Description
Book SynopsisCombining perceptive insights from behavioral economics with leading-edge ideas on price management, this book offers a new approach to pricing. Gerald Smith demonstrates why understanding, reframing, and refining everyday pricing processes—one’s pricing orientation—results in a better long-term pricing strategy.
Trade ReviewAn insightful and engaging integration of behavioral theory and pricing practice. -- Thomas Nagle, founder of the Strategic Pricing Group and coauthor of
The Strategy and Tactics of Pricing: A Guide to Growing More ProfitablyWith
Getting Price Right, Gerald Smith provides an accessible and perceptive look at the behavioral elements of pricing strategy. -- Hermann Simon, founder and honorary chairman, Simon-Kucher & Partners
This is the most important pricing book to come out in the past twenty years. It provides the most thorough collection of alternatives for setting up the “just-right” department, complete with strategic objectives and tactical detail. For any executive who wants to build or evaluate an existing pricing department and for students of pricing, Smith’s book is truly a master class. -- Reed K. Holden, founder, Holden Advisors
Pricing continues to be one of the most powerful yet underused strategic levers
to drive sustainable earnings growth. Gerald Smith offers great insights into what gets in the way and provides actionable guidance on how to understand, reframe, and refine everyday pricing processes to drive superior financial outcomes and customer satisfaction. A must read for anyone looking to unleash the power of strategic pricing! -- Gagan Chawla, principal, large consulting organization
For any business owner or manager,
Getting Price Right is a must-read. Gerald Smith is one of the preeminent voices in the field of pricing, and this book delivers, demonstrating why understanding, reframing, and refining pricing strategy in a rapidly evolving marketplace results in better profitability and customer and consumer satisfaction. -- Eric Nyman, chief consumer officer, Hasbro
Smith shines light on the psychological biases that have long made pricing as much art as science. Drawing the link between behavioral economics and pricing theory, he explains how to take advantage of the quirks that motivate consumers to, for example, pony up for a subscription to shave “butter” instead of buying cheaper shaving cream at the drugstore. At the same time, Smith uncovers the competing magnetic forces that explain why finance, marketing, and accounting managers each seem to approach pricing problems from a different planet and how to optimize among their competing influences in the organization.
Getting Price Right steers new managers through the foundations of profitable pricing while offering new tricks for experts in readable prose with intuitive examples. -- Samuel Engel, senior vice president, ICF
There are introductory books available for people new to pricing and higher-level books for people who want to get into the theory of pricing and analytics. What has been missing is an advanced pricing strategy book that connects practical everyday pricing approaches with academic scholarship. Gerald Smith has done just that. This is an excellent read for all pricing stakeholders looking to better understand how pricing fundamentals like customer value and willingness-to-pay intersect with the evolving science of behavioral economics. -- Kirk Jackisch, president, Iris Pricing Solutions
This book makes a strong contribution to pricing knowledge by bridging the bodies of pricing and behavioral science with a unique focus on pricing orientation. It proposes a comprehensive and structured review of critical concepts with practical recommendations and examples on how to use them in real business life. This is a must-have book for any pricing practitioner’s library. -- Stephan M. Liozu, founder of Value Innoruption Advisors
Table of ContentsPreface
Part I. Behavioral Economics of Everyday Pricing Decisions1. Pricing Orientation | Pricing Strategy
2. Framing and Strategic Frames of Reference
3. Psychological Pricing Orientation: Psychological Price-Setting Bias and Skills
4. Social Pricing Orientation: Cultural Price-Setting Bias and Skills
Part II. Behavioral Economics of Cardinal Pricing Orientations5. Cost-Driven Pricing Orientation Biases and Skills
6. Customer Value–Driven Pricing Orientation Biases and Skills
7. Customer Willingness-to-Pay–Driven Pricing Orientation Biases and Skills
8. Competition-Driven Pricing Orientation Biases and Skills
9. Balanced Pricing Orientations, Profitable Pricing Strategy
Notes
Index
