Supplier market orientation and accommodation of the customer in different relationship phases |
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Authors: | Yi-Ching Hsieh [Author Vitae] Hung-Chang Chiu [Author Vitae] Yi-Chieh Hsu [Author Vitae] |
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Affiliation: | a Department of Information Management, National Central University, 300, Jhongda Rd., Jhongli City, Taoyuan County, Taiwan, ROC b Institute of Technology Management, National Tsing Hua University, 101, Section 2, Kuang-Fu Road, Hsinchu, Taiwan, ROC c Financial Information Service Co. LTD., 81, Kang-Ning Rd., Sec 3, Nei-Hu District, Taipei, Taiwan, ROC |
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Abstract: | As customers' needs have changed rapidly, market orientation has become a more primary focus of marketing literature. This study explores the strategies market-oriented suppliers use to accommodate customer needs. In addition, because buyer-seller relationships proceed through phases characterized by distinct behaviors, this study explores the relationship between market orientation and accommodation strategies over the course of the buyer-seller relationship lifecycle. The results show that market-oriented firms use flexibility and relationship-specific adaptation as accommodation strategies. Also, three market orientation components (customer orientation, competitor orientation, and interfunctional coordination) relate differently to flexibility and relationship-specific adaptation during the relationship lifecycle. Finally, accommodation strategies significantly mediate the effects of the three market orientation components on customer satisfaction. Thus, market-oriented firms can satisfy their customers and avoid an overreliance on current relationships by emphasizing either flexibility or relationship-specific adaptations that correspond to the lifecycle of the relationship. |
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Keywords: | Market orientation Supplier accommodations Flexibility Relationship-specific adaptations Relationship lifecycle |
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