Effects of market orientation, innovation strategies and value-based pricing on market performance

Abstract

PurposeThis study aims to propose and test a theoretical model that contemplates antecedent constructs of organizational performance, as well as the interaction among them.Design/methodology/approachA survey was conducted with 151 Brazilian exclusive stores in the planned furniture segment. The data analysis was performed using two statistical techniques, focused on hierarchical regression and mediation and moderation tests.FindingsAmong the main results of the survey are the direct and significant effects of value-based pricing and innovation strategies and the indirect effect of market orientation on market performance. As for moderation, the authors identified that profitability moderates the relationship between value-based pricing and market performance, and the degree of sales projection moderates the relationship between market orientation and market performance.Originality/valueThe insertion of value-based pricing as a variable in quantitative analysis of market performance meets the lack of academic research. When the constructs are combined or interacted with each other, they have a stronger and more significant effect on performance. In addition, this work proposes two moderating variables that can interfere in the relationship between the analyzed constructs (profitability and sales projection). It was identified that the relationships between the constructs and that the orientation towards the market (despite not directly impacting market performance) interfere with the relationship based on mediation of variable innovation strategies and value-based pricing.