The Effect of Market Orientation on Service Quality

Abstract

The authors explore the effect of market orientation on service quality based on a survey on Taiwanese security brokerage firms. The results indicate that market orientation and service quality have a positive relationship, but fail to support the proposition of a curvilinear, diminishing function. An ad hoc investigation on the effects of individual components revealed that, among the four market orientation components, only customer orientation and profit expectation have a more consistent and significant effect on overall service quality and the five service quality components. Important managerial and future research implications are offered.     

Impact of Market Orientation and ICT on the Performance of Rural Smaller Service Enterprises*

Market orientation (MO) is considered as a competitive strategy for the smaller service enterprises based in rural locations. A model is proposed and validated for the rural tourism sector that encompasses the effects of MO and of the use of information and communications technology (ICT) on business activity, taking into account the business's financial results, improvements to the rural location, and the more personal, intangible impact on the local entrepreneur. ICT is found to have a positive impact on MO and outcomes, whereas, similarly, the adoption of MO is found to have a positive effect on outcomes.     

顾客满意导向的服务企业顾客抱怨管理体系分析

本文认为,有效的顾客抱怨管理对于化解顾客不满情绪,持续改进服务设计和提高服务质量,建立和维持与顾客的长期关系具有十分重要的意义.文章从抱怨处理系统、抱怨信息的搜集和分析、组织学习机制和持续改进、组织授权等几个方面对服务企业顾客抱怨管理体系进行了分析,指出服务企业必须把顾客抱怨管理提升到战略高度来认识,使管理工作系统化、规范化,才能在激烈的竞争中取得主动.     

The Carryover Effect of Customer Satisfaction on Service Quality Focused on Moderating Effect of Customer Trust and Cooperative Orientation

The current study is intended to provide a novel contribution in regards to the relationship between service quality and customer satisfaction by focusing on carryover effects of satisfaction judgment on perceived service quality of the subsequent transaction. In addition, we probe the role of customer trust in the relationship between customer satisfaction and service quality. The results indicate a cycle of customer satisfaction and perceived quality over time, which validates the concept of cycle of satisfaction. The results also indicate trust toward a service provider has a moderating role on the relationship between customer satisfaction and perceived service quality.     

The Influence of CEO Gender on Market Orientation and Performance in Service Small and Medium‐Sized Service Businesses

This study examines the effects of CEO gender on market orientation and performance (growth and profitability) among a sample of small and medium‐sized service businesses. Gender was found to have significant indirect effects (via market orientation) on both market performance (growth) and financial performance (profitability). That is, female‐led service SMEs perform significantly better due to their stronger market orientation relative those led by males. The findings further suggest that female‐led firms were slightly better than their male‐led counterparts in transmitting market performance into financial performance, although the differences were not statistically significant.     

Determinants of Internationalization Strategies of Emerging Market Firms: A Multilevel Approach

Recently, debates about uniqueness of emerging market firms’ (EMFs) internationalization strategies were a focus of research. Yet, findings regarding their determinants are mixed, and conclusions on how EMFs’ internationalization strategies can be theoretically explained vary greatly. This article elaborates on the underlying reasons for these inconclusive results and addresses them by the development of a multilevel theoretical framework allowing for a better understanding of integrative influence of institutional, sector, and firm-specific determinants of EMFs’ internationalization strategies. This framework is validated by evidence from Russia, and a multiple case study approach is adopted to investigate the determinants of internationalization strategies of Russian firms.     

Market Orientation: An Iterative Process of Customer and Market Engagement

ABSTRACT

Research Purpose. The objective of this research was to examine market orientation in organisations that deliver manufacturing-based services to both client organisations and their customers.

Research Approach. The case study research method employed three data collection methods: in-depth, semi-structured interviews, document analysis and physical artefact analysis. Embedded study units comprising groups of different stakeholders with distinctly different perspectives provided a basis for replication logic to enhance validity of the findings.

Findings. The research revealed that a firm's transition toward a market-oriented state is progressive. At a given point in time, a firm may be adjusting to its markets intuitively or cognitively; market responsiveness may be occurring in specific pockets of the firm, or as an enterprise-wide strategy; and some of the conditions specified may be met, some may be partly met and others may remain to be addressed in the future. A specific customer focus was important to the conceptualisation of market orientation in the case organisation.

Research Implications. Key implications of the research are as follows:

• In conceptualising market orientation as a process as opposed to an ideal state, important issues of structural and policy alignment and senior executive vision and drive are revealed;

• in addition to customer and competitor orientations and intra-organisational co-ordination, other dimensions of a market orientation revealed in the research context are a customer focus and a new knowledge orientation; and

• both inter- and intra-organisational co-ordination facilitate the development of market driven and market driving customer value.

Practical Implications. While the senior executives were aware of the significant performance benefits to be achieved through a national, market-oriented vision, the lack of a co-ordinated plan to achieve cultural change resulted in incremental achievements towards the vision. One key factor inhibiting the envisioned cultural change was the power base of those within the organisation who perceived that a national, market focus would eliminate local autonomy. Specific policy was required to align rewards with required behavioural change.

Contribution. This research provides a unique perspective of market orientation as process of organisational development directed towards aligning the organisation with its served markets. Intervention strategies and incremental changes attempted to achieve a national market perspective, highlight the importance of aligning structure, human resource management strategy, top management commitment and leadership drive in achieving such a cultural change.     

Management of Customer Expectations in Service Firms: A Study and a Checklist

There has been much emphasis in recent years, both in the service quality and customer satisfactoin literature, on the need to understand customer expectations. Less attention has been given to the management of expectations. This paper reports on a recent study of expectations management practices in British service firms and offers a checklist for service firms to use in the evaluation of their expectations management practices. It also links expectations management practices to overall customer satisfaction and market share.     

Impact of Customer Orientation,Inducements and Ethics on Loyalty to the Firm: Customers’ Perspective

Customer orientation (CO) and the development of long-term relationships with customers are known conditions for growth and profit sustainability. Businesses use special treatments, inducements, and personal gestures to show their appreciation to customers. However, there are concerns about whether these inducements really create the right perceptions in customer’s mind. This study suggests that when customers believe that the firm is ethical, the inducements and special treatments received are seen in a positive light and can help develop loyalty. The hypotheses were tested with responses from 299 customers of financial institutions in Chile. Results support the hypotheses that firm’s ethical reputation helps in retaining customers. Managerial implications are provided.     

Perception Gaps in Customer Expectations: Managers Versus Service Providers and Customers

Two new gaps are added to the 5-gap model proposed by PZB. These new gaps reflect the differences in the understanding of customer expectations by manager and front-line service providers and in customer expectations and service providers' perception of such expectations. Using room service as the object for investigation, the present study provides empirical evidence indicating the existence of these gaps which have negative impact on overall service quality. The findings also disclose that the gap between customer expectations and managers' perception of such expectations is much larger than the gap between customer expectations and service providers' understanding of such expectations.     

The Impact of Market Orientation on the Internationalization of Retailing Firms: Tesco in Eastern Europe

This paper investigates a Western retailer's market orientation levels in two emerging markets. We examine whether the market orientation-company performance link holds true for retailers in emerging economies, despite environmental differences. By using concepts from key studies we have assimilated a fully representative model - applied through interviews with top management from Tesco and its subsidiaries and affiliates in Hungary and Slovenia. Using this example, we find that the market orientation-business performance link is valid for Western retailers in emerging economies. Here, the retailer applied market orientation predominately through; the use of matching with suppliers of own brand goods; top management emphasis on market orientation and risk taking. Intelligence generation and dissemination was exercised via global processes such as brand review.     

The Effect of a Market Orientation on Business Performance: A Study of Small-Sized Service Retailers Using MARKOR Scale

Conventional marketing wisdom holds that a market orientation provides a company with a better understanding of its customers, competitors, and environment, which subsequently leads to superior firm performance. While researchers have explored the relationship between market orientation and business performance in different organizations, such studies in small-sized service retailers are scarce. This study investigates potential influences of market orientation on small-sized service retailer performance. Data for this study were collected through personal interviews, and Kohli, Jaworski, and Kumar's market orientation scale was used to specify the dimensions of a market-oriented organization. Results indicated that Kohli, Jaworski, and Kumar's market orientation scale provided a good measure of market orientation in this setting. Also, the results of analyses indicated a significant link between market orientation and small-sized service retailer performance. The managerial implications are discussed.     

Globalization of Smaller Firms: Field Notes on Processes

Smaller firms have played a pivotal role in the present decade of globalization. Reduced barriers to international trade and investment coupled with the advances in information technology have accorded opportunities for smaller firms -- employing fewer than 500 persons -- to emerge as multinational. The focus of this exploratory paper is on the how of their globalization or internationalization. Information from field studies of seven firms -- three Dutch and four American -- obtained by means of personal interviews with senior managers constitutes the primary qualitative data. Considering the convenient choice of the firms and the subjective nature of the recall data the paper, without claiming to draw any inferences, offers three initial propositions, for further refinement, expansion and empirical testing.     

服务质量构成要素对顾客满意影响力差异研究--现有顾客同潜在顾客间的比较

本研究通过对银行服务业现有顾客样本和潜在顾客样本的比较分析发现:两种不同类型的顾客样本分析结果都显示服务互动质量和结果质量要素对顾客满意都有显著正影响,顾客满意对(重复)购买或口头传播等行为意向有积极效应。物理环境质量对顾客满意的显著影响效应只是在潜在顾客样本中发现,而在现有顾客样本中并不显著。现有顾客样本的分析结果显示三方面服务质量要素对顾客满意的影响力是有显著差异的,而对于潜在顾客样本,三方面的服务质量要素对顾客满意的形成所起的作用没有显著差别。     

服务性企业社会责任与顾客忠诚影响机制研究

在社会认同理论的基础上,通过建立服务业企业社会责任与顾客忠诚的关系模型,研究发现企业社会责任对服务评价、消费者认同感有正面效应,服务评价、消费者认同感对顾客忠诚有正面效应,企业社会责任对顾客忠诚没有直接的作用,但通过服务评价、消费者认同感对顾客忠诚产生间接影响。     

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。     

The Impact of Other Customers on Customer Citizenship Behavior

Despite extensive research on the antecedents of customer citizenship behavior, the influence of other customers remains a neglected area in service research. Drawing on social information processing and interpersonal influence theories, this article investigates how citizenship behavior of focal customers is shaped by citizenship behavior of other customers. This study also examines how informational influence in the form of other‐customer credibility and normative influence in the form of customer social identity moderate this relationship. Using qualitative and quantitative data, this study shows that other‐customer citizenship behavior drives focal customer citizenship behavior. This link is also moderated by informational influence (other‐customer credibility) and normative influence (social identity). From a theoretical standpoint, the findings provide preliminary evidence that other‐customer focus is critical to an understanding of customer citizenship behavior. This study also identifies the boundary conditions for these relationships. From a practical standpoint, the findings suggest that managers need to identify and pay attention to customers who exhibit citizenship behavior so that customer citizenship behavior is reciprocated and extended to other customers in the service encounter.     

Effect of Customers' and Suppliers' Perceptions of the Market Orientation of Manufacturing Firms on Channel Relationships and Financial Performance

ABSTRACT

This study is designed to investigate the effect of customers' and suppliers' perceptions of the market orientation of manufacturing firms on customers' and suppliers' trust in, cooperative norms in, and satisfaction with the relationship with the manufacturing firm. The findings from a sample of 72 matched sets of suppliers, manufacturing firms and customers in industrial channels in the Netherlands reveal that the perceived market orientation of manufacturing firms engaged in channel partnerships has a positive influence on customers' and suppliers' levels of trust in, cooperative norms in, and satisfaction with the relationship. This study further investigates the effect of the customers' and suppliers' trust in, cooperative norms in, and satisfaction with the relationship on the financial performance of the manufacturing firm. The results reveal that customers' and suppliers' cooperative norms in the relationship positively influence the manufacturing firm's financial performance. Customer's and supplier's trust in and satisfaction with the relationship have no effect on the manufacturing firm's financial performance.