Akshay R. Rao is the General Mills Chair in Marketing at the Carlson School of Management at the University of Minnesota. His research, which has focused on consumer behavior, channels of distribution, pricing strategy, and sales force management, has appeared in several journals including Journal of Marketing and Marketing Science. He is regularly consulted by the local and national media, such as PBS, the Wall Street Journal, and CNN. He is presently on the Editorial Review Boards of the Journal of Marketing, the Journal of Marketing Research, the Journal of Consumer Psychology, and the Journal of Consumer Research.
Toward a Theory of New-Product Pricing establishes three objectives: first, when pricing a new product, determining the value provided to the customer is essential; second, a theory of new-product pricing must consider how price influences a customer’s judgment; and lastly, the value of a product changes over time. The chapter proposes that a more appropriate theory can be developed by recognizing the evolutionary process of demand and price.