Strategy
Prospect Theory in Pricing for a 40-Person SaaS Scale-Up
Overview
What this challenge is about.
You are a pricing strategist at TaskFlow. Your task is to analyze how existing PLG customers (who pay a flat fee) would perceive a move to tiered pricing. Using prospect theory, design a pricing structure that frames the change as a gain (e.g., grandfathered plans, feature bonuses) rather than a loss. Deliver a pricing model with three tiers, a migration plan, and a behavioral rationale. Success is measured by a predicted churn rate below 5% during transition.
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.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
Careers
Roles this prepares you for.
Real titles. Real skill bridges. Pick the one closest to your trajectory.
Career mappings coming soon.