At Purdue’s Mitch Daniels School of Business, students in Pricing Strategy and Algorithms are learning that pricing is far more than a number — it’s a powerful, data-driven lever that can shape strategy, competition and long-term value.
Taught by Professor Federico Rossi, the graduate-level course blends marketing strategy, microeconomic theory and advanced analytics to prepare students for a business landscape increasingly defined by artificial intelligence. From the outset, Rossi, who also teaches an undergraduate course on pricing, challenges students to think about pricing not just as a tactical decision, but as a dynamic process informed by data, experimentation and continuous learning.
“Pricing is a central topic in business and a core component of most master’s and MBA programs,” Rossi explains. “The course was created to provide students with a structured framework for understanding pricing decisions and their strategic implications.”
That framework is intentionally broad. Students explore questions such as how to price a new product, how to avoid destructive price wars and how to adapt pricing strategies as market conditions shift. At the same time, they are introduced to the growing role of algorithms and AI in shaping those decisions — tools that allow firms to test, learn and optimize prices in real time.
What sets the course apart, Rossi says, is its emphasis on engagement and discovery. Rather than relying on a single teaching format, each week introduces new types of activities — from case discussions to analytical problem-solving — to keep students actively involved.
“The goal is not only to maintain interest, but also to create moments of surprise and discovery in the learning process,” he says.
For students like Shruti Kunwar, that approach brings theory to life. Throughout the course, she and her teammates worked on a real-world pricing challenge for a West Lafayette business, applying tools such as conjoint analysis to understand customer preferences and design a pricing strategy.
“Throughout the term, we bridged the gap between AI-driven analytics and the strategic marketing logic behind everyday pricing,” Kunwar, a MS Marketing student, says. “It’s a nuanced field that demands a balance of deep critical thinking and data-driven strategy.”
The hands-on nature of the course is intentional. Students are expected not only to analyze data, but also to communicate their insights and defend their recommendations — skills essential for modern business leaders. Team-based projects, coding exercises in tools like Python or R, and class discussions all reinforce that objective.
By the end of the course, students leave with more than technical knowledge. They gain the ability to translate complex data into actionable pricing strategies and to understand how algorithmic systems are reshaping decision-making across industries.
“Students will be able to evaluate how algorithmic pricing and artificial intelligence are transforming modern pricing decisions,” Rossi says.
In an era where companies increasingly rely on data to stay competitive, that combination of strategic insight and analytical skill is not just valuable — it’s essential.
