An empirical study of marketing environment strategy and performance in the property market

• Main Author: Wu, Chih-Wen
• Published: University of Glasgow 2003
• Subjects: 332.63243; HF Commerce
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.513098

By adapting industrial organisation, resource based theories and PIMS database research, the study proposes the organisation-environment-strategy-performance (OESP) framework and a model of property marketing in the Taiwan property market. The thesis proposed and tested an integrative model of business performance incorporating the major determinants of business performance, internal and external environment, and competitive marketing strategy. The thesis proposed and tested hypothesised relationships among four external marketing environment dimensions, four internal marketing environment dimensions, seven marketing strategies dimensions and four performance variables. By focusing on both construct and tests of hypothesised relationships, the study aims to strengthen the empirical foundation of marketing strategy research. The research findings reported are based on a mail survey of 102 property marketing business managers. Separated and integrated models were developed, and the relationships presented in the research questions were tested using two-year panel survey and retrospective longitudinal study (year 2000-2001) of 102 firms in the Taiwan property industry. Pooled cross-sectional time series regression and multiple regress methods were employed to test the research hypotheses and exploratory propositions. In the separated model, internal environment variables (market orientation, product advantage and resource commitment) were not found to be statistically explanations of variance in business performance. Of the external environment variables, demand potential and technological change were found to be key explanatory factors of variance in business unit performance. Marketing strategy variables such as product positioning and sales force expenditures were found to be statistically significant explanatory factors of variance in business performance. Product-market scope strategy is affected by the product advantage and resource commitment while promotion element decision is affected by technical change and resource commitment. Distribution decision is determined by competitive intensity, customer orientation and prior performance. Product positioning is affected by the product advantage while strategic alliance is determined by market attractiveness and technical change pressure. No marketing environment and prior performance factors were found to affect sales force expenditures and pricing decisions. The substitute of competitors factor is found to be statistically significant explanatory power of variance in market orientation and resource commitment.