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The purpose of this article is to provide an understanding of the methodology of action research, especially its use in a marketing context. A retrospective account of a market‐oriented action research project in which the author was involved is provided in the form of a summative evaluation of the methodology used. The status of research claims for action research in scholarly publications is discussed and found to be problematic. A hermeneutic case research pathway is recommended as a solution. Links between action research as methodology and internal marketing as strategy are made. A conclusion is reached that the basis of market‐oriented action research is “knowledge renewal”. This is achieved through an iterative process of action and learning, facilitated by the relationships formed between those involved.

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