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.
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1 August 1998
Research Article|
August 01 1998
Market orientation, service quality and business profitability: a conceptual model and empirical evidence
Tung‐Zong Chang;
Tung‐Zong Chang
Assistant Professor, School of Business, Metropolitan State College of Denver, USA
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Su‐Jane Chen
Su‐Jane Chen
Assistant Professor, College of Business, University of Winsconsin‐Eau Claire, Woodbury, Wisconsin, USA
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Publisher: Emerald Publishing
Online ISSN: 2054-1651
Print ISSN: 0887-6045
© MCB UP Limited
1998
Journal of Services Marketing (1998) 12 (4): 246–264.
Citation
Chang T, Chen S (1998), "Market orientation, service quality and business profitability: a conceptual model and empirical evidence". Journal of Services Marketing, Vol. 12 No. 4 pp. 246–264, doi: https://doi.org/10.1108/08876049810226937
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