Relating strategic market orientation and market performance: role of customer value types

A service provider achieves competitive advantage by configuring appropriate strategic orientation and customer value type. This paper addresses three important issues: (i) which customer value type (economical, relational or technical) is important for bank customers? (ii) which strategic market orientation (customer or competitor) helps in achieving the desired value type? and (iii) which value type significantly predicts market performance? We propose that a strategic market orientation pursued by a firm shall influence the customer value it intends to offer so as to maximize the market performance. Using data collected from 538 bank customers, this study reveals that when there is a perfect match between strategic market orientation and value being perceived by its customers, a firm shall achieve strategy-value fit and realize optimal market outcomes in the form of customer satisfaction, acquisition, retention, cross-selling, and up-selling. Furthermore, a bank shall realize maximum level of market performance if it pursues both customer and competitor orientation and endeavors to deliver technical/functional value to its target customers. The paper concludes with managerial implications and future research directions.     

Impact of individual market orientation on selling and customer orientation

ABSTRACT

We analyze the direct effect of individual market orientation on selling orientation-customer orientation of corporate insurance agents licensed in an emerging market based on the data collected using a random survey of corporate insurance agents in the Life Insurance sector in India. The results indicated that individual market orientation had a significant relationship with selling orientation, but the intensity was weak. However, causal relationship between individual market orientation and customer orientation was moderate. Future research should focus on analyzing the influence of the dimensions of individual market orientation on employee commitment, loyalty and should analyze the moderating effects of various associated variables. The findings indicate that efforts should be made to generate market-oriented behavior among individuals to propel selling orientation and customer orientation.     

Supermarket self-checkout service quality,customer satisfaction,and loyalty: Empirical evidence from an emerging market

Supermarket shoppers around the world are increasingly encountering and using self-service technologies (SSTs) during their shopping process. The SSTs are mainly offered to reduce retailer costs and enhance customer's experience. Among the many different SSTs available, self-checkout systems (SCS) have become an extremely popular choice of supermarkets around the world. Although some of the main motivations of the supermarkets for offering SCSs are cost cutting, speed, and convenience, supermarkets are also assuming that these services would enhance customer experience, satisfaction, and ultimately loyalty. However, empirical evidence is needed to better understand customer expectations of SCS service quality and how technology based service quality impacts retail patronage. Therefore, the purpose of this research is to examine the service quality of supermarket/grocery store SCSs and its impact on customer satisfaction and loyalty in an emerging market, namely Turkey. Using the SSTQUAL scale (Lin and Hsieh, 2011), data (n=275) for the study is collected from shoppers who had just completed going through the self-checkout counter in a large supermarket chain. The results of this study show that SCS service quality positively influences loyalty through the customer satisfaction path. Managerial and research implications of the findings are discussed.     

Telecom market liberalization and service performance outcomes of an incumbent monopoly

Using data from a high-income, emerging market economy in the Middle East, this study examines changes in service performance outcomes of an incumbent monopoly during different periods in the phased liberalization of the country’s telecommunications market. The study draws on Structure-Conduct-Performance (SCP) theory and Social Exchange Theory (SET) to develop hypotheses about expected changes in four customer-based service performance outcomes—service quality perceptions, customer satisfaction, customer loyalty, and customer attitudes. These are tested using data collected in a longitudinal tracking study spanning different periods in the liberalization process. Results show that all four performance outcomes improved significantly during an early post-liberalization period when there was only one additional competitor in the market, but declined slightly during a later period when a second competitor entered the market. However, structural relationships among the outcomes themselves remained invariant across liberalization periods. Policy-making and theoretical implications of the results are outlined and discussed. Although the data come from a single industry in an emerging market economy, a particularly key implication is that while incumbent monopolies may initially harbor a preference for the comfort and ‘freedom’ that comes with being the only player in the market, under certain circumstances liberalization can actually benefit them through the impetus that it provides for their own service quality improvements.     

A value-based perspective of market orientation and customer service

This study aimed to build a model of business performance based on customer value-defined market orientation. In the context of a service retail industry, both firms’ and customers’ perspectives were involved in the development of the construct, using such dimensions as management support, employee efforts and customer satisfaction. The authors undertook a large-scale fieldwork to collect matched response data from firms and consumers and to test the proposed model. The results provide empirical evidence of the effects of a customer value-based market orientation on business performance, measured in terms of customer retention. In addition, this study identified three drivers of employees’ effort to implement market orientation from a value perspective.     

Bridging the gap between employees and customers

Abstract

Employing modern definitions of the marketing concept, we develop a unified model to measure the market orientation construct. We then employ a chain-link model linking employee satisfaction and motivation to customer behaviour and firm profitability, demonstrating that market orientation mediates the employee–customer relationship. Hence, while past research has studied market orientation, per se, we demonstrate why it is important – it serves as the bridge to link employees and customers.     

Predicting market orientation through internal market orientation as culture and behaviour: an empirical application in Spanish hotels

The aim of this study is to analyse how the internal market orientation, considered from a dual perspective, cultural and behavioural, affects the development of external market-oriented behaviours by improving the attitudinal results (affective commitment and job satisfaction) of the internal customers. An empirical study was carried out, based on the perceptions of 68 managers and 296 supervisors at four- and five-star hotels in Gran Canaria (Canary Islands, Spain). The findings show that (1) the internal market orientation (IMO) has a positive influence on the effective development of market orientation behaviours in managers and supervisors; (2) the IMO has a positive influence on the affective commitment and job satisfaction of hotel managers, but not supervisors; and (3) greater affective commitment and job satisfaction have no significant effect on market orientation behaviours in hotel managers or in supervisors. Based on the study results, the paper concludes with a discussion and implications for practitioners.     

Sustainable market orientation: a competitive strategic tool in an emerging economy context

The purpose of this research is to test the effect of sustainable market orientation (SMO) as a strategic tool on banks’ sustainable balanced firm performance (SBFP) in an emerging economy. The research data was collected via the survey approach through self-administered questionnaires to 445 bank employees. Exploratory Factor Analysis was employed to establish the dimensionality of the research constructs, whereas multiple linear regressions were utilised to test the research hypotheses. Results suggest that SMO is positively and significantly related to sustainable balanced performance of banks. The study confirms the SMO concept promulgated in prior studies. Employees’ opinions on bank Managers incorporating sustainability management variables into market orientation as a strategy are encouraged by scholars to engender SBFP. Strategic approaches of this kind leads to balance performance of organisations and the larger society which is central to all stakeholders. This study may be the initial quantitative investigation into SMO and SBFP in the strategic marketing literature.     

手机银行顾客满意度模型的研究

手机银行是一个新兴的移动电子商务应用,它是一种融合了新技术的业务启用。目前关于手机银行的研究主要集中在技术改进和顾客采纳其服务的影响因素方面,然而,采纳手机银行服务之后,其顾客满意度的研究较少。本文以手机银行作为研究对象,选取了ACSI(美国顾客满意度指数)模型作为参考模型,并加入感知风险变量,在此基础上构建出手机银行顾客满意度的概念模型,为银行提高竞争力提供参考建议。     

Information Gathering and Customer Value Creation in Business-to-Business Services:

Regardless of whether a product or a service is offered, or whether the customer is an organization or a final consumer, the company that adopts a market orientation (seeks to gather information on the customer and to offer the highest value to the customer) has the greatest potential for success in the marketplace. This study examines whether the adoption of business-to-business services by customer firms is influenced by the perceived level of market orientation of the service provider. Empirical results from the telecommunication industry showed that if the vendor firm were perceived to gather relevant customer information and to provide a more valuable service offer to the customer firm, the customer would weight the value of the service offer more highly in the adoption decision. Managerial implications and directions for future research are presented in the concluding section.     

A review and evaluation of market orientation research in an emerging African economy

ABSTRACT

The paper synthesizes the level of strategic market orientation of firms operating in the emerging economy of Ghana over the last two decades. It dwells on market orientation studies in general, and the banking industry and exporting firms in particular. Market orientation has a positive relationship with performance for both foreign and domestic firms across the many studies. Foreign firms in general appear more market oriented due to experience effect and relationship with parent organizations. As competition heats up in the banking industry, organizations need to be more innovative to sustain their performance or to survive. For exporting firms, there is the need for decreased formalization and increased decentralization so as to enhance the levels of market orientation. The paper develops propositions to guide organizations in applying marketing principles in the running of their business activities. Further, the paper provides an update on the literature with suggestions for future research in the theory and practice of strategic market orientation in the context of the study.     

Enhancing corporate social responsibility through market orientation practices in bottom of pyramid markets: with special reference to microcredit institutions

Market-oriented organizations are committed to understanding and serving customer needs. Customers become socially conscious, so market-oriented firms need to carry out ‘Corporate Social Responsibility’ (CSR) initiatives. The main aim of this study was to investigate the influence of market orientation on CSR among microcredit institutions. The findings of this study are useful for microcredit institutions and marketers operating in bottom of pyramid (BOP) market to enhance their CSR through market orientation practices. The sample comprised 250 managers of microcredit institutions operating in the rural areas of Sri Lanka. The surveys were administered for data collection. All the three components of market orientation, that is, customer orientation, competitor orientation, and inter-functional coordination significantly and positively influenced the CSR involvement. Adaptation to BOP Market Culture enhanced the positive influences of both customer orientation and inter-functional coordination, on CSR. From these findings, implications for theory and practice have been discussed.     

The effects of perceived value on loyalty: the moderating effect of market orientation adoption

This paper aims to identify the moderating effect of service firms’ adoption of market orientation on key variables of consumer behavior, namely perceived value and loyalty. The study took a business-to-customer perspective. First, the adoption of market orientation was measured, from the firm’s point of view. Second, customer perceptions were analyzed, using the two variables perceived value and loyalty. The sample comprised 100 service firms and 572 of their customers. The present work provides original insights, identifying that the effect of perceived value on loyalty depends on other variables external to the consumer, such as the market orientation approach.     

Book reviews

Many commentators suggest that market and competitive dynamics threaten the very survival of small shops in the UK. In light of this, the research presented here reports the findings of a major study that investigates the relationship between market orientation and performance in small UK retailers through an empirical analysis of survey data. Findings indicate that market orientation and performance are positively related and, moreover that, the customer strategy focus of small retailers is the key determinant of success compared with other components of market orientation and environmental influences. The implications for practitioners and policy makers are considered, particularly the importance of market-oriented culture in formulating and implementing customer-led strategies which distinguish successful small retailers from those that struggle to survive.     

SME Internet use and strategic flexibility: the moderating effect of IT market orientation

Abstract

One of the most important topics in the marketing literature has been the concept of market orientation. However, questions remain as to the dynamics of how market orientation translates into intermediate capabilities. This study explores relationships among different types of Internet usage, IT market orientation (the extent to which IT is aligned to manage customer and competitor information and internal activities), and strategic flexibility (firm capability to respond to the need for change). Specifically, use of the Internet for communication with relevant stakeholders, owing to its market-sensing potential, should be positively and significantly related to strategic flexibility for SMEs with more IT market-oriented alignment. The market-sensing potential of Internet communication to impact strategic flexibility positively for SMEs is likely to be lost under low IT market-oriented-alignment conditions. In contrast, IT market orientation should not moderate the relationship between Internet use for transactions with relevant stakeholders and strategic flexibility, given that the typical order taking and processing is a static, routine function for SMEs. Results supported hypothesised relationships. By delineating the type of Internet usage and required IT alignment that contribute to leveraging the Internet effectively, findings hold implications for future research by clarifying boundary conditions for Internet effects. Specifying how and when Internet use promotes strategic flexibility, an important enabler of competitive advantage, helps small business owner/managers better utilise their limited resources.     

Antecedents of Customer Satisfaction and Customer Loyalty for Emerging Devices in the Initial Market of Korea: An Equity Framework

This study investigates the relevant predictors of customer satisfaction and customer loyalty, and explores the group difference by innovativeness or device type, based on equity theory for emerging devices in the initial market of Korea. The results from an online survey of users of emerging devices and structural equation modeling indicate that utilitarian benefit, hedonic benefit, nonmonetary cost, and alternative attractiveness are significant predictors of customer satisfaction, which in turn affects customer loyalty. Hedonic benefit has a stronger relationship with customer satisfaction for more innovative users and nonmonetary cost has a stronger relationship with customer satisfaction for less innovative users. Nonmonetary cost has a negative relationship with customer satisfaction for netbooks; an additional exploratory analysis produced no such evidence for smartphones. These findings suggest managerial implications for customer loyalty regarding emerging devices.     

服务型企业组织导向的整合机制研究——兼论员工与顾客的价值统一性

员工导向与顾客导向是组织导向的重要内容,但已有研究发现二者存在潜在冲突。本研究试图在利益相关者理论框架下,引入员工承诺和顾客满意两类关键变量,探索员工与顾客的价值统一性,以发展员工导向与顾客导向的整合机制。运用来自我国服务型企业的研究数据分析发现,员工导向与顾客导向能够在员工承诺和顾客满意的联结作用下有效整合,并共同推动企业市场效能的提升;同时,实证结论还显示,传统服务型企业和高端服务型企业的组织导向整合机制存在显著差异性。最后,文章对研究结论的理论与实践启示,以及存在的局限性进行讨论。     

Testing interaction effects of the dimensions of market orientation on marketing program creativity

Despite the plethora of research on market orientation, our understanding of how different dimensions of market orientation interact with each other in generating new intelligence for marketing programs is limited. In this paper, we develop and test a model that examines the interaction effects of the three dimensions of market orientation—customer orientation, competitor orientation, and cross-functional integration—on generation of marketing program creativity, composed of novelty and meaningfulness dimensions. In empirically testing such effects, we illustrate how to use two-stage least squares (2SLS) estimation. We find significant positive interaction effects between customer orientation and competitor orientation and between competitor orientation and cross-functional integration in predicting marketing program novelty. We also find that competitor orientation and cross-functional integration significantly and positively interact with each other in improving marketing program meaningfulness. Our empirical results provide implications and directions for market orientation research.     

The effects of market orientation on subsidiary performance: Empirical evidence from MNCs in Turkey

Much scholarly work has been devoted to studying the performance implications of market orientation. This study examines the direct and indirect effects of market orientation on financial performance of the subsidiaries of MNCs located in Turkey. The findings indicate that a market orientation affects financial performance of MNC subsidiaries that operate in diverse and complex economic, cultural, and political environments of the Middle East. Moreover, authors demonstrate that the customer-related mechanisms (customer satisfaction and retention) mediate the market orientation–performance relationship. The paper also discusses the theoretical and practical implications of study findings.