Hype can hurt stock values

Published by on november 20, 2007 at 10:55 f m

Apple did it with iPhone, Boeing did it with Dreamliner. Promises means taking out money from your “brand bank” before you got them.

CEOs, often dismissive of marketing, are discovering a dangerous reality: aggressive marketing and brand-building can boost stock prices by raising customer and investor expectations. But the penalties for not delivering on marketing promises are fast becoming as significant as not meeting quarterly earnings targets. John Quelch, professor, Harvard

Thanks to the Swedish blog Mine goes to eleven.