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Market orientation, service quality and business profitability: a conceptual model and empirical evidence

Market orientation, service quality and business profitability: a conceptual model and empirical... The authors explore the relationships among market orientation, service quality and business profitability. Based on an empirical study of Taiwan’s security brokerage service industry, the research results show that there are positive associations among the three constructs. More market‐oriented brokerage service firms seem to enjoy superior service quality perceptions and greater profitability. Further examinations reveal that market orientation has a stronger effect on service quality than on business profitability. Also, the service quality‐profitability linkage is stronger than the market orientation‐profitability linkage. The results suggest that service quality is an intermediate factor in the market orientation‐profitability relationship and is a better indicator of the effectiveness of a market‐oriented campaign than profitability measures. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Services Marketing Emerald Publishing

Market orientation, service quality and business profitability: a conceptual model and empirical evidence

Journal of Services Marketing , Volume 12 (4): 19 – Aug 1, 1998

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Publisher
Emerald Publishing
Copyright
Copyright © 1998 MCB UP Ltd. All rights reserved.
ISSN
0887-6045
DOI
10.1108/08876049810226937
Publisher site
See Article on Publisher Site

Abstract

The authors explore the relationships among market orientation, service quality and business profitability. Based on an empirical study of Taiwan’s security brokerage service industry, the research results show that there are positive associations among the three constructs. More market‐oriented brokerage service firms seem to enjoy superior service quality perceptions and greater profitability. Further examinations reveal that market orientation has a stronger effect on service quality than on business profitability. Also, the service quality‐profitability linkage is stronger than the market orientation‐profitability linkage. The results suggest that service quality is an intermediate factor in the market orientation‐profitability relationship and is a better indicator of the effectiveness of a market‐oriented campaign than profitability measures.

Journal

Journal of Services MarketingEmerald Publishing

Published: Aug 1, 1998

Keywords: Competitive advantage; Market orientation; Profitability; Service quality; Services marketing; Stockbrokers

References