What Is the Relationship Between Market Share and Financial Firm Performance?

Increasing market share is a central aim for many businesses. In this video, ALEXANDER EDELING and ALEXANDER HIMME ask whether the pursuit of market share should retain its primacy in the era of globalization and digitization. Employing a meta analysis and drawing on data collected in 89 individual empirical studies, the authors assert that marketing assets like customer relationship and brands have a much more significant impact on financial firm performance than market share. The research has direct implications not only for performance measurement systems but also for the design and allocation of marketing budgets.