 Product nutrition, innovation, advertising, and firm’s financial gainsZixia Cao and Ruiliang Yan Journal of Business Research, 2021, vol. 133, issue C, 13-22 Abstract: Improving product nutrition has become an increasingly important area of innovation in the food and beverage industry. However, the contribution made by a product’s nutritional quality to the firm’s bottom line has been little studied. To fill this gap, we first developed an analytical model to study the relationship between a product’s nutritional quality and the firm’s profit, and then investigated the role of package innovation and advertising in this relationship. The results show that a product’s nutritional quality has a concave relationship with the firm’s profit, and that the relationship is influenced positively by both package innovation and advertising. Finally, we empirically examined product nutrition across a wide range of product categories and corresponding firms’ profits over multiple years to test if the results derived from our analytical models hold for empirical data from real businesses. Furthermore, we empirically investigated how a new product’s nutritional quality impacts the firm’s stock return after the product’s introduction. Keywords: Product’s nutritional quality; Concave relationship; Package innovation; Advertising; Profit; Stock return (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:133:y:2021:i:c:p:13-22 DOI: 10.1016/j.jbusres.2021.04.039 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
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