 Executives’ financial experience and myopic marketing management: A myopic loss-aversion perspectiveLeilei Gu Journal of Business Research, 2023, vol. 157, issue C Abstract: This study investigates how executives’ financial experience (EFE) impacts myopic marketing management (MMM) from a myopic loss aversion (MLA) perspective and ways to mitigate the strategic bias induced by personal cognitive bias. It discovers that executives with financial sector working experience and educational experience are positively associated with a propensity toward MLA, which positively impacts MMM. By introducing compensation incentives, capital market, and performance pressures as moderators, this study reveals positive moderating impacts and identifies the theoretical mechanism of MLA. Finally, it explores debiasing strategies and finds that the myopic marketing strategy caused by the MLA from executives with financial experience, can be corrected by equity incentives, the top management team’s marketing power, and marketing capabilities. These findings contribute to the current literature on formulating marketing strategies and MMM. They also provide expanded implications from the MLA perspective while integrating behavioral theory into marketing strategies and offer some managerial suggestions. Keywords: Myopic marketing management; Executives’ financial experience; Myopic loss aversion (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:157:y:2023:i:c:s0148296322010529 DOI: 10.1016/j.jbusres.2022.113587 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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