Science video: Managers overestimate market share

The higher the market share, the better? This widespread mantra of increased sales has become outdated among managers. This has been shown in a study led by Alexander Himme, Associate Professor of Management Accounting at KLU, and marketing expert, Dr. Alexander Edeling, University of Cologne. A video now publicized explains vividly the question, method and findings.

Watch the video.

The meta-study was published in the Journal of Marketing and was much discussed in the marketing community. In 2018, it was among the three most often shared publications of this internationally leading scientific journal for business administration and marketing (source: Altmetric Attention Score). In 2019 it was nominated for the "Best Paper Award" of the Association of University Lecturers in Business Administration (Verband der Hochschullehrer für Betriebswirtschaftslehre).

Great media attention - now a video

"Contributions to the study in WirtschaftsWoche, specialized journals such as changement! (Handelsblatt Media Group) and Horizont or in the Neue Zürcher Zeitung have shown that our research provides important approaches for practical application. The results are just as relevant today. With this video, I would now like to make our findings available to everyone interested in strategic corporate management," says Prof. Alexander Himme about the video.

Underrated: Image, brand strength and customer loyalty

The researchers have analyzed the impact of sales and therefore the market share on the profitability of companies worldwide. "This is an incredibly strategic question that is often discussed at the highest level of management," explains Himme. Accordingly, the impact of market share varies greatly depending on the industry, market segment and global region. What is more important for profit are the previously underestimated key figures on image, brand equity and customer loyalty. "So what we need are alternative corporate strategies," summarizes Himme.

More information:

  • Press release
  • Edeling, A., & Himme, A. (2018). When Does Market Share Matter? New Empirical Generalizations from a Meta-Analysis of the Market Share–Performance Relationship. Journal of Marketing, 82(3), 1–24. https://doi.org/10.1509/jm.16.0250