Seminar （Dept. of Marketing）

Theme：Prerelease Dynamic Advertising Adjustment and New Product Performance: Role of Customer and Investor Sentiment

Speaker：Peng Zhang（The University of Hong Kong）

Time：2021-06-24 10:00

Address：Room 1007, Mingde Business Building

Language：Chinese/English

Abstract：

This study investigates whether and how new product managers adjust their prerelease advertising deployments (both strategically and tactically) in response to customer and investor sentiment. Moreover, it examines the differential effects of such advertising adjustments in terms of new product sales and firm value. A three-step modeling analysis, comprised of panel vector autoregression model, Bayesian vector autoregression model, and Bayesian hierarchical model, shows that managers tend to increase both digital and traditional advertising expenditures for both new product promotional and brand marketing campaigns in response to the increased positivity of customer sentiment. However, they only increase traditional advertising expenditures for the brand marketing campaign in response to the increased investor bullish sentiment. Eventually, traditional advertising adjustments of new product promotional campaign in response to customer sentiment significantly and positively drive short term new product sales. Traditional advertising adjustments of both new product promotional and brand marketing campaigns in response to customer sentiment significantly and positively affect long term firm value.

Short biography：

Peng Zhang is an assistant professor at the University of Hong Kong. His research interests include digital advertising, innovation, and multichannel marketing.