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Published in:
2015 | OriginalPaper | Chapter
“The Key Mediating Varibales Linking Marketing Strategy and Profitability: A Study of Indian Textile and Clothing Industry”
Author : M. Joseph Sirgy
Published in: Proceedings of the 1993 World Marketing Congress
Publisher: Springer International Publishing
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The authors argue that investment-intensity and gross margin rate act as mediating variables between marketing strategy elements and profitability. On the basis of multiple regression analysis, they develop results which go counter to the current theory that the effect of marketing strategy elements (e.g. product quality) on profitability is direct. They offer insights into the appropriateness of market share-building as a means of raising profitability in different situations and suggest the need for a trade off between market share building and maximising gross margin rate in order to achieve greater profitability.