The Impact of Marketing Research Practices on Financial Performance: A Study of Small and Medium Enterprises in Sri Lanka

Abstract

Marketing research practices have been identified as one of the important key ingredients for superior performance and global competitiveness in Small and Medium Enterprises (SMEs). The success or failure of SMEs is said to rests in part on the nature and types of marketing research practices they employ. This study was carried out with four dimensions under the marketing research practices as price-related practices, product-related practices, maintain customer relationship related practices and promotion related practices to understand the relationship with financial performance in SMEs. Data were collected using questionnaires from 200 respondents in the SMEs. Based on the findings of the study, it was concluded that there is a moderate positive relationship between marketing research practices and financial performance. As well as all the dimensions of the marketing research practices are significant predictors of financial performance while price-related practices and product-related practices are major among them. According to the results of regression analysis, marketing research practices were found to have a positive impact on financial performance.