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Walt Mossberg’s Reviews Can Make a Company Gain or Lose Millions in Profits

Jul 3 2008, 11:29am CDT | by , in News | Other Stuff

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Walt Mossberg’s Reviews Can Make a Company Gain or Lose Millions in Profits
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Joseph Johnson, an assistant professor at the University of Miami School of Business Administration has conducted a study that looks at the effect a good or bad review of an electronic item or gadget from Walt Mossberg of The Wall Street Journal has on a company.

According to the study there is a direct correlation between a company’s stock gains or losses and reviews of its products by Mossberg. According to the study is Mossberg gives an item a good review the company stock sees average gains of $500 million. If Mossberg gives an item a bad review the company stock loses an average of $200 million.

"When introducing new products, managers are often in a rush to market new products to beat out the competition. In doing so, they follow the logic of 'It's more important to be first than to be better,'" said co-author Professor Gerard Tellis from the USC Marshall School of Business. "This research proves that the successful business motto should be, 'It's better to be better than to be first."

Via University of Miami

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