For those scholars whose collaborative projects with us were delayed as a result of this book, we also want to thank you for indulging us as we prepared this manuscript. They will surely identify their personal and professional influences on us here. We want to thank them for working with us and for enriching our knowledge in pricing. The contents of this book reflect their influence as well. Over the years, our primary research interest has been in pricing, and we have collaborated with many first-rate scholars. We hope that they are still passionate about pricing and that they recognize in this book some of the insights they have contributed in class. For that reason, we want to thank our current and past students at the Wharton School and also at the Olin School of Business, Columbia Business School, UCLA, Indian School of Business (ISB) in India, and at the China-European International Business School (CEIBS) and Cheung Kong graduate School of Business (CKGSB) in China. Most of the material contained in this book builds on some of those discussions, which certainly helped to advance our understanding of those issues. In every chapter, we were reminded of all the students we have taught and who taught us. Writing this book has been a labor of love for us. Altogether, we must have taught pricing to four or five thousand people-from undergraduates, MBAs, and EMBAs, to professionals and business executives, both here in the U.S. This urge has grown in recent years as the pricing classes we have taught for more than a decade have grown in popularity. However, only in recent years did we realize that we are so indebted to many scholars who had written the ten thousand books that we should repay the debt by contributing one. We must have accomplished both a long time ago. 207 This page intentionally left blank Acknowledgments An old Chinese saying has it that to be a scholar, you must read ten thousand books and travel ten thousand miles. 119 Chapter 7: Subscribe and Save: Pricing for Marketing Profitability. 19 Chapter 2: Why the Best Things in Life Are Free. xi Introduction: Fingerprints of the Invisible Hand. This page intentionally left blank Contents About the Authors. We understand the price they have paid for us to write this book. Library of Congress Cataloging-in-Publication Data Raju, Jagmohan Singh, 1954– Smart pricing : how Google, Priceline, and leading businesses use pricing innovation for profitability / Jagmohan Raju, Z. Pearson Education-Japan Pearson Education Malaysia, Pte. Pearson Education Australia PTY, Limited. Printed in the United States of America First Printing April 2010 ISBN-10: 0-13-149418-X ISBN-13: 978-0-13-149418-3 Pearson Education LTD. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners. For sales outside the U.S., please contact International Sales at. For more information, please contact U.S. Publishing as Wharton School Publishing Upper Saddle River, New Jersey 07458 Wharton School Publishing offers excellent discounts on this book when ordered in quantity for bulk purchases or special sales. Proofreader: Language Logistics, LLC Indexer: Erika Millen Compositor: Nonie Ratcliff Manufacturing Buyer: Dan Uhrig © 2010 by Pearson Education, Inc. John Zhang Vice President, Publisher: Tim Moore Associate Publisher and Director of Marketing: Amy Neidlinger Wharton Editor: Steve Kobrin Executive Editor: Jeanne Glasser Editorial Assistant: Myesha Graham Operations Manager: Gina Kanouse Senior Marketing Manager: Julie Phifer Publicity Manager: Laura Czaja Assistant Marketing Manager: Megan Colvin Cover Designer: Chuti Prasertsith Managing Editor: Kristy Hart Senior Project Editor: Lori Lyons Copy Editor: Krista Hansing Editorial Services, Inc. Smart Pricing This page intentionally left blank Smart Pricing How Google, Priceline, and Leading Businesses Use Pricing Innovation for Profitability Jagmohan Raju Z. Chapter 7: Subscribe and Save: Pricing for Marketing Profitability. Chapter 2: Why the Best Things in Life Are Free. Introduction: Fingerprints of the Invisible Hand.
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