Pricing Approach
This section focuses on the quantitative approach to calculating your optimal price point, based on your selected pricing strategy. We walk through a three-phase approach to determining the appropriate price point: 1) data collection, 2) analysis and insights, and 3) pricing. Price curve analysis is introduced, along with several examples illustrating how price curve analysis is used.

Price Sensitivity Analysis
The focus of this section is price sensitivity modeling. We walk through a five-step process to deriving a formula for price sensitivity. This process addresses, defines, and teaches the following concepts: 9 drivers to price sensitivity, elasticity factors, and threshold of no elasticity. The 9 drivers to price sensitivity are as follows:

• Reference Price Effect
• Difficult Comparison Effect
• Switching Costs Effect
• Price-Quality Effect
• Expenditure Effect
• End-Benefit Effect
• Shared-cost Effect
• Fairness Effect
• The Framing Effect

Pricing Tactics and Terminology
This toolkit closes with overviews for a number of pricing tactics. These pricing tactics are as follows:

• Value Pricing
• Loss Leader Pricing
• Psychological Pricing
• Going Rate Pricing / Price Leadership
• Tender Pricing
• Price Discrimination
• Predatory Pricing
• Absorption Pricing
• Marginal Cost Pricing
• Cost-Plus Pricing