Recent discussions in academic literature and the business press often paint an unflattering picture of the contributions of chief marketing officers (CMOs) to the financial value of their firms. Some even suggest that CMOs, despite being the marketing leaders in firms, have little or no effect on firm performance. However, formal empirical research on the impact of CMOs on financial performance is scarce. This article presents conceptual arguments and empirical evidence about this controversial issue. The authors suggest that CMOs are far from irrelevant to the financial performance of firms. However, the impact of CMOs on financial performance is highly contingent on the managerial discretion available to them. Focusing on the role of customer power in limiting the managerial discretion available to CMOs, this study identifies individual and firm-specific conditions in which CMOs contribute more or less to firm value. Analyses of abnormal stock returns associated with the appointment of CMOs provide support for the hypothesized effects of customer power and managerial discretion.

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Although firms are increasingly launching branded mobile apps, an understanding of their influence on firm value remains elusive. Using stock market returns to assess firm value, the authors investigate the impact of branded mobile app announcements on such value. Moreover, recognizing that mobile apps generate various touchpoints in the customer journey, the authors also investigate how an app's design shifts the effects of mobile apps on firm value. In particular, they investigate effects from whether an app emphasizes features related to peer-to-peer interactions about the brand, personal-oriented interactions between a customer and the brand, or the purchase phase itself. They find that the launch of a mobile app increases firm value and that the features emphasized in app design play an important role in such value creation. The study offers important implications regarding the accountability of branded mobile apps and provides direction for marketing theory and practice.

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