Financial Markets Research in Marketing

Not too long ago the use of financial market data was viewed as outside the area of marketing and the interactions of marketing with the financial markets were little studied. Increasingly marketers are better appreciating the benefits of understanding how financial market data can be used to assess the value implications of marketing constructs and studying the effects of marketing variables on the financial markets. Marketing does not have a long track record of working with the financial markets theory and methods; work in this area is still evolving and, indeed, is in a state of flux. We focus on three reoccurring issues in this research domain: i) the use of VAR modeling in identifying financial market anomalies; ii) the limitations to working with levels models in valuation analyses; andiii) working with Tobin's Q as opposed to the stock return metric