For class I got a paper: David Vaughn
Introduction
The purpose of the Stock market in some ways may be to spread wealth. The owners of
large corporations place their worth on the market and in return, interested parties buy the share
or value at a price. That money is then taken by a corporation to then be re-invested to make
more money creating a cycle. This cycle is a part of the stock exchange market, a very large and
multi-faceted part of the economy. One that too many may compromise most or all of the major
parts of societies’ revenue. The purpose of this paper is to define a part the of business that may
be a part of my dissertation. I have chosen the Stock market and services.
Historically I wanted to see how these markets did ( (Hoopes, 2022)), and this reference
does not detail what, how, and which, stock investors do well in times of poor market downturn.
I used this reference to better context the differences in market decisions in terms of sales and
trades. The reference I used here was in connection to the “Recession” in 2008 and in 2020, but
to me are really just “terms” that describe the often-dismal markets connected to society.
Markets that do poorly based on consumer wants not matching the consumer income, then
having those same markets effect the overall quality or value of money. Increasing the Aggregate
and deepening the questionable debt create a have and have not scenario economically. In a
world based on Scarcity that is the norm. So, does making everything available to every person
help the market? Possibly but then the question will be who controls the market and its
resources. Let alone how will any services be valued.
Leading to the “invisible hand” theory by Adam smith, you can imagine the position
most of society would be in had the market not been regulated. Like the “invisible hand”
theorists believe it is merely a type of mindset and not actually possible to do. So, what makes
the market do well or poorly? It is infeasible for me to be able to determine that in this paper. I
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would much rather lay the issue out and discuss from my perspective what I think. To do that I
chose to use services that may have been sold on the stock market. Services are an intangible
good making this good to discuss.
Financial Services
Beginning first with this (Ferber, 1958)a source I came across looking for documentation
of services being sold through the stock market. Instead, I found a historical reference that
detailed research done about the “Stock recommendation” service. This study describes the
offerings of four major companies in that industry. Listing them as; Brookmire investors service,
Standard and poor’s, United business service, and Value line. *Standard and poor to me looks
like what is now called the S&P 500, the study however is based on research dating back to
1953.
Moving on, the study basically describes the effect of how these companies had a
correlation between prices and the sale of stocks or bonds. My study was intended to inform and
research the effectiveness of services that are sold on the Stock market. This reference however (
(Ferber, 1958) shows the effectiveness of providing a service and is not a market commodity.
The study itself was done by checking the price data of the recommended stock, and the date of
and after the recommendation was made. The recommendation also had to be made in favor of
the particular stock. The stocks” Recommended” did show to have a favorable increase in value
based on which stock the groups made. The study had to be measured based on which stocks
were in favor or chosen by the group because of the “erratic” direction the study may have gone.
So, the research was mainly done by stocks all the companies chose. (Ferber, 1958)
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Having seen the effect a service may provide we can look to current-day companies like
E*trader or Ameritrade that offer financial services. Or any type of company that may use a
similar type of structure. Banking institutions and credit unions, Servicers of loans that may deal
with and issue money at a cost. Those structures are of a different nature and may not provide
sufficient data. But can serve as examples of money and how they effect the stock market
Uber Services
While still trying to identify the service industry and give examples of differing service-
based organizations I chose Uber. A very large company that has changed over the past few
years. In a completely different sector but still offers a varying look at a service. Uber A
organization that has been around since the recession. (Uber technologies Inc. Calling a cab for
the taxi industry?, 2014) Uber began in 2009 and initially showed promise based on “it’s cost
structure” at that time in 2014 “, investors are still keen to see the business grow with sizable
investments so the company can continue to offer financial incentives to consumers (Uber
technologies Inc. Calling a cab for the taxi industry?, 2014).
In my own words Uber looked like a conglomerate and I am shocked seeing that it started
as a luxury vehicle car service. So how or why was this service better and spoken so highly of on
the market. With it being not much more than a Taxi service? I feel that Ubers main attraction at
the time was that many people did not understand what it offered. I also feel that this reference
provides some insight but does not provide enough detail on how a service thrives in the market.
I feel that although this case study at the time detailed issues within this corporation’s
sector. the information may have been biased based on the company and not the average
consumer. This Case study captures Ubers history at the point but cannot satisfy what I now call
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a “pure service”. However, I feel that elaborating upon high grossing industries may provide
more examples of service and stock market values and the casual relationship between them.
Sports Marketing Services
To enhance and define my study I looked for something that was not a physical good that
is connected to physical activity, similar to Uber or another Logistic type of operation. I found a
reference covering Sports Marketing and the Stock Market because I searched for one based on
current interests. Hypothetically Sports a multi-billion-dollar industry is leading in many markets
other than maybe energy sales and video games. ( (Eshghi, 2020) As with most studies or
research the data was tabulated based on various samples and qualitative data. Along with
corresponding graphs or charts further into the report.
But what I found most interesting was the use of Marketing terms that I may have
missed in some of my other references. Terms like “co-branding” are used in conjunction with a
research tool called the event study method. ” This statistical tool assesses the impact of the
availability of new information on stock returns and has been employed to measure the effect of
marketing actions – like co-branding, sponsorship, and channel expansion. (Eshghi, 2020)” The
itself studies the measured effect of announcing sponsorships and the release of information and
events good or bad that have effected stock prices.
I quoted this from the source (Eshghi, 2020)).) “With many firms actively pursuing
sponsorship to avoid the clutter connected with the traditional marketing communication.”
Leading me to believe that this market sells are like many other goods. Making the quality or
resource valuable only because of its popularity. Making it similar to ( (Ferber, 1958)) in how
the announcement of sponsorship-related endorsements effected stock, and how the four BUSINESS ORGANIZATION 5
a “pure service”. However, I feel that elaborating upon high grossing industries may provide
more examples of service and stock market values and the casual relationship between them.
Sports Marketing Services
To enhance and define my study I looked for something that was not a physical good that
is connected to physical activity, similar to Uber or another Logistic type of operation. I found a
reference covering Sports Marketing and the Stock Market because I searched for one based on
current interests. Hypothetically Sports a multi-billion-dollar industry is leading in many markets
other than maybe energy sales and video games. ( (Eshghi, 2020) As with most studies or
research the data was tabulated based on various samples and qualitative data. Along with
corresponding graphs or charts further into the report.
But what I found most interesting was the use of Marketing terms that I may have
missed in some of my other references. Terms like “co-branding” are used in conjunction with a
research tool called the event study method. ” This statistical tool assesses the impact of the
availability of new information on stock returns and has been employed to measure the effect of
marketing actions – like co-branding, sponsorship, and channel expansion. (Eshghi, 2020)” The
itself studies the measured effect of announcing sponsorships and the release of information and
events good or bad that have effected stock prices.
I quoted this from the source (Eshghi, 2020)).) “With many firms actively pursuing
sponsorship to avoid the clutter connected with the traditional marketing communication.”
Leading me to believe that this market sells are like many other goods. Making the quality or
resource valuable only because of its popularity. Making it similar to ( (Ferber, 1958)) in how
the announcement of sponsorship-related endorsements effected stock, and how the four
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companies in ( (Ferber, 1958)) effected prices of “recommended” stock. The study in (Eshghi,
2020) looks over the deviations and determines the differences in normal returns and those that
may be considered abnormal. The conclusions went as this from their study. “It is impossible to
understand the real effect of sponsorship activities in a partnership contract without considering
what happens from its start to its termination.” (Eshghi, 2020). Also summarizing that the
research states “that certain activities may have lead to any abnormal returns and it must be
studied”.
Amazon Food Services
Researching the connection between a service-based operation and tangible (physical)
“good” would interpret the paper’s main thesis. Which is to define or identify what sales on
Stock Market as a service. Much of my research uses supportive references that have, (A) shown
the connection between services and the stock market and (B) displayed that some services
require a type of “Good” or physical product to be useful. I can now discuss ( (Marketline,
2019), This (Marketline, 2019) shows that a poorly executed trip into a crowded market will lead
to a very quick and uneventful exit. I use this reference based on the parallels in what is expected
of a Supply Chain. Amazon is one of the premier operators in the logistics sector but faces very
heavy competition. “Even the greatest financial and logistical resources do not guarantee success
in the food delivery marketplace, we’re offering choice, filling gaps in what consumers want,
and being able to sustain low margins are key in building market share.” (Marketline, 2019)
Telecommunications Services.
“Low Margin” or as I put it; some services require a type of “Good” or physical product
to be useful. This in effect will be costly to other companies similar to Amazon I believe “Low
Margin”. Organizations like Uber who provides a service but draws heavily on resources. A very
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key and subtle point I wanted to bring to light. To be considered a “pure Service” on the stock
market. How should a service be valued? I come now to an invaluable tool, telecommunications
as a service.
An important utility for most of society, is telecommunications. This Commodity and
service are to me one of the most important aspects of today’s society. Despite
telecommunications’ versatility, it does not show the power or influence that should go along
with such an important service. (Marketline, The future of the telecoms industry: How to
navigate in a climate of intense disruption and change, 2018) also agrees, “Mobile phone usage,
internet traffic and data consumption has exploded and is only set to accelerate as far as most can
see, yet telecoms companies that provide the facility to do any of these things, are struggling to
grow at present (Marketline, The future of the telecoms industry: How to navigate in a climate of
intense disruption and change, 2018)
Exploring the versatility of this commodity/service does not explain why it does not do as
well on the stock market. My own belief is that current government programs has lead to less
revenue being generated based on “Free” services or discounts. Another reason could be the
constant crowding of this service market. With many new entrants into a market that is
constantly evolving. Making senior competitors lose their edge much sooner to competitors.
Marketing strategies like “technology Push” are being countered with simple strategies like
“emulation and copying” making every move costly. Many other reasons may be at hand for why
the telecommunications market is not as dominant as it should be. I feel that this service will at
some point make a comeback.
Consumer Business Services: MediaBUSINESS ORGANIZATION 7
key and subtle point I wanted to bring to light. To be considered a “pure Service” on the stock
market. How should a service be valued? I come now to an invaluable tool, telecommunications
as a service.
An important utility for most of society, is telecommunications. This Commodity and
service are to me one of the most important aspects of today’s society. Despite
telecommunications’ versatility, it does not show the power or influence that should go along
with such an important service. (Marketline, The future of the telecoms industry: How to
navigate in a climate of intense disruption and change, 2018) also agrees, “Mobile phone usage,
internet traffic and data consumption has exploded and is only set to accelerate as far as most can
see, yet telecoms companies that provide the facility to do any of these things, are struggling to
grow at present (Marketline, The future of the telecoms industry: How to navigate in a climate of
intense disruption and change, 2018)
Exploring the versatility of this commodity/service does not explain why it does not do as
well on the stock market. My own belief is that current government programs has lead to less
revenue being generated based on “Free” services or discounts. Another reason could be the
constant crowding of this service market. With many new entrants into a market that is
constantly evolving. Making senior competitors lose their edge much sooner to competitors.
Marketing strategies like “technology Push” are being countered with simple strategies like
“emulation and copying” making every move costly. Many other reasons may be at hand for why
the telecommunications market is not as dominant as it should be. I feel that this service will at
some point make a comeback.
Consumer Business Services: Media
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My last source Industry profile North America Media. Consumer & Business service
industry, A huge sector reaching $460 billion in 2022. Such a large and competitive market I
chose to highlight only a few of the details within this industry profile. Highlights such as,” For
the media segments that serve end users, switching costs are usually minimal unless customers
are locked into a subscription contract. For industry players such as advertising agencies,
buyers purchase their services on a contractual basis, so switching can be costly for
customers, thus resulting in reduced rivalry” (profile, 2023). This key highlight is monstrous in
summing up One of the key elements in why some of the service industries don’t do well.
Especially telecommunications, this was a tremendous source and has basically solidified many
questions.
The purpose of the research question was to be able to see how services did on the
stock market. The question had become more complex in the answer but due to narrowing the
search to only a few sectors it became easier to see how different issues may have conflicted
with revenue. The Media sector, a business and consumer service is thriving, filled with “natural
competitors” that have to outdo one another using ingenuity and strong marketing. This Sector
can be defined with “advertising, broadcasting & cable TV, publishing, and movies &
entertainment markets” (profile, 2023). Each with their own segments or means of conduct
making this a very deep and interactive industry.
As I stated earlier in this report, one of the questions was to find “Who did do
well in this Market?” I have found the leaders in this very lucrative and competitive industry.
Separating them through segments and listing them as; Advertising: Interpublic Group of
Companies, Inc. (IPG) and Publicis Groupe SA (Publicis), Brodcasting ad Cable tv: “T&T is
an American multinational conglomerate holding company and the world’s largest
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communications company. It became a leading player in the US broadcasting and cable TV
market after it completed its acquisition of Direct TV, and Comcast Corporation is one of the
largest broadcasting and cable television companies in the world by revenue”, Publishing: News
Corporation (News Corp) and Bertelsmann, and finally Movies and entertainment: The Walt
Disney Company.
Conclusion
This was a very elaborate study for me. One that I hope readers gain some insight from,
with some thought as to whether or not the question was answered. I said no, it varied why
anything worked for services. But I believe that readers will draw some conclusions from
reading this. Making this a good report because it may develop greater research questions about
“How a good service operates on the Stock Market?” and the value of a “Pure Service” on the
Stock Market example being something like insurance.
References
Eshghi, K. (2020). The impact of sports Sponsorship Announcements on the Stock Market
Returns A systemeatic literature review. International journal of sports management
21(4), 347-395.
Ferber, R. (1958). Short-Run Effects of Stock Market Services on Stock prices. Journal of
Finance (Wiley-Blackwell),13(1), 80-95.
Hoopes, J. L. (2022). Who sells During a Crash? Evidence from Tax Return Data On Daily Sales
of Stock . Economic Journal 132(641), 299-325.