Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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The Effects of Export Market Prioritization on Superior Financial Performance: A Focus on Propositional Development

  • Oh, Han-Mo (Department of of International Trade, Chonbuk National University)
  • Received : 2019.08.30
  • Accepted : 2019.09.24
  • Published : 2019.09.30
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Abstract

Whether export-market prioritization is effective on financial performance is a controversial issue. Nevertheless, few studies have addressed this issue. The present study attempted to explicate the effects of exporters' market prioritization on their superior financial performance. Based prominently on the market-segmentation theory and the relationship-marketing theory, the current study developed propositions of whether export-market prioritization is economically reasonable. It is posited that export-market prioritization postively influences buyer satisfaction in a primary market; that export-market prioritization negatively affects on buyer satisfaction in a secondary market; that export market prioritization reduces costs in relation to export marketing and sales; that buyer satisfaction positively influences buyer loyalty for both buyers in primary markets and ones in secondary markets; that buyer loyalty positively influences share of wallet for both buyers in primary markets and ones in secondary markets; and that share of wallet positively influences sales per buyer for both buyers in primary markets and ones in secondary markets. Thus, exporters should identify suitable export-market segments and prioritize export markets. The present study suggested that exporters monitor market profitability, assess the quality of buyer information, and conduct selective organizational alignment in order to develop a prioritization strategy.

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