Problem 1. A price-setting process is a sophisticated multi-step approach that has to take into account the external environment, competitors, and consumer demand for the product, as well as internal factors such as operating costs. Briefly summarize the main steps of the price setting process and outline the most important aspect of each stage. You are expected to present research findings (from a company or industry, as well as academic) while answering this question.
Problem 2. Do firms need to employ different pricing strategies for their online operations? Briefly describe and analyze innovative pricing strategies that are used in the online environment. Give examples of companies successfully using them. Based on your research, recommend an online pricing strategy for your organization.
Baye, M., Gatti J, Rupert J., Kattuman P, & Morgan J. (2007, Fall). A dashboard for online pricing. California Management Review, 50(1), 202-216, is a good place to start your research for answering this question.