New Perspectives on Pricing

New Perspectives on Pricing

Have you ever heard of the rational consumer? Even more importantly, have you ever heard of the irrational consumer? The aim of this short course is to present how standard economics explains individual choices and why its models are not fully adequate when it comes to predicting human behavior in the real world. However, behavioral economics can provide you with a more realistic set of instruments to better understand consumers’ decisional processes. This course focuses on how to apply behavioral economics principles to the business environment. After a short introduction to standard and behavioral economics, the course will deal with the way individuals take decisions and how this process can be influenced and nudged by sound commercial initiatives. A further topic covered is the role of price in transactions and its impact on the utility experienced or realized by consumers. We will then move on to the concept of loss aversion, together with some interesting business implications. Finally, the course will briefly present the impact of two important factors on human choices and behavior: mental accounting and self-control.

Duration: 122 mins

Dr. Enrico Trevisan

Partner, Simon-Kucher & Partners

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