Zhan Pang
Dr. Zhan Pang

 

Lecturer in Management Science
Lancaster University Management School

Phone (O): (+44) 1524593731
z.pang@lancaster.ac.uk and dr.zhan.pang@gmail.com

Office Hours: Monday 2PM-4PM or by appointment in Room A59

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MSCI583 Pricing Analytics and Revenue Management

http://www.lums.lancs.ac.uk/masters/management-science/modules/MSCI583/

Pricing is a fundamental business discipline that is closely related to corporate strategy, marketing, finance, and operations across the whole business process. This course aims to introduce this multi-discipline subject to the master students across different programmes related to Management Science and those who plan to start their careers as business analysts.   

Business Analytics has been recognized as a new source of competitive advantage, more and more organizations. It embraces data-driven business intelligence and analytics to gain insights. Pricing Analytics, as one of the critical territories of business analytics, has emerged as an important weapon to gain profitability and drive high performance.  It becomes the core skill of pricing analyst. We will introduce Pricing Analytics at three levels: Descriptive pricing analytics (level one) - use data to demonstrate what happened in the past and what is happening now. Predictive pricing analytics (level two) – use statistical modelling to predict potential future outcomes and explain the drivers of the observed phenomena. Prescriptive pricing analytics (level three) - associate decision alternatives with the prediction of future outcomes to optimize business processes to achieve business objectives. It synthesizes statistics and data science, mathematical and behavioural science, and business principles.

This pricing course is largely centred in the quantitative skills in pricing analytics.  We will also associate the pricing analytics to behaviour science (e.g., consumer behaviour) and social science (e.g., social networking).  The course is structured according to the three levels of analytics (descriptive/predictive/prescriptive), connecting theory to practice through the business contexts and data analysis.

During the lectures, we may also discuss other topics on the strategic pricing management, including price competition (price war), online mechanism design (auctioning and bidding), and contract design and negotiation between businesses, and digital marketing and social network marketing.

Revenue Management or Yield Management is a growing business discipline that integrates demand-side management (e.g., segmentation, pricing and availability) andsupply-side management (e.g., capacity allocation and inventory control) in competitive market environments. Starting from Airline industry in 1970’s, it has grown into a mainstream business practice in varieties of service industries (e.g., Walt Disney Land, hotels, car rentals) and some manufacturing industries (e.g., Ford). It has also created its own supporting industry with established consulting firms, IT solution providers.  Major airlines (e.g., AA, BA, Continental, Lufthansa and SAS) have large numbers of staffs of IT and OR analysts working on revenue management. This part aims at introducing the relevant modelling and optimization techniques to help service providers to maximize their revenue for perishable assets.

Pre-requisites: Introductory statistics, optimisation, SPSS, and SAS.

Learning Outcomes 

By the end of the module you should be able to:

Outline Lecture Plan  

Software:  MS Word/Excel, IBM SPSS, SAS 9.2

1. Pricing in Business and Its Economics Foundation
2. Descriptive Pricing Analytics (workshop 1)
3. Predictive Pricing Analytics (workshop 2)
4. Prescriptive Pricing Analytics (workshop 3)
5. Experimental Pricing Research (workshop 4)
6. Revenue Management
7. Guest Lecture (TBD)

Materials: 

We do not have a single book for this new subject. The following are some useful sources. You can find most of concepts involved in this course.

Industry Partner: PROS

Other useful links:

Deloitte: Pricing Analytics: The three-minute guide

Nielson: Pricing Analytics

Symphony Teleca: Pricing Analytics

PROS: Pricing Solutions

SAS® Revenue Management & Price Optimization Analytics

Columbia Business School: Pricing Analytics (Executive Program)

Job markets:

Indeed.co.uk

Linkedin

 

 



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Last updated on November 11, 2013.

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