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Why do B2B Firms use B2C Advertising Channels?

Do people really care whether the aircraft they are flying is manufactured by Boeing or Airbus? The type of aircraft is not even a criterion listed while choosing your flights on Orbitz or other flight booking websites. Then why does Boeing (NYSE:BA) spend so much money on television advertising?

Before you read any further let me admit that I don't know why! But I can certainly speculate. One of the possible reasons is that it creates awareness about the firm among the individual investors. Now that just raises more question. For example, why should firms care about the type of investors?

Grullon, Kanatas, and Weston (2004) proposed that advertising gets more individual investors who increase the stock's liquidity levelthe ease of buying and selling the stock. We use a similar argument and show that individual investors also reduce liquidity riskthe changes in the liquidity level. There seems to be some benefit of having individual investors around. As both these papers show, product advertising can be a way to get the word out there among the individuals.

I thought of writing this today because I came across the following large display near Bugis MRT station in Singapore. Why would Malaysia Smelting Corp worry about educating people that their car is made up of tin? (Earlier this year they got listed on the Singapore Exchange.)

Large display advertising near busy Bugis MRT in Singapore


  1. I don`t speak on many sites that I come across but I felt I couldn’t pass up the opportunity with this one. Excellent post. I can only imagine what you will be writing in the future.

    Marketplace B2B

  2. Awesome write up! You seem to have great knowledge and grip over this industry.

    Love reading your blog! Keep the Good Work.

    B2B Company


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