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We examine the relative roles of marketing actions and product quality in determining commercial success. Using the motion picture context, in which product quality is difficult for consumers to anticipate and information on product success is available for different points in time, we model the effects of studio actions and movie quality on a movie's sales(More)
MSI working papers are distributed for the benefit of MSI corporate and academic members and the general public. Reports are not to be reproduced or published in any form or by any means, electronic or mechanical, without written permission. Report Summary Over the past decade, 22% of Fortune 500 firms—acting on the assumption that structuring divisions(More)
Few studies address the marketing budgeting problems of platform firms operating in two-sided markets with cross-market network effects, such that demand from one customer group in the platform influences the demand from the other customer group. Yet such firms (e.g., newspapers whose customers are both subscribers and advertisers) are prevalent in the(More)
When deciding about changes in levels of multiple marketing investments aimed at improving profits, managers need to know whether they are on the uphill side or the downhill side of the profit function with respect to each investment variable. Spending errors made by an uphill-located firm that believes that it is a downhill-located firm can have serious(More)
Firms' spending on R&D, advertising, and inventory holding affect firm performance, which in turn affects future spending in each of these three areas. Effective allocation of resources across R&D, advertising, and inventory holding is challenging since an understanding of their dynamic interrelationships is necessary. Past research has not examined these(More)
Whenever a recession occurs, there is a heated dialog among marketing academics and practitioners about the appropriate levels of marketing spending. In this article, the authors investigate whether firms should spend more on research and development (R&D) and advertising in recessions. They propose that the effects of changes in firms' R&D and advertising(More)
The importance of optimal marketing communications mix decisions is well-recognized by both marketing scholars and practitioners. A significant volume of work has addressed the problem of dynamic marketing mix optimization assuming constant effectiveness of marketing instruments. However, the effectiveness of marketing communications varies over time for a(More)
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