Seminar (Dept. of Marketing)

Title: Executives’ financial experience and myopic marketing management: A myopic loss-aversion perspective

Speaker: Leilei Gu (Associate professor, Business School of CUFE)

Time: 10:00-11:30am, November 9th, (Wednesday),2022

Venue：Tencent Meeting & Room 706, Mingde Business Building

Language：Chinese/English

Abstract：

This study investigates how executives’ financial experience impacts myopic marketing management from a myopic loss aversion (MLA) perspective, and how to mitigate the strategic bias induced by personal cognitive bias. This study discovers that executives’ financial experience is positively associated with the propensity toward MLA, which positively impacts myopic marketing management. By introducing compensation incentives, capital market, and performance pressures as moderators, this study reveals positive moderating impacts and identifies the theoretical mechanism of MLA. The study also explores debiasing strategies and finds equity incentives, the top management team’s marketing power, and marketing capabilities can correct the myopic marketing strategy caused by the MLA from executives with financial experience. These findings not only contribute to current literature on formulating marketing strategies and myopic marketing management, but also provide expanded implications from the MLA perspective while integrating behavioral theory into marketing strategies. This work also offers some managerial suggestions.