Prospect Theory in Pricing for a 40-Person SaaS Scale-Up
Overview
What this challenge is about.
You analyze flat-fee SaaS users to design a tiered pricing model using prospect theory, keeping churn under 5%. Earn a verifiable certificate.
The scenario
TaskFlow is a 40-person SaaS scale-up in San Francisco, offering project management software. They have 10,000 PLG customers (average $50/month) and are targeting 200 enterprise clients. The shift to tiered pricing is essential for growth but risks alienating existing users.
The Brief
What you'll do, and what you'll demonstrate.
How can TaskFlow implement tiered pricing for enterprise customers without triggering loss aversion and high churn among existing PLG users?
Earning criteria — what you'll demonstrate
- Apply prospect theory to real-world pricing decisions
- Design framing strategies to mitigate loss aversion in customer transitions
- Analyze trade-offs between revenue optimization and customer retention
- Integrate behavioral insights with traditional pricing models
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Behavioural Finance
Master · Finance
Strong alignment
This challenge maps to Behavioural Finance at the Master level. It sharpens the same practical skills your coursework expects — but in a real industry context with actual constraints and deliverables.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
- Prospect Theory
Apply prospect theory to solve real industry problems and demonstrate production-level capability.
- Loss Aversion
Apply loss aversion to solve real industry problems and demonstrate production-level capability.
- Framing Effects
Apply framing effects to solve real industry problems and demonstrate production-level capability.
- Pricing Strategy
Apply pricing strategy to solve real industry problems and demonstrate production-level capability.
- Behavioral Economics
Apply behavioral economics to solve real industry problems and demonstrate production-level capability.
- Customer Segmentation
Apply customer segmentation to solve real industry problems and demonstrate production-level capability.
Careers
Career paths this challenge builds toward
Completing this challenge demonstrates skills that transfer directly to these roles: