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| Volume 2, No. 2,
August
2003
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Back |
| Advertising
Intensity and R&D Intensity: Differences across Industries and
Their Impact on Firm's Performance |
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| Trina
Larsen Andras |
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Department of Marketing,
Drexel University, U.S.A. |
| Srini
S. Srinivasan |
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| Department of Marketing, Drexel University,
U.S.A. |
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| Abstract |
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To compete successfully
in the market place, organizations optimally utilize their inputs
and benchmark their key inputs and outputs against other successful
firms. Two of the key inputs that organizations should effectively
manage are marketing expenses and R&D expenses. In this research,
we investigate a) if these two inputs systematically vary across
consumer product and manufacturing product organizations, and
b) if these two factors have an impact on firm’s performance.
We find that consumer product organizations have higher advertising
intensity than manufacturing product organizations. However, manufacturing
product organizations have higher R&D intensity than consumer
product organizations. Findings of this research also reveal that
advertising intensity and R&D intensity are positively related
to firm profit margins. |
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Key words: marketing
expenditures; R&D expenditures; firm's performance
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| JEL
classification:
M30;M31;M37 |
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