The Effect of Advertising Slogan Changes on the Market Value of Firms

Lynette Knowles Mathur and Ike Mathur

A variety of factors motivate managers of firms to change advertising slogans. Principal among these factors is the desire to improve the financial performance of the firm, which should be viewed positively by investors, and should result in a higher market value of the firm.

The Effect of Advertising Slogan Changes on the Market Value of Firms

Lynette Knowles Mathur and Ike Mathur

In September 1993, Campbell announced a slogan change from the familiar, 67 year-old slogan 'M'm! M'm! Good!' to its new slogan 'Never Underestimate the Power of Soup.' The initial reactions to the Campbell slogan change were mixed. For example, Peter J. Harleman, executive vice president of the consulting firm Landor Associates, felt that the slogan change was a mistake and predicted that it would not last very long (Shapiro, 1993). On the other hand, Leo J. Shapiro and Associates chief...

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