In F1, automakers gain more from high R&D and low advertising

https://www.automotiveworld.com/articles/in-f1-automakers-gain-more-from-high-rd-and-low-advertising/

Participants

  • Yvonne van Everdingen
    Role: Faculty
    Reference type: Quoted

Media outlets

  • Automotive World (Online)

Description

Yvonne van Everdingen, Associate Professor of Marketing at the Rotterdam School of Management, has been mentioned in an article. The article discusses the relevance of the old adage for the contemporary auto industry. Research-intense car manufacturers have more to gain from competing in the F1 championship than advertising-intense car manufacturers. She states that ''Some car manufacturers choose to compete in F1 with their own teams and gear instead of just sponsoring, as we see in sports such as motorbike racing, cycling, and skiing. Brands that compete in F1, such as Daimler and Honda, and invest at least €3.8 billion annually in research and development do better in terms of innovation performance than other manufacturers such as Fiat and Renault that invest less. These findings can guide sports gear manufacturers to assess the potential outcomes of competing and guide them when allocating budgets between competing in sports competitions, R&D, and advertising.''

Yvonne van Everdingen, Associate Professor of Marketing at the Rotterdam School of Management