After this course, students will be able to:
1. Understand different strategies and tactics to create value for customers of smart services
2. Know how to create powerful value propositions for smart services and how to avoid the pitfalls in value proposition design
3. Know how to identify and set the optimal price for smart services
4. Apply an analytical framework to assess value proposition and pricing strategies of smart services

“Value Proposition and Pricing of Smart Services” is the second course (next to Interaction Design) in the Service Design specialization of the MSc Business Intelligence & Smart Services.
The course is based on the idea that customers buy value propositions, and not products, services or features. The course has two main objectives, namely to teach students how to create an outstanding value proposition for smart services and how to capture the value through an optimal value-based pricing strategy.
The first half of the course is dedicated to introducing students to different strategies and tactics marketers use to create value for (and with) customers of smart services. In the second part of the course we focus on how firms can ensure that they reap the (financial) benefits for their value creation efforts. In particular, we focus on pricing, which is generally the least taught of the 4Ps despite its tremendous implications for firms’ financial and strategic performance. In particular, we examine the user/consumer psychology of pricing for smart services as well as its strategic grounds.