The commercial cycle from the viewpoint of operant behavioral economics: effects of price discounts on revenues received from services

Journal of Organizational Behavior Management

2019

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This paper reveals the mutual relationship between a firm's marketing behavior and its financial consequences. With panel data from publicly traded companies covering 17 years, we obtained the total expenditures in marketing of each company to represent marketing behavior and five financial outcomes, depicting the reinforcers. Each metric was composed of frequency, magnitude, and delay dimensions. The results show mutual effects between investments in marketing activities (aggregate product of interlocking behavioral contingencies of the firm) and the firm's financial reinforcements (consequences of this product), thus corroborating the existence of metacontingencies in the marketing to finance relationship and undermatching in the finance to marketing relationship.

Section: Metacontingency and Marketing Behavior At The Firm Levelmentioning

confidence: 99%

Section: Metacontingency and Marketing Behavior At The Firm Levelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Marketing Firm as a Metacontingency:Revealing the Mutual Relationships between Marketing and Finance

Journal of Organizational Behavior Management

2019

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“…The authors propose resorting to the theories of operant behavioral economics (Foxall, 2016; Hursh & Roma, 2016). In this approach, the contexts work as discriminative (versus aversive) stimuli that promote (vs. inhibit) the circumstances where an organizational response generates reinforcing or gains‐making (vs. punishing or loss‐making) financial consequences for the firm (Porto, 2016). In this sense, the marketing investments are organizational responses representing resource allocation choices by company managers and are thus contingent on the context (Porto & Foxall, 2019).…”

Section: Introductionmentioning

confidence: 99%

The marketing‐finance interface and national well‐being: An operant behavioral economics analysis

2022

Manage Decis Econ

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The research ascertains which countries' well‐being metrics moderate the effects of marketing investments on corporate financial outcomes. We applied generalized estimating equations to firms in panel data from 131 countries covering 18 years. The results show that marketing investments raise market share regardless of country context, a global pattern. However, their effects are greater when considering economic growth. The impact of marketing on profitability and the companies' value increases when the country improves income distribution. The countries' developments generate higher financial outcomes, regardless of marketing investments. We highlight firsthand the global marketing–finance interface in its macro‐environment, using operant behavioral economics.

“…The possible functional arrangements of social systems include relationships between the firm and its environment, the commercial cycles between firms, and relationships between the product of organizational parts and their consequences, such as the effect of marketing on transactions and on financial returns (Glenn & Malott, ; Porto, ; Zagury Tourinho & Vichi, ). The marketing budget represents the total marketing behavior executed by a company.…”

Section: Introductionmentioning

confidence: 99%

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

2019

Manage Decis Econ

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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.