Proactive Product Strategy and Marketing Profitability: An Empirical Investigation of Furniture and Decorative Product Businesses in Thailand
Keywords:
Proactive Product Strategy, Marketing Advantage, Marketing ProfitabilityAbstract
Proactive product strategy has been accepted as one of the key capabilities of marketing profitability. The purpose of this research was to investigate the relationships among the dimensions of the proactive product strategy and marketing profitability. The population and sample were the furniture and decorative product businesses in Thailand, totaling 156 firms. The period of data collection was June to August 2016.
The regression analysis indicated that the dimensions of proactive product strategy consist of new product development implementation, radical product innovation emphasis, original product design focus, and excellent product identity capability have a significant positive influence on marketing advantage. Moreover, marketing advantage has a strong and positive effect on marketing profitability. Finally, this research generates suggestions for marketing executive utilized proactive product strategy to manage the marketing business strategy, and to be the effective guidelines on the marketing operation of furniture and decorative product businesses in Thailand as well as the recommendation for further research in the future.
References
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market orientations for new product program performance. Journal of Product Innovation Management,
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Strategic management journal, 34(4), 445-463.
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Innovation Management, 14(4), 393-404.
Dekimpe, M. G. & Hanssens, D. M. (1999). Sustained spending and persistent response: A new look at long-
term marketing profitability. Journal of Marketing Research, 397-412.
Dibrell, C., Davis, P. S., & Craig, J, (2008).Fueling innovation through informationtechnology in SMEs.
Journal of Small Business Management,46(2), 203–218.
Griffith, D. A. & Rubera, G. (2014). A cross-cultural investigation of new product strategies for technological
and design innovations. Journal of International Marketing, 22(1), 5-20.
Hair, J. F. Jr., Black, W. C., Babin B. J., Anderson, R. E., & Tatham, R. L. (2010). Multivariate data analysis,
(6thed.). New Jersey: Pearson Education International.
Jangalova, M. (2012). Business excellence evaluation as reaction on changes in global business environment.
Procedi- Social and Behavioral Sciences, 62(2), 1056-1060.
Jumpapang, M., Ussahawanitchakit, P., & Jhundra-indra, P. (2013). Value creation strategy and marketing
performance of food businesses in Thailand: An empirical investigation of the antecedents and
consequences. Journal of International Finance and Economics, 13(3), 5-34.
Keller, K. L. (1998). Branding perspectives on social marketing. NA-Advances in Consumer Research, 25(19), 299-302.
Kotler, P. & Keller, K. (2012). Marketing management (14th ed.). Prentice Hall: Pearson International Education.
Kumar, M. & Noble, C. H. (2016). Beyond form and function: why do consumers value product design?
Journal of Business Research, 69(2), 613-620.
Lamore, P. R., Berkowitz, D., & Farrington, P. A. (2013). Proactive/responsive market orientation and
and development integration. Journal of Product Innovation Management, 30(4), 695-711.
Landwehr, J. R. & Herrmann, A. (2015). Marketing and product design: a rocky love affair. GfK Marketing
Intelligence Review, 7(2), 8-15.
Lee, A. S. (2014). The investigation into the influence of the features of furniture product design on consumers’
perceived value by fuzzy semantics. South African Journal of Business Management, 45(1), 79-93.
Lee, C. H., Tseng, C. L., & Chu, K. K. (2016). Exploring strategy fit of competition on foreign enterprise and
brand strategy. The international journal of organizational innovation, 8(3), 99-111.
Li, L., Qian, G., & Qian, Z. (2014). Inconsistencies in international product strategies and performance of high-
tech firms. Journal of International Marketing, 22(3), 94-113.
Liu, P. L., Chen, W. C., & Tsai, C. H. (2005). An empirical study on the correlation between the knowledge
management method and new product development strategy on product performance in Taiwan’s
industries. Technovation, 25(6), 637-644.
Lumpkin, G. T. & Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance:the
moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5), 429-451.
Lusch, R. F. & Vargo, S. L. (2006a). The service-dominant logic of marketing: reactions, reflections, and
refinements. Marketing Theory, 6(3), 281–288.
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SME performance. IndustrialMarketing Management, 40(3), 368-375.
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development and validation of a scale. Product Development and Management Association, 32(2),224–232.
Nandan, S. (2005). An exploration of the brand identity-brand image linkage: Acommunications perspective.
Journal of Brand Management, 12(4), 264-278.
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new‐product success. Journal of product innovation management, 2 (5), 334-347.
O’Sullivan, D. & Abela, A. V. (2007). Marketing performance measurement ability and firm performance.
Journal of Marketing, 71(2), 79-93.
Ottosson, M. & Kindstrom, D. (2016). Exploring proactive niche market strategies in the steel industry:
activities and implications. Industrial Marketing Management, 55, 119-130.
Perkmann, M. & Walsh, K. (2007). University–industry relationships and open innovation: towards a research
agenda. International Journal of Management Reviews, 9(4), 259-280.
Reid, M., Luxton, S., & Mavondo, F. (2005). The relationship between integrated marketing communication,
market orientation, and brand orientation. Journal of Advertising, 34(4), 11-23.
Schoenherr, T., Griffith, D. A., & Chandra, A. (2014). Intangible capital, knowledge and new product
development competence in supply chains: Process, interaction and contingency effects among
SMEs. International Journal of Production Research, 52(16), 4916-4929.
Shankar, V. (2006). Proactive and reactive product line strategies: asymmetries between market leaders and
followers. Management Science, 52(2), 276-292.
Shirazi, A., Lorestani, M, & Ahmadreza, K. M. (2013). Investigating the effects of brand identity on customer
loyalty from social identity perspective. Iranian Journal of Management Studies.International Journal
of Molecular Sciences,6(1), 153 -178
Slater, S. F., Mohr, J. J. & Sengupta, S. (2014). Radical product innovation capability: Literature review,
synthesis, and illustrative research propositions. Journal of Product Innovation Management, 31(3),
552-566.
Sookaneknun, S. & Ussahawanitchakit, P. (2012). Transformational leadership, organizational innovation
capability, and firm performance of cosmetic businesses in Thailand. Journal of International
Business and Economics, 12(4), 77-91.
Thai Furniture Industry Club, The Federation of Thai Industries. (2015). Retrieved March 16, 2015,
from https://www.facebook.com/pages/Thai-Furniture-Industry-Club-The-Federation-of-Thai-
Industries/161239500743588
Trade policy and strategy office, (2015) Retrieved March 13, 2015, from http://www.tpso.moc.go.th/en/
Strategic_Trade_Policy_and_Strategy_en
Tu, Y., Li, M., & Chih, H. (2013). An empirical study of corporate brand image, customer perceived value and
satisfaction on loyalty in shoe industry. Journal of Economics and Behavioral Studies, 5(7), 469-483.
Upshaw, L. B. (1995). Building brand identity: A strategy for success in a hostile marketplace (Vol. 1).
New York: Wiley.
Walker, O. C. & Ruekert, R. W. (1987). Marketing’s role in the implementation of business strategies: A critical
review and conceptual framework. Journalof Marketing, 51(1), 15-33.
Wei, Y. & Wang, Q. (2011). Making sense of a market information system for superior performance: the roles
of organizational responsiveness and innovation strategy. Industrial Marketing Management, 40(2),
267-277.
Wongtianchai,S. & Ussahawanitchakit, P. (2014). Marketing-driving strategy and marketing performance:
an empirical investigation of software businesses in Thailand. Journal of International Finance and Economics,
14(2), 81-98.
Yoo, X. & Donthu, N. (2001). Developing and validating a multidimensional consumer-based brand equity
scale. Journal of Business Research, 52(1), 1-14.
Zemlickiene, V. & Maditinos, D. I. (2012). Marketing strategy formulation for innovative product development
process. Business: Theory and Practice/Verslas: Teorija ir Praktika, 13(4), 365-374.
Zhang, J., Zhu, W. J., Xu, X. H., & Zhang, Z. G. (2011). Effect of fluoride on calcium ion concentration and
expression of nuclear transcription factor kappa-B ρ65 in rat hippocampus. Experimental and
toxicologic pathology, 63(5), 407-411.
Zhao, Y. L., Libaers, D., & Song, M. (2015). First product success: a mediated moderating model of resources,
founding team startup experience, and product‐positioning strategy. Journal of Product Innovation
Management, 32(3), 441-458.
Armstrong, J. S. & Overton, T. S. (1977). Estimating non-response bias in mail surveys. Journal of Marketing
Research, 14 (3), 396-402.
Atuahene-Gima, K. & Murray, J. Y. (2004). Antecedents and outcomes of marketing strategy comprehensiveness.
Journal of Marketing, 68 (4), 33-46.
Atuahene-Gima, K. Slater, S. F., & Olson, E. M. (2005). The contingent value of responsive and proactive
market orientations for new product program performance. Journal of Product Innovation Management,
22(6), 464-482.
Blois, K. (1985). New product development-proactive or reactive. Journal of Marketing Management, 1(1-2), 27-34.
Costa, L. A., Cool, K., & Dierickx, I. (2013). The competitive implications of the deployment of unique resources.
Strategic management journal, 34(4), 445-463.
Dawson, K., Larsen, P., Cawood, G., & Lewis, A. (2005). National product design identities. Creativity and
Innovation Management, 14(4), 393-404.
Dekimpe, M. G. & Hanssens, D. M. (1999). Sustained spending and persistent response: A new look at long-
term marketing profitability. Journal of Marketing Research, 397-412.
Dibrell, C., Davis, P. S., & Craig, J, (2008).Fueling innovation through informationtechnology in SMEs.
Journal of Small Business Management,46(2), 203–218.
Griffith, D. A. & Rubera, G. (2014). A cross-cultural investigation of new product strategies for technological
and design innovations. Journal of International Marketing, 22(1), 5-20.
Hair, J. F. Jr., Black, W. C., Babin B. J., Anderson, R. E., & Tatham, R. L. (2010). Multivariate data analysis,
(6thed.). New Jersey: Pearson Education International.
Jangalova, M. (2012). Business excellence evaluation as reaction on changes in global business environment.
Procedi- Social and Behavioral Sciences, 62(2), 1056-1060.
Jumpapang, M., Ussahawanitchakit, P., & Jhundra-indra, P. (2013). Value creation strategy and marketing
performance of food businesses in Thailand: An empirical investigation of the antecedents and
consequences. Journal of International Finance and Economics, 13(3), 5-34.
Keller, K. L. (1998). Branding perspectives on social marketing. NA-Advances in Consumer Research, 25(19), 299-302.
Kotler, P. & Keller, K. (2012). Marketing management (14th ed.). Prentice Hall: Pearson International Education.
Kumar, M. & Noble, C. H. (2016). Beyond form and function: why do consumers value product design?
Journal of Business Research, 69(2), 613-620.
Lamore, P. R., Berkowitz, D., & Farrington, P. A. (2013). Proactive/responsive market orientation and
and development integration. Journal of Product Innovation Management, 30(4), 695-711.
Landwehr, J. R. & Herrmann, A. (2015). Marketing and product design: a rocky love affair. GfK Marketing
Intelligence Review, 7(2), 8-15.
Lee, A. S. (2014). The investigation into the influence of the features of furniture product design on consumers’
perceived value by fuzzy semantics. South African Journal of Business Management, 45(1), 79-93.
Lee, C. H., Tseng, C. L., & Chu, K. K. (2016). Exploring strategy fit of competition on foreign enterprise and
brand strategy. The international journal of organizational innovation, 8(3), 99-111.
Li, L., Qian, G., & Qian, Z. (2014). Inconsistencies in international product strategies and performance of high-
tech firms. Journal of International Marketing, 22(3), 94-113.
Liu, P. L., Chen, W. C., & Tsai, C. H. (2005). An empirical study on the correlation between the knowledge
management method and new product development strategy on product performance in Taiwan’s
industries. Technovation, 25(6), 637-644.
Lumpkin, G. T. & Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance:the
moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5), 429-451.
Lusch, R. F. & Vargo, S. L. (2006a). The service-dominant logic of marketing: reactions, reflections, and
refinements. Marketing Theory, 6(3), 281–288.
Luo, Y. E., Wong, V., & Chou, T. J. (2016). The role of product newness in activating consumer regulatory
Maraprukwan, P. & Suksa-nguwn-manoon, W. (2016). The direction of the Thai furniture in global market,
Trade Policy and Strategy Office, Thailand Ministry of Commerce, 17(1), 4-5.
Merrilees, B., Rundle-Thiele, S., & Lye, A. (2011). Marketing capabilities: antecedents and implications for B2B
SME performance. IndustrialMarketing Management, 40(3), 368-375.
Moon, H., Park, J., & Kim, S. (2015). The importance of an innovative product design on customer behavior:
development and validation of a scale. Product Development and Management Association, 32(2),224–232.
Nandan, S. (2005). An exploration of the brand identity-brand image linkage: Acommunications perspective.
Journal of Brand Management, 12(4), 264-278.
Narver, J. C., Slater, S. F., & MacLachlan, D. L. (2004). Responsive and proactive market orientation and
new‐product success. Journal of product innovation management, 2 (5), 334-347.
O’Sullivan, D. & Abela, A. V. (2007). Marketing performance measurement ability and firm performance.
Journal of Marketing, 71(2), 79-93.
Ottosson, M. & Kindstrom, D. (2016). Exploring proactive niche market strategies in the steel industry:
activities and implications. Industrial Marketing Management, 55, 119-130.
Perkmann, M. & Walsh, K. (2007). University–industry relationships and open innovation: towards a research
agenda. International Journal of Management Reviews, 9(4), 259-280.
Reid, M., Luxton, S., & Mavondo, F. (2005). The relationship between integrated marketing communication,
market orientation, and brand orientation. Journal of Advertising, 34(4), 11-23.
Schoenherr, T., Griffith, D. A., & Chandra, A. (2014). Intangible capital, knowledge and new product
development competence in supply chains: Process, interaction and contingency effects among
SMEs. International Journal of Production Research, 52(16), 4916-4929.
Shankar, V. (2006). Proactive and reactive product line strategies: asymmetries between market leaders and
followers. Management Science, 52(2), 276-292.
Shirazi, A., Lorestani, M, & Ahmadreza, K. M. (2013). Investigating the effects of brand identity on customer
loyalty from social identity perspective. Iranian Journal of Management Studies.International Journal
of Molecular Sciences,6(1), 153 -178
Slater, S. F., Mohr, J. J. & Sengupta, S. (2014). Radical product innovation capability: Literature review,
synthesis, and illustrative research propositions. Journal of Product Innovation Management, 31(3),
552-566.
Sookaneknun, S. & Ussahawanitchakit, P. (2012). Transformational leadership, organizational innovation
capability, and firm performance of cosmetic businesses in Thailand. Journal of International
Business and Economics, 12(4), 77-91.
Thai Furniture Industry Club, The Federation of Thai Industries. (2015). Retrieved March 16, 2015,
from https://www.facebook.com/pages/Thai-Furniture-Industry-Club-The-Federation-of-Thai-
Industries/161239500743588
Trade policy and strategy office, (2015) Retrieved March 13, 2015, from http://www.tpso.moc.go.th/en/
Strategic_Trade_Policy_and_Strategy_en
Tu, Y., Li, M., & Chih, H. (2013). An empirical study of corporate brand image, customer perceived value and
satisfaction on loyalty in shoe industry. Journal of Economics and Behavioral Studies, 5(7), 469-483.
Upshaw, L. B. (1995). Building brand identity: A strategy for success in a hostile marketplace (Vol. 1).
New York: Wiley.
Walker, O. C. & Ruekert, R. W. (1987). Marketing’s role in the implementation of business strategies: A critical
review and conceptual framework. Journalof Marketing, 51(1), 15-33.
Wei, Y. & Wang, Q. (2011). Making sense of a market information system for superior performance: the roles
of organizational responsiveness and innovation strategy. Industrial Marketing Management, 40(2),
267-277.
Wongtianchai,S. & Ussahawanitchakit, P. (2014). Marketing-driving strategy and marketing performance:
an empirical investigation of software businesses in Thailand. Journal of International Finance and Economics,
14(2), 81-98.
Yoo, X. & Donthu, N. (2001). Developing and validating a multidimensional consumer-based brand equity
scale. Journal of Business Research, 52(1), 1-14.
Zemlickiene, V. & Maditinos, D. I. (2012). Marketing strategy formulation for innovative product development
process. Business: Theory and Practice/Verslas: Teorija ir Praktika, 13(4), 365-374.
Zhang, J., Zhu, W. J., Xu, X. H., & Zhang, Z. G. (2011). Effect of fluoride on calcium ion concentration and
expression of nuclear transcription factor kappa-B ρ65 in rat hippocampus. Experimental and
toxicologic pathology, 63(5), 407-411.
Zhao, Y. L., Libaers, D., & Song, M. (2015). First product success: a mediated moderating model of resources,
founding team startup experience, and product‐positioning strategy. Journal of Product Innovation
Management, 32(3), 441-458.
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Published
25-10-2018
How to Cite
Muaengkhot, S., Jhundra-indra, P., & Boonlua, S. (2018). Proactive Product Strategy and Marketing Profitability: An Empirical Investigation of Furniture and Decorative Product Businesses in Thailand. Journal of Accountancy and Management, 10(3), 234–249. Retrieved from https://so02.tci-thaijo.org/index.php/mbs/article/view/222968
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