Name: Bilal Shahid

Section: I
Instructor: Sana Azar

Market Orientation: The Construct, Research Propositions,

and Managerial Implications
Purpose of the study
This study is conducted by Kohli and Jaworski. The main aim was to recognize the effect of a
market orientation on clients, workers, and business execution, and the conditions under which
these impacts are liable to be either pretty much declared. The purpose was to offer a more exact
meaning of market orientation, and to distinguish activities managers may undertake to enhance
the market orientation of their organizations.

Research questions
1. What does the term "market/marketing orientation" mean to you? What kinds of things does a
market/marketing-oriented company do?
2. What organizational factors foster or discourage this orientation?
3. What are the positive consequences of this orientation? What are the negative consequences?
4. Can you think of business situations in which this orientation may not be very important?

Conceptual definition of Market orientation

Market orientation indicates to the way that an organization actualizes the marketing idea. It may
be characterized as the association wide era of market knowledge, or data on customers present
and future needs, scattering of that data crosswise over various departments, and association
wide responsiveness to it.
Operational definition of market orientation

Market orientation involves taking concrete actions in response to market intelligence. These
actions relate to targeting select market segments and designing new products and programs or
modifying existing ones to meet customer needs. It is important to emphasize that a market
orientation is not the exclusive responsibility of marketing departments, but rather is an
organization-wide mode of operation.
The component view of market orientation (generation, dissemination, and responsiveness to
market intelligence) makes it possible to diagnose an organization's level of market orientation,
pinpoint specific deficiencies, and design interventions tailored to the particular needs of an
organization.

Variables-types
1. Senior Management Factors: Exogenous/Latent
a. Communication- Action Gap Of The Top Management. (Observed)
b. Middle Managers' Ambiguity. (Observed)
c. Risk Aversion Of Top Management. (Observed)
d. Upward Mobility And Education Of Top Management. (Observed)
e. Top Management Attitude Toward Change. (Observed)
f. Marketing Managers' Ability To Win Trust Of Non-Marketing Managers.
(Observed)
g. Interdepartmental Conflict. (Observed)
2. Interdepartmental Dynamics: Exogenous/Latent
a. Interdepartmental Conflict. (Observed)
b. Interdepartmental Connectedness. (Observed)
c. Concern For Ideas Of Other Departments. (Observed)
3. Organizational Systems: Exogenous/Latent
a. Departmentalization. (Observed)
b. Formalization. (Observed)
c. Centralization. (Observed)
d. Market - Based Reward Systems. (Observed)
e. Acceptance Of Political Behavior. (Observed)
f. Interdepartmental Conflict. (Observed)
4. Market Orientation: Endogenous
5. Demand - Side Moderators: Moderating
6. Supply - Side Moderators: Moderating
7. Customer Responses: Endogenous
8. Business Performance: Endogenous
9. Employee Responses: Endogenous

Methodology of the study

Mainly through interviews
Sample Size

In-depth interviews were conducted with about 62 individuals from different citites of the
United States.

Sample respondent profile

Of the 62 individuals, 33 held marketing positions, 15 held non marketing positions, and
14 held senior management positions.

A total of 47 organizations were included.

The organization of 18 interviewees marketed consumer products, 26 marketed industrial

products, and 18 marketing service products.

Independent variable
Market orientation
Dependent variable
Customer satisfaction and repeat business
Esprit de corps, job satisfaction, and employee commitment
Business performance