The Effect of a Market Orientation on Business Profitability

1990/10/01 by John C. Narver, Stanley F. Slater · 31 citations
Economics, Econometrics and Finance · Decision Sciences · #Firm Innovation and Growth #Innovation Diffusion and Forecasting

paper · doi:10.1177/002224299005400403

Abstract

Marketing academicians and practitioners have been observing for more than three decades that business performance is affected by market orientation, yet to date there has been no valid measure of a market orientation and hence no systematic analysis of its effect on a business's performance. The authors report the development of a valid measure of market orientation and analyze its effect on a business's profitability. Using a sample of 140 business units consisting of commodity products businesses and noncommodity businesses, they find a substantial positive effect of a market orientation on the profitability of both types of businesses.

Citations

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• A Paradigm for Developing Better Measures of Marketing Constructs
• Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence
• Market Orientation: The Construct, Research Propositions, and Managerial Implications

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Related

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