An Analysis of the Wealth Effects of Green Marketing Strategies

Mathur, Lynette Knowles; Mathur, Ike

doi:10.1016/s0148-2963(99)00032-6

Cited by 150 publications

(109 citation statements)

References 21 publications

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“…The event date 0 of these articles is the date of the earliest/first appearance of the news report on LexisNexis (cf. e.g., Mathur and Mathur 2000). We conducted this search at two points in time (September-December 2010 and December 2015-April 2016 for an update of our dataset).…”

Section: Samplementioning

confidence: 99%

Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value

Beckers¹,

Doorn

Verhoef

2017

J. of the Acad. Mark. Sci.

232

209

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In today's connected world, customer engagement behaviors are very important. Many companies launch initiatives to stimulate customer engagement. However, despite evidence that customer engagement behavior also matters to shareholders, academic research on the firm value consequences of customer engagement campaigns is limited. This study is the first to investigate the value-related consequences of firm-initiated customer engagement behaviors, using shareholder evaluations of the public announcements of such initiatives. We find that companies' customer engagement initiatives, on average, decrease market value, which is likely because the shareholders are sensitive to the risk of these initiatives backfiring. Nevertheless, initiatives that stimulate word-of-mouth are viewed less negatively than initiatives that solicit customer feedback, as are initiatives that are supported by social media. Companies that operate in a competitive environment or do not advertise much can create value by stimulating customer engagement, while companies with a strong corporate reputation are likely to not benefit from it.

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Section: Samplementioning

confidence: 99%

Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value

Beckers¹,

Doorn

Verhoef

2017

J. of the Acad. Mark. Sci.

232

209

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“…Some research suggests that such investments may be appropriate only if they offer real gains for the firm (Siegel, 2009), and other scholars warn that sustainability initiatives can increase financial risk and uncertainty while reducing corporate value (Kiernan, 2007). These views echo the conventional economic wisdom that good environmental facilities hinder firms' competitiveness and financial performance (Kiernan, 2007;Mathur & Mathur, 2000;Walley & Whitehead, 1994). In response, we analyze in detail whether, in a financially difficult context, ESM benefits the firm or instead creates costs that harm its corporate financial value.…”

Section: Introductionmentioning

confidence: 86%

“…Instead, economic investments in environmental and social practices seemingly could have negative impacts on a firm's financial bottom line (Kiernan, 2007;Marcus & Fremeth, 2009;Mathur & Mathur, 2000;Walley & Whitehead, 1994). This claim appears especially pertinent for investments by SMEs (Hillary, 2004;Simpson et al, 2004).…”

Section: Environmental Challenges: Salience In the Corporate Responsimentioning

confidence: 99%

Risk and return characteristics of environmentally and socially responsible firms in Spain during a financial downturn: 2008–2011

Ruíz-Palomino

Rubio

Martínez-Cañas

2015

SAJBM

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The onset of the global financial crisis in 2008 undermined trust in financial markets, with immediate damages to businesses and enduring negative effects for numerous national economies. The situation also has endangered progress in terms of investments in environmental and social management (ESM) issues, because managers may be more likely to embrace the misguided notion that such investments represent a non-returnable costs that will hinder firms' financial performance. Yet ESM is needed now more than ever, because "doing good and doing well" messages are highly appreciated by stakeholders and can substantially improve a firm's competitiveness. This article analyzes the performance of the Spanish FTSE4Good IBEX index, compared with that of the Spanish IBEX 35 index, during the financial crisis and reveals slightly better performance for the former. Thus, considering the difficult financial context, indicators of good environmental and social performance, among other factors, might have positive effects on stock index performance. The findings offer some key implications for managerial practice.

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“…Most consumers still take factors such as price point and quality as the key criteria in their buying decisions, leading to purchases of products that are not eco-friendly (Ginsberg & Bloom, 2004). Advertising policies for many eco-friendly products have been erratic at best (Kärnä, Juslin, Ahoven, & Hansen, 2001) and this has bred suspicion and doubt in the minds of consumers (Mathur & Mathur, 2000). Consumers who harbor doubts towards commercials for green products are not likely to pay for green products (Laroche et al, 2001;Crane, 2000).…”

Section: Green Productmentioning

confidence: 99%