News Update on Profitability Research: June – 2019

The Effect of a Market Orientation on Business Profitability

Marketing academicians and practitioners are observant for over 3 decades that business performance is tormented by market orientation, nevertheless so far there has been no valid live of a market orientation and thence no systematic analysis of its result on a business’s performance. The authors report the event of a legitimate live of market orientation and analyze its result on a business’s gain. employing a sample of a hundred and forty business units consisting of trade goods merchandise businesses and noncommodity businesses, they realize a considerable positive result of a market orientation on the gain of each forms of businesses. [1]

Customer Satisfaction, Market Share, and Profitability: Findings from Sweden

Are there economic advantages to rising client satisfaction? several companies that are annoyed in their efforts to enhance quality and customer satisfaction are starting to question the link between customer satisfaction and economic returns. The authors investigate the character and strength of this link. They discuss however expectations, quality, and value ought to have an effect on client satisfaction and why customer satisfaction, in turn, ought to have an effect on gain; this leads to a collection of hypotheses that are tested employing a national client satisfaction index and ancient accounting measures of economic returns, like come back on investment. The findings support a positive impact of quality on client satisfaction, and, in turn, profitability. The authors demonstrate the economic advantages of accelerating client satisfaction victimization each AN empirical forecast and a brand new analytical model. additionally, they discuss why increasing market share really may cause lower client satisfaction and supply preliminary empirical support for this hypothesis. Finally, 2 new findings emerge: initial, the market’s expectations of the standard of a firm’s output completely affects customers’ overall satisfaction with the firm; and second, these expectations are for the most part rational, albeit with atiny low adaptational part. [2]

Diversification strategy and profitability

Prior work has shown Associate in Nursing association between diversification strategy and profitableness. This paper replicates that association exploitation newer and complete information and goes on to research the sources of the association. Theoretical arguments area unit advanced that predict the association which is able to stay once the consequences of varied business profitableness area unit removed. Empirical tests verify this prediction and allow the discrimination between the consequences of business and diversification strategy on profitableness. [3]

Reducing pesticide use while preserving crop productivity and profitability on arable farms

Achieving property crop production whereas feeding AN increasing world population is one among the foremost formidable challenges of this century1. Meeting this challenge can essentially imply a forceful reduction of adverse environmental effects arising from agricultural activities2. The reduction of chemical use is one among the important drivers to preserve the surroundings and human health. chemical use might be reduced through the adoption of latest production strategies3,4,5; however, whether or not substantial reductions of chemical use are attainable while not impacting crop productivity and profitableness is debatable6,7,8,9,10,11,12,13,14,15,16,17. Here, we tend to incontestable  that low chemical use seldom decreases productivity and profitableness in cultivable farms. we tend to analysed the potential conflicts between chemical use and productivity or profitableness with knowledge from 946 non-organic cultivable business farms showing contrastive levels of pesticide use and covering a good vary of production things in France. we tend to didn’t find any conflict between low chemical use and each high productivity and high profitableness in seventy seven of the farms. we tend to calculable that total chemical use might be reduced by forty second with none negative effects on each productivity and profitableness in fifty nine of farms from our national network. This corresponded to a mean reduction of thirty seven, forty seven and hour of chemical, antifungal and pesticide use, severally. The potential for reducing chemical use appeared higher in farms with presently high pesticide use than in farms with low pesticide use. Our results demonstrate that chemical reduction is already accessible to farmers in most production things. this is able to imply profound changes in market organization and trade gap. [4]

Measurement of Pig Production Profitability in Zangon Kataf and Jema’a Local Government Areas of Kaduna State, Nigeria

The study geared toward mensuration the gain of even-toed ungulate farmers, yet as deciding the influence of the farmers’ socio-economic characteristics on their output. it had been conducted in Kaduna State, African country exploitation structured form administered to a hundred and twenty even-toed ungulate farmers. The respondents were willy-nilly selected  from Jema’a and Zangon Kataf regime Areas and data regarding objectives of the study was obtained. Descriptive statistics, multiple correlation model, t-test of significance and internet farm financial gain were wont to analyse the info. The study unconcealed that even-toed ungulate production within the study space preponderantly distributed by ladies of active age. gain ratios showed that even-toed ungulate production was profitable with a come back per Nigerian monetary unit endowed (38kobo), margin of profit (27%), gross magnitude relation (73%) and a internet farm financial gain (N three,178.55 per pig). the price of feed, purchase of piglets and family labour constitutes the main variable price things (81.96%), with a median sale of N11, 624.77 and average total price of N8, 446.22The result additionally showed that even-toed ungulate production was influenced by socio economic characteristics: production expertise, social unit size, herd size, age and level of education were vital (P=.05 and .01). Z-test additionally unconcealed a big distinction (P=.01) between farmers’ prices and returns. High price of piglets, high price of feeds, happening of diseases and high shoat rate were the main constraints moon-faced by farmers. The study recommends that producers ought to be motor-assisted with monetary capital to be ready to effectively rear pigs and additionally expand the size of production. [5]


[1] Narver, J.C. and Slater, S.F., 1990. The effect of a market orientation on business profitability. Journal of marketing, 54(4), pp.20-35. (Web Link)

[2] Anderson, E.W., Fornell, C. and Lehmann, D.R., 1994. Customer satisfaction, market share, and profitability: Findings from Sweden. Journal of marketing, 58(3), pp.53-66. (Web Link)

[3] Rumelt, R.P., 1982. Diversification strategy and profitability. Strategic management journal, 3(4), pp.359-369. (Web Link)

[4] Reducing pesticide use while preserving crop productivity and profitability on arable farms

Martin Lechenet, Fabrice Dessaint, Guillaume Py, David Makowski & Nicolas Munier-Jolain

Nature Plants volume 3, Article number: 17008 (2017) (Web Link)

[5] Duniya, K. P., Akpoko, J. G., Oyakhilomen, O. and Nandi, J. A. (2013) “Measurement of Pig Production Profitability in Zangon Kataf and Jema’a Local Government Areas of Kaduna State, Nigeria”, Current Journal of Applied Science and Technology, 3(4), pp. 1455-1463. doi: 10.9734/BJAST/2014/4137. (Web Link)

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