Posts by: Tim J. Smith, PhD

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American Airlines vs. Sabre Holdings: Destruction or Creation of Airline Traveler Value?

By Tim J. Smith, PhD February 3, 2011

In January 2011, American Airlines (AMR) and Sabre Holdings, parent company of Travelocity, came to loggerheads over content, fees, and the role of global distribution systems in the future of air travel.  While American Airlines seeks to gain efficiencies and customer intimacy by encouraging customers and ticket brokers to connect directly with the American Airlines information systems, Sabre Holdings decries a reduction of choice and transparency and responds with a lower placement of American Airlines offerings in their distribution system.

Is American Airlines squeezing the distributors and harming customers or is this a strategic shift that improves welfare?

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Pigs Talking

By Tim J. Smith, PhD January 3, 2011

Pigs Talking on “The ‘Free’ Model”, a take on Wiglaf Journal emerging media editor David Dalka on Dear Facebook, Please Return Our…

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Top 6 – January 2011

By Tim J. Smith, PhD January 3, 2011

“No sensible person would claim that [quantification] can tell the whole story.” Angus Maddison, professor at the University of Groningen and authority…

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Pricing Strategy: Pricking the Veil of Value Exchange

By Tim J. Smith, PhD January 3, 2011

Our understanding of pricing has come a long way since the 1890 when Alfred Marshall published his treatise on the economic scissors of supply and demand, and it is time for practice to catch-up. To go beyond the price to value mantra and create clarity in the actions and decisions executives should make, we can draw from the marketing orientation of the firm and an economic understanding of value exchange. In this article, we provide an outline of the path to better pricing.

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Driving Compliance with Collecting Market Pricing

By Tim J. Smith, PhD January 3, 2011

The concepts associated with creating sustainable processes for monitoring market-based pricing is fairly intuitive. In past articles, I have shared a bit about how to get started and where to focus your energies. Because it is imperative for your company’s survival, this article addresses the hardest part of creating a sustainable pricing system; adapting pricing concepts to your way of doing business.

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Top 6 – December 2010

By Tim J. Smith, PhD December 1, 2010

St. Nicholas Day is coming …. anděl nebo čert? Google came from nowhere to being a global standard in just 10 years.…

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AT&T and Verizon Mobile Data: A Product Category Maturing

By Tim J. Smith, PhD December 1, 2010

In the past six months, both AT&T (NYSE:T) and Verizon (NYSE:VZ) have altered their mobile data service price structures.  First, they added a metered fee based on the megabytes of traffic.  Now, Verizon is considering a price structure based on the speed of traffic provided.  With all these new forms of charges, some have feared customer backlash:  defection, brand betrayal, and a public relations nightmare.  Yet they needn’t worry much. Both these titans are in well traversed territory.

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David Dalka

By Tim J. Smith, PhD November 6, 2010

Wiglaf Journal emerging media editor David Dalka just capped off a busy month! David spoke on a panel, “Selling Search to the…

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Leading with Price Will Kill Your Advertising, Branded Offers, and Ultimately Your Company

By Tim J. Smith, PhD November 6, 2010

Nowhere in marketing today do emotions run hotter than when it comes to the role of (low) prices highlighted in advertising. Only it’s a bad idea to lead with price in advertising.

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Top 6 – November 2010

By Tim J. Smith, PhD November 6, 2010

“There are three potentially successful generic strategic approaches to outperforming other firms in an industry: 1 Overall Cost Leadership; 2. Differentiation; 3…

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About The Author

timjsmith
Tim J. Smith, PhD, is the founder and CEO of Wiglaf Pricing, an Adjunct Professor of Marketing and Economics at DePaul University, and the author of Pricing Done Right (Wiley 2016) and Pricing Strategy (Cengage 2012). At Wiglaf Pricing, Tim leads client engagements. Smith’s popular business book, Pricing Done Right: The Pricing Framework Proven Successful by the World’s Most Profitable Companies, was noted by Dennis Stone, CEO of Overhead Door Corp, as "Essential reading… While many books cover the concepts of pricing, Pricing Done Right goes the additional step of applying the concepts in the real world." Tim’s textbook, Pricing Strategy: Setting Price Levels, Managing Price Discounts, & Establishing Price Structures, has been described by independent reviewers as “the most comprehensive pricing strategy book” on the market. As well as serving as the Academic Advisor to the Professional Pricing Society’s Certified Pricing Professional program, Tim is a member of the American Marketing Association and American Physical Society. He holds a BS in Physics and Chemistry from Southern Methodist University, a BA in Mathematics from Southern Methodist University, a PhD in Physical Chemistry from the University of Chicago, and an MBA with high honors in Strategy and Marketing from the University of Chicago GSB.