due October 1st. This will also provide the background for the JMP class on

September 24th that will be led by Professor Ansari. The data on sponsored Ad will be posted on

Blackboard.

READINGS:

1. Case: Improving Returns from Search Engine Marketing Using Google AdWords (Arif Ansari, Shantanu Dutta

and Shijie Lu)

2. The Personalized and the Personal: Socially Responsible Innovation Through Big Data, James Guszcza, David

Schweidel and Shantanu Dutta, (Deloitte Review 2014).

3. Versioning: The Smart Way to Sell Information Carl Shapiro and Hal R. Varian (HBR 4789; 1998)

4. Should You Test Prices Online? July 23rd, 2012 by Linda Bustos

5. How Online Shopping Makes Us Suckers, Atlantic May 2017—each team provides an example of their

experience.

[ASSIGNMENT: Group Assignment One Due: Estimating Price Elasticity]

WEEK 5-September 24 (Professor Arif Ansari JMP)

TOPIC: Google Adwords Case

LECTURE AND DISCUSSION: In this session Professor Ansari will cover the Google Adwords

assignment using Excel and software package JMP to discuss different models that will be required for

the group marketing assignment.

He will also cover the analysis needed for the Google Adwords group assignment. The data for the

assignments will be posted on blackboard.

READING:

6. Case: Improving Returns from Search Engine Marketing Using Google AdWords (Arif Ansari, Shantanu Dutta

and Shijie Lu)

WEEK 6-October 1

TOPIC: Psychology and Price Perception: We will discuss how consumer perceptions of price are

formed. How consumer perceptions of price fairness are formed.

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LECTURE AND DISCUSSION: Cost, Break-even analysis and Pricing: The topics will include: (1)

cost-plus pricing and (2) iso-profit analysis and the elasticity-markup relation.

READINGS:

1. Note on Behavioral Pricing John Gourville (HBS: 9-599-114)

2. Dutta, et al.: Pricing as a Capability; MIT Sloan Reprint 433

3. Case Pricing The Epi-pen: This is Going to Sting; Steenburgh; UV 7186

4. Note Cost and Pricing

5. Note Break even and pricing

6. Marn, Michael and Robert L. Rosiello, “Managing Price, Gaining Profit,” Harvard Business

Review, Reprint 92507.

ASSIGNMENT: Group assignment 2 due. Google Adwords.

WEEK 7 October 8

LECTURE AND DISCUSSION: Cost, Break-even analysis and Pricing: The topics will include: (1)

cost-plus pricing and (2) iso-profit analysis and the elasticity-markup relation.

Please answer the Altius Golf case questions below for the group assignment.

TOPIC: Break even analysis

Altius Case discussion will highlight: Managing Price Competition

LECTURE & DISCUSSION: In this session we will discuss managing price competition using the

Altius case. We will also discuss current issues related to pricing on the Internet.

CASE DISCUSSION: Altius Golf

Altius Golf was the clear market leader in the golf ball market, its share of units sold had declined from

nearly 40% to 35%. Furthermore, the overall gold industry had been experiencing a long-term decline of

interest in the sport and had not yet fully recovered from the drop in sales after the financial crisis. The

U.S. Golf Association (USGA) and some equipment manufacturers believed that ensuring a strong

future for golf required making the sport more affordable and accessible. Altius’s own research

suggested that its market leadership was based on a “loyalist” customer segment-serious golfers who

accepted a high price point-that was unlikely to grow. Altius believed that the Elevate line would be an

entry-point brand to attract new or less serious golfers and would help it regain lost share in the “off-

course” retail channel.

Please answer the following questions. Your answer should not exceed 3 pages plus 2 pages of Exhibit.

Case Assignment Questions:

1. Why has Altius Golf lost market share? What will happen if Altius maintains the status quo?

2. What should Altius’s objectives be? What trade-offs must it manage?

3. Analyze the economics of Altius’s overall golf ball business compared to its competitors and for

the three proposed Altius product lines. What are the implications of this for the advisability of

introducing Elevate?

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A. What is Altius’s and its competitors’ 2012 revenue and gross profit?

B. What is the value of a point of market share for Altius?

C. What are the implications for Elevate, considering its unit contribution and gross margins

compared to Victor TX and Victor?

4. Should Altius implement the Elevate strategy?

A. If so, what are the risks to the brand and how can they be managed? What sales result would

you expect for each item in the line if Elevate is introduced?

B. If not, what are the alternatives, assuming the board expects growth in the profit contribution

from the golf ball line? How would these restore Altius’s market and financial position, and what are

their advantages and disadvantages?

READINGS:

1. Altius Golf Case

2. Dutta, et al.: Pricing as a Capability; MIT Sloan Reprint 433

3. Marn, Michael and Robert L. Rosiello, “Managing Price, Gaining Profit,” Harvard

Business Review, Reprint 92507.

4. How to Fight A Price War (HBR R00208) March-April 2000. Akshay R. Rao, Mark E.

Bergen and Scott Davis

5. Is Your Fighter Brand Strong Enough to Win the Battle? : Five Steps to Ensure Success --

and Five More to Avoid Failure by Mark Ritson

6. Note Cost and Pricing

7. Note Break even and pricing

ASSIGNMENT: Group assignment 3 due. Altius Case

WEEK 8-October 15

[Guest Speaker: Georg Muller Principal Deloitte Consulting]

TOPIC: Pricing Strategies

Review of the Exam

LECTURE/DISCUSSION: The Guest speaker will provide pricing strategy examples to highlight the

pricing framework.

This session will also review concepts and topics covered in preparation for the exam.

WEEK 9-October 22 (In Class Exam)

In Class Individual Exam

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TOPIC: The second half of the class. An overview of the group assignment four: Analyzing Demand

and Pricing for Samsung Tablet. Will go over the JMP code for the assignment.

WEEK 10- October 29

ASSIGNMENT: Each Team will discuss their idea for the group project that is due end of the semester.

A two-page summary of the project is due before the class.

LECTURE & DISCUSSION: This session will discuss key concepts in price negotiation. We will also

discuss the framework for analyzing the Group 4 assignment: Understanding Demand and Pricing For

Samsung Tablet from Amazon data. Will also discuss Amazon business model.

READING:

1. Horacio Falcao: Chapter 12: Value Claiming Textbook: Value Negotiation How to Finally Get The

Win-win Right” Publisher: Pearson

WEEK 11- November 5

ASSIGNMENT: Group Assignment 4 due.

TOPIC: Pricing of Services: Business Models

LECTURE and DISCUSSION:

TOPIC: Amazon Digital Distribution And Pricing To Businesses: Amazon Video

In class team presentation on business models for Music streaming.

In this session we will discuss the marketing strategy that Amazon is following and how it impacts

businesses that depend on the Amazon platform to reach customers. We will also discuss other service

business models.

READING:

1. Pricing of Software As A Service

2. Examples of Revenue Model for Services

3. Business Revenue Model of WeChat

WEEK 12-November 12

TOPIC: Pricing challenges across different markets that companies face as they introduce products in

different countries including emerging markets.

The Kraft case will highlight the challenges of multinational companies when they enter other markets.

When multinational companies enter emerging markets, they often fail to adapt to the market so that

customers perceive benefits from the product or service. We will use Kraft’s entry into China with Oreo

biscuit’s to highlight the key marketing strategy issues. Oreo’s initial entry into China was not a success

till they changed their marketing strategy.

READINGS:

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1. Case: The Oreo in China Time to Get It Right or Get To Out SMU-12-0020

2. The Battle for China’s Good Enough Market HBR RO709E

3. Kraft Changed its Biscuits for China (Financial Times June 2013)

4. Look at articles about Uber’s global marketing and pricing strategy

Case Preparation Questions for Class Discussion:

1. What are the key reasons for the lack of success of Oreo in China?

2. Is there a large market opportunity for Oreo in China? Is it worthwhile to pursue it?

3. What should Warren do?

4. Develop a plan to revive Oreo in China.

WEEK 13 –November 19

TOPIC: Pricing of Services and Products with Social Mission

READINGS:

1. Case: HBS Case: Better World Books (9-511-057)

When reading and preparing the case please address the following questions.

1. What is Better World Books’ value proposition? How compelling is it? How valuable is Better

World Books’ social mission to its customers – both donors and buyers? How do you know?

2. Why isn’t Better World Books realizing a price premium for its social mission? What should

they do to achieve this goal? Are they communicating their value to their target customers? If

not how do you think they can better communicate their value?

3. How does Amazon’s pricing impact Better World Books’ pricing strategy? How does Better

World Books’ choice of distribution channels impact its pricing strategy?

4. Which market segment(s) should Better World Books target as customers for purchasing its

books? Which segment(s) should Better World Books target as donors for its book inventory?

How does the price sensitivity of the market segment vary?

5. How can Better World Books better “complete the full circle” with its constituents?

6. What should the relative role of new and used books be in Better World Books’ business

strategy?

7. Should Better World Books adjust its model for providing funds to its non-profit partners? What

are the ramifications of such changes?

8. How does Better World Books’ “not just for profit” mission and business model both enable

and constrain its potential? Looking ahead to the future, should Better World Books retain its

status as a for-profit social venture?

Summary and Overview

WEEK 14- November 26

TOPIC: Project presentation & Summary and Overview

*Attendance will be mandatory for the Project presentation day.

Page 13: Syllabus MKT 536 - University of Southern California · MKT 536 – Pricing 1 MARSHALL SCHOOL OF BUSINESS MKT 536 – PRICING FALL 2018 Instructor: Professor Shantanu Dutta Office:

Syllabus

MKT 536 – Pricing 13

EXAM WEEK 15- December 10

TOPIC: Project presentation

ASSIGNMENT: Group Project report due at the beginning of class.

*Attendance will be mandatory for the Project presentation day.