Abstract
Research in market orientation has overlooked the importance of its impact on various aspects of marketing strategy, especially on distribution channel strategy. Using Kohli & Jaworski's framework of measuring market orientation (MO) and pesticide industry of Pakistan as a context, this article explores the relationship between various constructs of MO with channel strategy. This paper draws survey data from the pesticide industry in Pakistan. Given the low response rate, a norm in developing countries, bootstrapping technique is employed and tests are run. The results reveal that level MO has an impact on how channel strategies are formulated. Findings of the research indicate that higher level of MO is associated with selective channel strategy involving low intensity of distribution and higher channel control. The results also suggest that the right channel strategy helps an organization to create differentiation and to improve performance in a commodity market
Highlights
IntroductionIn the literature related to marketing, researchers argue that success of a firm depends upon the extent to which it adopts the marketing concept
The results suggest that the right channel strategy helps an organization to create differentiation and to improve performance in a commodity market
In the literature related to marketing, researchers argue that success of a firm depends upon the extent to which it adopts the marketing concept
Summary
In the literature related to marketing, researchers argue that success of a firm depends upon the extent to which it adopts the marketing concept A. Farrell & Oczkowski, 1997; Narver & Slater, 1990; Ngai & Ellis, 1998). Following Drucker’s (1954) introduction of this concept, the extant literature proposes that market orientation (MO), an operationalization of the marketing concept, has a positive impact upon the firm’s. Azhar performance (Kohli & Jaworski, 1990). Though the assertion is accepted in general, there still exists some equivocality in the results regarding the impact of MO on various performance measures, especially in the context of developing countries (Qu & Ennew, 2008; Shoham, Rose, & Kropp, 2005)
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