Publications
Publications
- March 2014
- HBS Case Collection
Setting Price Effectively
By: Nava Ashraf and Kristin Johnson
Abstract
Price is one of the most powerful instruments a manager can use to influence the take-up of her product, especially in a subsidized and noncompetitive market as is common for global health products. However, the question of whether and how to price has been the subject of extensive policy debate: whether to charge users for life-saving health products and services, whether to distribute them for free, or whether to give additional incentives for individuals to use them. This note describes the latest, cutting-edge, research on how pricing influences the end user's decision to purchase and use vitally needed health products, opening a deeper and informed dialogue about pricing. The note concludes with a succinct guide to how to optimally price products based on different organizational goals and product characteristics.
Citation
Ashraf, Nava, and Kristin Johnson. "Setting Price Effectively." Harvard Business School Background Note 914-037, March 2014. (Request a courtesy copy.)