A Comparative Study on the Relationship among Extended Market Orientation (EMO), Refined Economic Value Added (REVA) and Return on Assets (ROA)

Subject Areas : Jounal of Marketing Management

Sh. Nayebzadeh ¹ , M. Moein Aldin ² , Z. Gheisary ³

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Received: 2013-08-31 Accepted : 2013-08-31 Published : 2013-08-31

Keywords: Extended Market Orientation, economic value added, Refined Economic Value Added, return on assets,

Abstract :

The concept of marketing means that the performance of each business unit starts with recognizing its customers and their needs. Every organization is responsible for not only producing and selling products and services, but also satisfying its customers; thus observing its customers’ needs and wants empower the organization t in its indented markets. In accordance to this statement, many researchers have tried their best to introduce some methods and models to make this concept more applicable. Regarding the fact that the success of many organizations depends on creating a substantive competitive privilege and the key to make such a privilege is offering superior value for costumers; concentration on customers, competitors and the other influencing factors as a determinant culture in the organization or in the form of solitary complex consisting of purposeful activities toward market under some concepts such as market-orientation and customization in practice have been used. The current research has studied the relationship between Extended Market Orientation and business performance. Therefore, the subjects of this research project were the stock exchange companies which produced consuming products and their economic and financial data of 2004 to 2008 were available. The main variables of this research project were: Extended Market Orientation (EMO), the criteria of business financial performance (Rate of Return Assets (ROA)) and the criteria of business economic performance (Refined Economic Value Added (REVA)). In this research project, statistical inference, parametric and nonparametric statistical methods, Spearman and Kendall correlation test have been used. In this research project, the data which were required for determining the business performance criteria have been extracted from financial accounts of the organizations and the required data to evaluate the extent of market orientation in the mentioned companies have been collected by use of s standardized questionnaire used in international researches. In order to assess the market orientation, the questionnaire besides a letter from the university has been sent to each company and after repeated follow-up, 23 questionnaires were returned. After collecting the required data and using them to analyze the hypotheses, the results showed there is a significance relationship between extended market-orientation and rate of return assets while extended market orientation has no correlation with adjusted value economic added.