Detailed Table of Contents

1. Chapter 1 Strategic Pricing
   Coordinating the Drivers of Profitability
   1. Leveraging Profit into Sustainable Growth
   2. Cost-Plus Pricing
   3. Customer-Driven Pricing
   4. Share-Driven Pricing
   5. The Role of "Optimizing" in Strategic Pricing
   6. What Is Strategic Pricing?
   7. Value Creation
   8. Value Communication
   9. Price Structure
   10. Pricing Policy
   11. Price Setting
   12. Price Competition
   13. Creating a Strategic Pricing Capability
   14. Summary
   15. • Notes
2. Chapter 2 Economic Value
   The Guiding Force of Pricing Strategy
   1. The Role of Value in Pricing
   2. How to Estimate Economic Value
      1. Competitive Reference Prices
      2. Estimating Monetary Value
      3. Monetary Value Estimation: An Illustration
      4. Estimating Psychological Value
      5. Psychological Value Estimation: An Illustration
      6. The High Cost of Shortcuts
   3. Value-Based Market Segmentation
      1. Step 1: Determine Basic Segmentation Criteria
      2. Step 2: Identify Discriminating Value Drivers
      3. Step 3: Determine Your Operational Constraints and Advantages
      4. Step 4: Create Primary and Secondary Segments
      5. Step 5: Create Detailed Segment Descriptions
      6. Step 6: Develop Segment Metrics and Fences
   4. Summary
   5. • Notes
3. Chapter 3 Price and Value Communication
   Strategies to Influence Willingness-to-Pay
   1. Value Communication
   2. Adapting the Message for Product Characteristics
      1. Low-Involvement, Psychological Benefits
      2. Low-Involvement, Economic Benefits
      3. High Involvement, Psychological Benefits
      4. High Involvement, Economic Benefits
   3. Strategies for Conveying Value
      1. Competitive-Reference Effect
      2. Switching-Cost Effect
      3. Difficult-Comparison Effect
      4. End-Benefit Effect
      5. Price-Quality Effect
      6. Expenditure Effect
      7. Shared-Cost Effect
      8. Transaction Value Effect
      9. Fairness Effect
   4. Multiple Participants in the Buying Process
   5. Summary
   6. • Notes
4. Chapter 4 Price Structure
   Tactics for Pricing Differently Across Customer Segments
   1. Challenges That Can Undermine Segmented Pricing
   2. Offer Configurations
      1. Optimizing the Structure of Offer Bundles
      2. Designing Segment-Specific Bundles
      3. Unbundling Strategically
   3. Price Metrics
      1. Creating Good Price Metrics
      2. Performance-Based Metrics
      3. Tie-Ins as Metrics
   4. Price Fences
      1. Buyer Identification Fences
      2. Purchase Location Fences
      3. Time-of-Purchase Fences
      4. Purchase Quantity Fences
   5. Peak Pricing and Yield Management
   6. Summary
   7. • Notes
5. Chapter 5 Pricing Policy
   Influencing Customer Expectations and Purchase Behaviors
   1. Pricing Policies and Price Expectations
   2. The Emergence of Strategic Sourcing
   3. Policies for Price Negotiation
   4. Policies for Responding to Price Objections
      1. The Problem with Reactive, Ad Hoc Price Negotiation
      2. The Benefits of Proactive, Policy-Based Price Negotiation
      3. Policies for Different Buyer Types
      4. Policies for Dealing with Power Buyers
   5. Policies for Successfully Managing Price Increases
      1. Policies for Leading an Industry-Wide Increase
      2. Policies for Transitioning from Flexible to Policy-Based Pricing
   6. Policies for Pricing in an Economic Downturn
   7. Policies for Promotional Pricing
   8. Summary
   9. • Notes
6. Chapter 6 Price Level
   Setting Prices that Capture a Share of the Value Created
   1. The Price-Setting Process
      1. Step 1: Define the Viable Price Range
      2. Step 2: Make Strategic Choices
      3. Step 3: Assess Breakeven Sales Changes
      4. Step 4: Gauge Price Elasticity
      5. Step 5: Account for Psychological Factors
   2. Communicating New Prices to the Market
   3. Summary
   4. • Notes
7. Chapter 7 Price Competition
   Managing Conflict Thoughtfully
   1. Understanding the Pricing Game
   2. Competing to Grow Profitably
   3. Reacting to Competition: Think Before You Act
   4. Managing Competitive Information
   5. Collect and Evaluate Competitive Information
      1. Selectively Communicate Information
   6. When Should You Compete on Price?
   7. Summary
   8. • Notes
8. Chapter 8 Measurement of Price Sensitivity
   Research Techniques to Supplement Judgment
   1. Types of Measurement Procedures
      1. Uncontrolled Studies of Actual Purchases
      2. Historical Sales Data
      3. Panel Data
      4. Store-Level Transaction Data
      5. Analyzing Historical Data
   2. Experimentally Controlled Studies of Actual Purchases
      1. In-Store Purchase Experiments
      2. Laboratory Purchase Experiments
   3. Uncontrolled Studies of Preferences and Intentions
      1. Direct Questioning
      2. Buy-Response Surveys
      3. Attribute Rating
      4. In-Depth Interviews
   4. Experimentally Controlled Studies of Preferences and Intentions
      1. Simulated Purchase Experiments
      2. Trade-Off (Conjoint) Analysis
   5. Using Measurement Techniques Appropriately
      1. Using Judgment for Better Measurement
      2. Using Online and Mobile Techniques
      3. Outside Sources of Data
      4. Selecting the Appropriate Measurement Technique
   6. Summary
   7. • Notes
9. Chapter 9 Financial Analysis
   Analyzing Costs and Profits for Pricing
   1. Evaluating the Financial Implications of Price Alternatives
   2. Why Incremental Costs?
   3. Why Focus on Avoidable Costs?
   4. Understanding the Financial Implications of Alternative Price Levels
      1. Evaluating the Potential Profitability of a Price Change
   5. Breakeven Sales Incorporating a Change in Variable Costs
   6. Breakeven Sales Analysis for Reactive Pricing
   7. Mapping a Range of Potential Financial Outcomes
   8. Breakeven Sales Curves
   9. Watching Your Baseline
   10. Covering Non-Incremental Fixed and Sunk Costs
   11. Summary
   12. • Notes
   13. Appendix 9A
       Case study
   14. Appendix 9B
       Derivation of the Breakeven Formula
10. Chapter 10 Specialized Strategies
    Adapting Pricing to Accommodate Common Challenges
    1. Adapting Pricing Strategy over Category Life Cycle
       1. Pricing an Innovation
       2. Price Reductions in Growth
       3. Pricing the Established Product in Maturity
    2. Managing Export Prices in Foreign Currencies
       1. Foreign Market Sales Strategy
       2. Competitive Impact of Exchange Rate Shifts
       3. Four Generic Strategies for Managing Exchange Rate Price Adjustments
    3. Managing Pricing When Markets Slump
    4. Creating Economically Efficient Transfer Prices
    5. Summary
    6. • Notes
11. Chapter 11 Creating Strategic Pricing Capability
    Assembling Talent, Processes, and Data to Build Competitive Advantage
    1. Essential Elements of the Pricing Organization
       1. Creating Alignment on Pricing Objectives
       2. Matching the Extent of Pricing Centralization with Organizational Needs
       3. Decision Rights Specify Pricing Roles and Responsibilities
       4. Pricing Processes to Ensure Successful Strategy Implementation
       5. Performance Measures and Incentives: Aligning Sales Incentives with Strategy
    2. Systems to Support the Pricing Function
       1. Data Needed to Inform the Pricing Function
       2. Common Protocols for Creating Relevant Insights
       3. Customer Analytics to Guide Management Choices
       4. Analysis of Win-Loss Data
       5. Customer Profitability and Cost to Serve
       6. Process Management Analytics
       7. Price Bands
       8. Price Waterfalls
       9. Pricing Systems
    3. Managing the Organizational Change Process
       1. Senior Management Leadership
       2. Demonstration Projects
    4. Summary
    5. • Notes
12. Chapter 12 Ethics and the Law
    Understanding the Constraints on Pricing
    1. Ethical Constraints on Pricing
    2. The Legal Framework for Pricing
       1. The Effect of Sarbanes-Oxley on Pricing Practices
    3. Price Fixing or Price Encouragement
       1. Horizontal Price Fixing
    4. Resale Price Fixing or Encouragement
       1. Vertical Price Fixing
       2. Direct Dealing Programs
       3. Resale Price Encouragement
    5. Price and Promotional Discrimination
       1. Price Discrimination
       2. Defenses to Price Discrimination
       3. Promotional Discrimination
       4. Competitive Injury, Defenses, and Indirect Purchasers
    6. Using Non-Price Variables to Support Pricing Goals
       1. Vertical Non-Price Restrictions
       2. Non-Price Incentives
    7. Other Pricing Issues
       1. Predatory Pricing
       2. Price Signaling
    8. Summary
    9. • Notes

1. Cover
2. Title
3. Copyright
4. Contents
5. Detailed Table of Contents
6. Preface
7. Acknowledgments
8. List of In-Line Boxes
9. List of Exhibits
10. Chapter 1 Strategic Pricing Coordinating the Drivers of Profitability
    1. Leveraging Profit into Sustainable Growth
    2. Cost-Plus Pricing
    3. Customer-Driven Pricing
    4. Share-Driven Pricing
    5. The Role of "Optimizing" in Strategic Pricing
    6. What Is Strategic Pricing?
    7. Value Creation
    8. Value Communication
    9. Price Structure
    10. Pricing Policy
    11. Price Setting
    12. Price Competition
    13. Creating a Strategic Pricing Capability
    14. Summary
    15. • Notes
11. Chapter 2 Economic Value The Guiding Force of Pricing Strategy
    1. The Role of Value in Pricing
    2. How to Estimate Economic Value
       1. Competitive Reference Prices
       2. Estimating Monetary Value
       3. Monetary Value Estimation: An Illustration
       4. Estimating Psychological Value
       5. Psychological Value Estimation: An Illustration
       6. The High Cost of Shortcuts
    3. Value-Based Market Segmentation
       1. Step 1: Determine Basic Segmentation Criteria
       2. Step 2: Identify Discriminating Value Drivers
       3. Step 3: Determine Your Operational Constraints and Advantages
       4. Step 4: Create Primary and Secondary Segments
       5. Step 5: Create Detailed Segment Descriptions
       6. Step 6: Develop Segment Metrics and Fences
    4. Summary
    5. • Notes
12. Chapter 3 Price and Value Communication Strategies to Influence Willingness-to-Pay
    1. Value Communication
    2. Adapting the Message for Product Characteristics
       1. Low-Involvement, Psychological Benefits
       2. Low-Involvement, Economic Benefits
       3. High Involvement, Psychological Benefits
       4. High Involvement, Economic Benefits
    3. Strategies for Conveying Value
       1. Competitive-Reference Effect
       2. Switching-Cost Effect
       3. Difficult-Comparison Effect
       4. End-Benefit Effect
       5. Price-Quality Effect
       6. Expenditure Effect
       7. Shared-Cost Effect
       8. Transaction Value Effect
       9. Fairness Effect
    4. Multiple Participants in the Buying Process
    5. Summary
    6. • Notes
13. Chapter 4 Price Structure Tactics for Pricing Differently Across Customer Segments
    1. Challenges That Can Undermine Segmented Pricing
    2. Offer Configurations
       1. Optimizing the Structure of Offer Bundles
       2. Designing Segment-Specific Bundles
       3. Unbundling Strategically
    3. Price Metrics
       1. Creating Good Price Metrics
       2. Performance-Based Metrics
       3. Tie-Ins as Metrics
    4. Price Fences
       1. Buyer Identification Fences
       2. Purchase Location Fences
       3. Time-of-Purchase Fences
       4. Purchase Quantity Fences
    5. Peak Pricing and Yield Management
    6. Summary
    7. • Notes
14. Chapter 5 Pricing Policy Influencing Customer Expectations and Purchase Behaviors
    1. Pricing Policies and Price Expectations
    2. The Emergence of Strategic Sourcing
    3. Policies for Price Negotiation
    4. Policies for Responding to Price Objections
       1. The Problem with Reactive, Ad Hoc Price Negotiation
       2. The Benefits of Proactive, Policy-Based Price Negotiation
       3. Policies for Different Buyer Types
       4. Policies for Dealing with Power Buyers
    5. Policies for Successfully Managing Price Increases
       1. Policies for Leading an Industry-Wide Increase
       2. Policies for Transitioning from Flexible to Policy-Based Pricing
    6. Policies for Pricing in an Economic Downturn
    7. Policies for Promotional Pricing
    8. Summary
    9. • Notes
15. Chapter 6 Price Level Setting Prices that Capture a Share of the Value Created
    1. The Price-Setting Process
       1. Step 1: Define the Viable Price Range
       2. Step 2: Make Strategic Choices
       3. Step 3: Assess Breakeven Sales Changes
       4. Step 4: Gauge Price Elasticity
       5. Step 5: Account for Psychological Factors
    2. Communicating New Prices to the Market
    3. Summary
    4. • Notes
16. Chapter 7 Price Competition Managing Conflict Thoughtfully
    1. Understanding the Pricing Game
    2. Competing to Grow Profitably
    3. Reacting to Competition: Think Before You Act
    4. Managing Competitive Information
    5. Collect and Evaluate Competitive Information
       1. Selectively Communicate Information
    6. When Should You Compete on Price?
    7. Summary
    8. • Notes
17. Chapter 8 Measurement of Price Sensitivity Research Techniques to Supplement Judgment
    1. Types of Measurement Procedures
       1. Uncontrolled Studies of Actual Purchases
       2. Historical Sales Data
       3. Panel Data
       4. Store-Level Transaction Data
       5. Analyzing Historical Data
    2. Experimentally Controlled Studies of Actual Purchases
       1. In-Store Purchase Experiments
       2. Laboratory Purchase Experiments
    3. Uncontrolled Studies of Preferences and Intentions
       1. Direct Questioning
       2. Buy-Response Surveys
       3. Attribute Rating
       4. In-Depth Interviews
    4. Experimentally Controlled Studies of Preferences and Intentions
       1. Simulated Purchase Experiments
       2. Trade-Off (Conjoint) Analysis
    5. Using Measurement Techniques Appropriately
       1. Using Judgment for Better Measurement
       2. Using Online and Mobile Techniques
       3. Outside Sources of Data
       4. Selecting the Appropriate Measurement Technique
    6. Summary
    7. • Notes
18. Chapter 9 Financial Analysis Analyzing Costs and Profits for Pricing
    1. Evaluating the Financial Implications of Price Alternatives
    2. Why Incremental Costs?
    3. Why Focus on Avoidable Costs?
    4. Understanding the Financial Implications of Alternative Price Levels
       1. Evaluating the Potential Profitability of a Price Change
    5. Breakeven Sales Incorporating a Change in Variable Costs
    6. Breakeven Sales Analysis for Reactive Pricing
    7. Mapping a Range of Potential Financial Outcomes
    8. Breakeven Sales Curves
    9. Watching Your Baseline
    10. Covering Non-Incremental Fixed and Sunk Costs
    11. Summary
    12. • Notes
    13. Appendix 9A Case study
    14. Appendix 9B Derivation of the Breakeven Formula
19. Chapter 10 Specialized Strategies Adapting Pricing to Accommodate Common Challenges
    1. Adapting Pricing Strategy over Category Life Cycle
       1. Pricing an Innovation
       2. Price Reductions in Growth
       3. Pricing the Established Product in Maturity
    2. Managing Export Prices in Foreign Currencies
       1. Foreign Market Sales Strategy
       2. Competitive Impact of Exchange Rate Shifts
       3. Four Generic Strategies for Managing Exchange Rate Price Adjustments
    3. Managing Pricing When Markets Slump
    4. Creating Economically Efficient Transfer Prices
    5. Summary
    6. • Notes
20. Chapter 11 Creating Strategic Pricing Capability Assembling Talent, Processes, and Data to Build Competitive Advantage
    1. Essential Elements of the Pricing Organization
       1. Creating Alignment on Pricing Objectives
       2. Matching the Extent of Pricing Centralization with Organizational Needs
       3. Decision Rights Specify Pricing Roles and Responsibilities
       4. Pricing Processes to Ensure Successful Strategy Implementation
       5. Performance Measures and Incentives: Aligning Sales Incentives with Strategy
    2. Systems to Support the Pricing Function
       1. Data Needed to Inform the Pricing Function
       2. Common Protocols for Creating Relevant Insights
       3. Customer Analytics to Guide Management Choices
       4. Analysis of Win-Loss Data
       5. Customer Profitability and Cost to Serve
       6. Process Management Analytics
       7. Price Bands
       8. Price Waterfalls
       9. Pricing Systems
    3. Managing the Organizational Change Process
       1. Senior Management Leadership
       2. Demonstration Projects
    4. Summary
    5. • Notes
21. Chapter 12 Ethics and the Law Understanding the Constraints on Pricing
    1. Ethical Constraints on Pricing
    2. The Legal Framework for Pricing
       1. The Effect of Sarbanes-Oxley on Pricing Practices
    3. Price Fixing or Price Encouragement
       1. Horizontal Price Fixing
    4. Resale Price Fixing or Encouragement
       1. Vertical Price Fixing
       2. Direct Dealing Programs
       3. Resale Price Encouragement
    5. Price and Promotional Discrimination
       1. Price Discrimination
       2. Defenses to Price Discrimination
       3. Promotional Discrimination
       4. Competitive Injury, Defenses, and Indirect Purchasers
    6. Using Non-Price Variables to Support Pricing Goals
       1. Vertical Non-Price Restrictions
       2. Non-Price Incentives
    7. Other Pricing Issues
       1. Predatory Pricing
       2. Price Signaling
    8. Summary
    9. • Notes
22. Index

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Guide

1. Cover
2. Title
3. Copyright
4. Contents
5. Detailed Table of Contents
6. Preface
7. Acknowledgments
8. List of In-Line Boxes
9. List of Exhibits
10. Start of Content
11. Index