The effect of global marketing decisions on firm performance
01 / 2008 - 12 / 2013
This PhD project focuses on the effect of global marketing decisions on firm performance. The first essay focuses on the effect of global brand portfolio rationalization on firm performance. Brand portfolio rationalization is the process whereby a firm compares its brand portfolio with the overall strategy, and decides in which brands to invest and which brands to delete. In most cases of global brand portfolio rationalization, local brands are deleted in order to invest in global brands. The purpose of this research is to develop a conceptual framework that identifies the various benefits and costs inherent to brand portfolio rationalization. This provides insights with respect to the main effect of the brand portfolio rationalization process on the performance of the manufacturing firm undertaking the brand portfolio rationalization. Further, several cross-sectional factors, such as firm characteristics, should be incorporated as moderating variables, to explain variation in performance outcomes between different manufacturers. The effect of brand portfolio rationalization on firm performance will be investigated using the event-study method. By using stock prices as a proxy for firm performance, one should be able to provide empirical evidence by quantifying the long-term performance implications of the brand portfolio rationalization process.