1 of 6

Marketing | Practical Lesson 12 PhD. E. Khodjaniyazov

MARKETING

PRACTICAL LESSON 12

Pricing Strategies

Duration: 90 min Individual & Group PhD. E. Khodjaniyazov

LEARNING OBJECTIVES

Identify and explain at least 8 pricing strategies from the lecture
Match each pricing strategy to the business context where it is most appropriate
Calculate price elasticity of demand (PED) and apply it to pricing decisions
Distinguish between elastic and inelastic demand and explain revenue implications
Evaluate the ethical implications of strategies like predatory pricing and psychological pricing
Recommend and justify a pricing strategy for a given Uzbek business scenario

0 Lesson Timeline (90 min)

Time	Activity	Format
0 – 10 min	Warm-Up Discussion	Pair work
10 – 25 min	Task 1 — Pricing Strategy Identification	Individual
25 – 45 min	Task 2 — Elasticity Calculations & Revenue Analysis	Individual
45 – 65 min	Task 3 — Pricing Strategy Selection (Group)	Groups of 3–4
65 – 80 min	Task 4 — Pricing Recommendation for a Uzbek Business	Individual
80 – 90 min	Discussion, Peer Review & Wrap-Up	Full class

1 Warm-Up (10 min)

Discuss the following questions with a partner:

STARTER QUESTIONS

Have you ever seen a product priced at 99,900 UZS instead of 100,000 UZS? Did it influence your perception of value? Why do companies do this?

Think of a product that is very cheap at first but expensive over time (e.g. a printer and its ink cartridges). What pricing strategy is at work?

2 of 6

Marketing | Practical Lesson 12 PhD. E. Khodjaniyazov

3. If a new restaurant opens in Tashkent, should it charge high prices to signal quality, or low prices to attract customers quickly? What are the risks of each approach?

2 Practical Tasks

TASK 1 — Pricing Strategy Identification & Matching | Individual · 15 min

Match each scenario to the correct pricing strategy from the lecture. Then explain in one sentence why that strategy fits the situation.

#	Scenario	Pricing Strategy	Explanation
1	Uzum.uz offers a new product category at 30% below cost for the first month to quickly build a large customer base
2	A new iPhone model launches at 12,000,000 UZS targeting early adopters; price drops significantly after 6 months
3	A supermarket sells cooking oil at a loss, knowing customers will buy many other items during the same visit
4	A BMW dealership prices cars based on the luxury image and prestige consumers associate with the brand
5	All major petrol stations in Tashkent charge very similar prices, following the dominant brand’s lead
6	A construction company submits a secret bid price to win a government building contract
7	A clothing store prices all items ending in ₙ9: 49,999 UZS, 89,999 UZS, 129,999 UZS, etc.
8	An airline charges the full cost of operating the flight plus a 15% profit margin on each ticket
9	A cinema charges 30,000 UZS for a matinee and 60,000 UZS for the same film on Friday evening
10	A factory sets its price so that total revenue covers all fixed and variable costs plus a target profit of 20%

3 of 6

Marketing | Practical Lesson 12

PhD. E. Khodjaniyazov

💡 Tip: Strategies: Penetration, Market Skimming, Value Pricing, Loss Leader, Psychological, Going Rate / Price Leadership, Tender, Price Discrimination, Predatory / Destroyer, Full Cost / Absorption, Marginal Cost, Contribution, Target, Cost-Plus.

TASK 2 — Elasticity Calculations & Revenue Analysis | Individual · 20 min

Part A — Calculate Price Elasticity of Demand (PED = % change in Qty Demanded ÷ % change in Price):

#	Product	Price Change	Qty Change	PED Value	Elastic/Inelastic & Revenue Effect
1	Bread (staple food)	Price rises 20%	Qty falls 4%
2	Designer handbag	Price rises 10%	Qty falls 18%
3	Petrol	Price rises 15%	Qty falls 6%
4	Streaming app subscription	Price rises 25%	Qty falls 30%
5	Salt	Price rises 50%	Qty falls 2%

Part B — Answer these pricing decision questions:

A UzFood product has PED = –0.3. Should the company raise or lower its price to increase revenue? Justify your answer.

A tech startup has PED = –2.5 for its new app. What pricing strategy best fits this elasticity? Explain why.

Why is marginal cost pricing particularly useful for airlines or bus operators? Give a numerical example.

TASK 3 — Pricing Strategy Selection & Justification | Group of 3–4 students · 20 min

4 of 6

Marketing | Practical Lesson 12 PhD. E. Khodjaniyazov

Scenario: EcoRide is launching affordable electric scooters in Tashkent. Production cost per scooter = 8,000,000 UZS. Market research shows high price sensitivity but strong long-term demand. Two established competitors exist at 12,000,000 UZS and 18,000,000 UZS.

Strategy Considered	Suggested Price	Main Argument FOR	Main Risk AGAINST
Penetration Pricing (9,200,000 UZS)
Market Skimming (15,000,000 UZS)
Value Pricing (11,000,000 UZS)
Cost-Plus Pricing (cost + 25% markup)

Group Decision — which pricing strategy do you recommend? Include the exact price and justification (3–4 sentences):

TASK 4 — Pricing Recommendation for a Uzbek Business | Individual · 15 min

Choose one business below and write a full pricing strategy recommendation including: (1) chosen strategy,

(2) specific price point, (3) elasticity considerations, (4) how the price will change over time, and (5) one ethical consideration.

	Business / Product	Context
A	A new locally-made sparkling water brand entering Tashkent supermarkets	Food & Beverage
B	A private English-language tutoring platform for university students	Education / Tech
C	A high-end Uzbek silk clothing brand launching an e- commerce store	Fashion / Retail
D	Your own business idea	---

Your Pricing Recommendation:

5 of 6

Marketing | Practical Lesson 12

PhD. E. Khodjaniyazov

3 Group Discussion (10 min)

DISCUSSION QUESTIONS — Full Class

Predatory pricing is described as 'anti-competitive and illegal if proven.' Why is it so difficult to legally prove? Can you think of a real example where this boundary was tested?
Psychological pricing (99,999 UZS vs 100,000 UZS) works in many markets. Do you think it works equally well in Uzbekistan? Are there cultural factors that make Uzbek consumers more or less susceptible?
A supermarket uses loss leaders to attract customers. Is this ethical? Who benefits and who might

be harmed by this practice?

With e-commerce growing in Uzbekistan, price transparency is increasing. How does instant price comparison affect strategies like Going Rate pricing or Value Pricing?

4 Assessment Rubric

Task	Max Points	Criteria
Task 1 — Strategy ID	20 pts	2 pts per scenario: correct strategy (1.5), explanation (0.5)
Task 2 — Elasticity	25 pts	PED calculations (10: 2 per row), Part B written answers (15: 5 each)
Task 3 — Group Selection	30 pts	Arguments table (12), group decision quality (10), price justification (8)
Task 4 — Recommendation	25 pts	Strategy (5), price point (4), elasticity (5), lifecycle plan (5), ethics (6)
TOTAL	100 pts	90–100: Excellent · 75–89: Good · 60–74: Satisfactory · Below 60: Needs revision

5 Homework / Independent Study

ASSIGNMENTS FOR NEXT SESSION

6 of 6

Marketing | Practical Lesson 12

PhD. E. Khodjaniyazov

1. Visit any three shops (physical or online) in Uzbekistan and record 5 examples of pricing strategies in use. For each, identify the strategy, explain why the business likely chose it, and evaluate its effectiveness.
2. Calculate PED for a product of your choice using real price and quantity data. Present your calculation, interpret the result, and make a pricing recommendation.
3. Research the pricing history of a global technology product (e.g. PlayStation, iPhone, flat- screen TVs). Identify what strategies were used at each stage of the product life cycle and explain the transitions.
4. Draft a one-page pricing plan for a new product of your choice, including strategy selection, price point, elasticity assessment, and planned price changes over 2 years.