Marketing firm performance: When does marketing lead to financial gains?

Rafael Barreiros Porto and Gordon Robert Foxall

Managerial and Decision Economics, 2020, vol. 41, issue 2, 191-202

Abstract: The research investigated whether economic context and prior financial reinforcement/punishment moderate the effectiveness of marketing behavior in generating gains for the firm. An experiment with a longitudinal design was conducted using 1,759 companies from 2000 to 2017. The results demonstrate that marketing is effective in gaining market share when the country's economy is growing. In contrast, it increases return on assets and Tobin's Q when the country's economy is in recession, this increase being maximized when the company was financially reinforced. The study helps explain the circumstances in which marketing activities boost firms' financial gains.

Date: 2020
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https://doi.org/10.1002/mde.3046

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:41:y:2020:i:2:p:191-202

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