Posts by: Tim J. Smith, PhD
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?
MorePigs Talking on “The ‘Free’ Model”, a take on Wiglaf Journal emerging media editor David Dalka on Dear Facebook, Please Return Our…
More“No sensible person would claim that [quantification] can tell the whole story.” Angus Maddison, professor at the University of Groningen and authority…
MoreOur 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.
MoreThe 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.
MoreSt. Nicholas Day is coming …. anděl nebo čert? Google came from nowhere to being a global standard in just 10 years.…
MoreIn 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.
MoreWiglaf Journal emerging media editor David Dalka just capped off a busy month! David spoke on a panel, “Selling Search to the…
MoreNowhere 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.
More“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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