 Promoting demand-based pricingJournal of Revenue and Pricing Management, 2019, vol. 18, issue 1, No 4, 42-51 Abstract: Abstract Applied economists have been trying to sell businesses on the value of demand-based pricing for many years. Their arguments promoting demand-based pricing have not been particularly persuasive and cost-based pricing continues to be a dominant price-setting method. This paper suggests four changes that may lead more firms to use demand principles when they set prices. Applied economists should acknowledge the benefits of other price-setting processes, shift their focus from profit-optimization to profit-improvement opportunities (e.g., increasing price so it is closer to the demand function), develop pricing heuristics that better meet firm needs, and add new pricing topics to classroom discussions. Keywords: Profit improvement; Demand estimation; Cost-based pricing; Pricing curriculum (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:jorapm:v:18:y:2019:i:1:d:10.1057_s41272-017-0126-9 Ordering information: This journal article can be ordered from DOI: 10.1057/s41272-017-0126-9 Access Statistics for this article Journal of Revenue and Pricing Management is currently edited by Ian Yeoman More articles in Journal of Revenue and Pricing Management from Palgrave Macmillan |
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