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New products, sales promotions, and firm value: the case of the automobile industry
In the automobile industry, managers must demonstrate to CEOs and CFOs the impact of new product introductions on their firm's financial performance and stock market value. Yet these efforts are often hampered by the subjectivity of performance assessments and by the use of different time frames for evaluating performance impacts. In this study, the authors apply econometric methods to overcome these shortcomings. Using time-series analyses, they investigate the impact of new product introductions on top-line (revenue), bottom-line (income), and stock market performance. They also examine the impact of promotional incentives. The researchers focus on the "big six" manufacturers: DaimlerChrysler, Ford, General Motors, Honda, Nissan, and Toyota. Overall, new product introductions are found to have positive short-term and long-term impacts on the firm’s top-line, bottom-line, and stock market value. Moreover, the impact on stock market value increases over time. Over the total sample of six car makers and six product categories, new product introductions had a positive long-term impact on market capitalization for 81% of all brands. In terms of incentive programs, the researchers find that in the short-term, top-line, bottom-line, and stock market performance all improve. However, these effects are short-lived for all but top-line performance. Therefore, although the repeated use of incentives seems to maintain and even grow a firm's revenues, profit margins are eroded and bottom-line performance and stock market value suffer in the long run.Hardcopy
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| IM1700517 | PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | The American Marketing Association., |
|---|---|
| Edisi | - |
| Subjek | Marketing management Financial performance Econometrics Automobile industry Incentives Time series Stock prices Multinational corporations studies Product introduction |
| ISBN/ISSN | - |
| Klasifikasi | - |
| Deskripsi Fisik | - |
| Info Detail Spesifik | - |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas | Tidak Ada Data |