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The world's leading experts in pricing have managed to find a golden mean between the rigor of classical theory and the richness of practical experience. As a result, this book has emerged - a work covering all aspects of price management. It presents quantitative and qualitative pricing methodologies and the most innovative developments in its theory and practice.
Hermann Simon and Martin Fassnacht have gone beyond the traditional concepts of "price theory" and "pricing policy" and proposed a new term - "price management," symbolizing a holistic approach to pricing strategy and its practical implementation.
The authors of the book also remind us that in Ancient Rome, the same word - pretium - was used to denote both price and value. This fundamental concept defines the success of price management, where the seller and buyer act together.
Simon and Fassnacht provide numerous examples from their own rich experience in research, consulting, and teaching in different countries and systematically reveal to the reader the process of price management, which consists of four stages: strategy, analysis, decision-making, and implementation. The authors take into account the specifics of various industries, including the production of consumer goods and industrial products, the service sector, and trade. Additionally, they examine the impact of technological innovations on pricing, including the internet, new sensor and measurement developments, which have defined the emergence of pricing models such as fixed rates, freemium, "pay-per-use," and "pay what you want."
Other relevant topics are addressed: new pricing metrics, big data, two-sided pricing systems, negative prices, and sharing economy, as well as fundamentally new payment systems, such as bitcoin.
Before you is a true encyclopedia for leaders who understand that price is not just a means to extract short-term profit but a tool that ensures sustainable growth in shareholder value in the long term.