New research could help investors make smarter decisions about marketing cuts

A tool that helps investors identify myopic marketing spending would help them protect their portfolios from negative long-term consequences.

Businesses are often tempted to cut their marketing budgets for the short-term savings it provides – but those cuts can cause problems in the long term. A new study my colleague Tarun Kushwaha and I published in The Journal of Marketing proposes a method for predicting whether these counterproductive cuts will take place up to a year in advance.