Top 6 – August 2012
Published August 1, 2012
According to Young & Rubicam’s BAV measures, the four pillars of brand value are Knowledge, Relevance, Esteem, and Differentiation. On which of these is your firm underperforming?
- Knowledgeable consumers armed with information from product reviews, existing customer’s opinions, and trial offers are eliminating asymmetric information between buyers and sellers found in the traditional markets and evolving into a segment of their own.
- “There is next to no evidence that corporate social responsibility (CSR) adds to a company’s bottom line”, Felix Oberholzer-Gee
- It once took years to build a national market. Today’s entrepreneurs [market an app] all around the world in less than a week.
- Three elements that parsimoniously construct trust are Ability, Benevolence, and Integrity.
- An analytical economic model states the optimal price of a product facing direct competition is PN = (α · XC · PC)/ (θ · XN), that is, at the price of its competitor adjusted for relative to the value difference between the product and its competing product.
- Trust implies risk taking.
About The Author
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.