Integrating the value stick and loss aversion: Teaching pricing strategy through a Singaporean SME case

Abstract

This article presents an instructional innovation that integrates the Value Stick framework and the behavioural principle of loss aversion to teach strategic pricing and value creation through a culturally grounded experiential exercise. Anchored in the Bismillah Biryani case—based on a Michelin-endorsed SME in Singapore—the activity enables students to explore the emotional, operational, and psychological dynamics behind premium pricing in a low-margin market. Students engage in scenario-based simulations, value chain mapping, and behavioural reflection, supported by visual tools such as a Vertical Value Stick diagram and a structured rubric. The learning design bridges technical analysis with emotional realism, asking students not only what a firm can do, but what it might hesitate to do—revealing the impact of perceived loss, cultural identity, and brand equity in founder-led businesses. The activity has been deployed across MBA and executive education classrooms and shows strong student engagement and qualitative evidence of learning. This article contributes to management education by advancing a replicable, behaviourally informed, and culturally resonant model for teaching strategy and pricing through experiential learning.