This document discusses a pricing course at the University of Aarhus taught by Anthony Dukes. It uses the example of the Tassimo single-serve coffee machine, noting that at $169 it is one of the most expensive machines but also brews high quality coffee and espresso-based drinks that rival Starbucks, with creamy foam on the cappuccino. The document introduces the topics of competition and price signaling that will be covered in the course.

1. Pricing 2505 (Fall 2006) University of Aarhus
School of Economics and Managment Anthony Dukes
Competition
Price Signaling
Competition
Price Signaling: Introductory Example
• Tassimo
• $169
• Rating: 4.5 Cups
The Cadillac of single-serve coffee systems,
Kraft's Tassimo is one of the most
expensive machines on the market. But it
also brews up one of the best cups of Joe
and the most authentic espresso-based
drinks. The latte rivals Starbucks, and the
foam on the cappuccino is good until almost
the last drop.