Analysing the Market Orientation s Effects on Economic Performance in Insurance Companies

The question of why some service organization are able to achieve superior performance continues to attention from both academics and practitioners. There are two key aspects to this question : 1- what are the sources of advantages that are important in achieving superior performance in service organizations 2- and how are these sources of advantages converted into superior performance. In the service context, organizational culture and vision are particularly important. However, three market-related sources of advantages which marketing literature has largely focused on, are market orientation, branding and innovation. Market orientation can be defined as a strategy used to reach a sustainable competitive advantage based on the generation and use of information within organization, and on the selection of markets to be satisfied. In this framework, we believe that competitive advantages results from the use market orientation philosophy in an organization. Sustainability is achieved because the performance of the market orientations’ behaviours requires complex organizational knowledge that cannot easily be imitated by competitors. Market orientation in an insurance industry is a business culture that is geared to providing ongoing superior products and services to the customers in that industry. The current work aims to analyze the effects of relationship and service – quality orientation and loyalty on market and economic performance and their mediating role in the relationship between market orientation and economic performance . In order to test the hypotheses proposed, an empirical analysis for insurance company was conducted. Therefore, the behavioural pattern of a sample population of Parsian insurance’s agents in Iran, and in relation to factors influencing the extent of economic performance, were considered, so to correlate the effect of each variable factor with the outcome. Within the context, both exploratory and practical research methodologies were utilized to arrive at conclusive data that in alliance with the structural equation model to effectively attest a meaningful correlation between the outline influential factors and the real extent of the effect of market orientation on economic performance . This work integrates market orientation philosophy with relationship marketing and service quality and loyalty as related drivers of the forms performance.