Abstract This study examines how market orientation affects a firm's service innovation and consequently, the firm's market and financial performance. The findings indicate that if firms use customer orientation, the firm is more likely to adopt incremental service innovation, while if a firm uses competitor orientation, the firm is more likely to adopt radical service innovation. Finally, incremental and radical service innovations lead to greater market performance and in turn, greater financial performance.
1 Introduction
How service firms use market orientation has attracted great attention in innovation literature (Agarwal et al. 2003; Manzano et al. 2005). Market orientation refers to ‘‘the organizational culture that most effectively and efficiently creates the necessary behavior for the creation of superior value for buyers and thus, continuous superior performance for the business’’ (Narver and Slater 1990). A market-oriented service firm can better understand the needs and wants of customers so as to satisfy them more effectively and efficiently than its competitors (Zhou et al 2009). For example, a company called Cinedigm, which launched a network to provide digital cinema delivery in 2005, is a good example of a new service provider using market orientation. With its new service, film makers can deliver movies to theaters over a network, rather than through the traditional method of sending reels of film. This implies that to tap customer’s unfilled needs (e.g., time saving), Cinedigm creates a new service. Meanwhile, to provide better service to Cinedigm, network providers may focus on their competitor’s actions.
However, the empirical evidence of the linkage between market orientation and new service performanc...
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Meanwhile, service firms improved market performance will positively affect their financial performance. This is because higher levels of new service quality and customer satisfaction increase customer loyalty. As such, because loyal customers are less sensitive to price changes, service firms can offer premium prices, leading to a higher profit or market share (Prince and Simon 2009). In addition, the positive reputation that results from higher levels of market performance enables the firm to attract new customers and as a result increase a firms’s profit (Prince and Simon 2009). Thus,
H3a: The greater a firm’s incremental service innovation, the greater its market performance.
H3b: The greater a firm’s radical service innovation, the greater its market performance.
H3c: The greater a firm’s market performance, the greater its financial performance.
A characteristic of the marketing concept is customer orientation. Business activities are mostly engaged to produce a satisfied customer. They are there to Stress on the desires and wishes of a customer this keeps businesses on track with their target market. The best marketing decisions are completed on the foundation of making a massive impact in the market and towards customers. The consumers/people
Zeithaml, Valarie A, Berry, Leonard L, & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31. Retrieved April 1, 2011, from ABI/INFORM Global. (Document ID: 9401886).
However, you will gain a negative reputation if you are providing poor customer service. Revenue also has a similar impact as it is maintained and can increase with good customer service. This is because customers will pay more for your brand. However, if poor customer service is given, the revenue will decrease.
Slater, S. and Narver, J. (1995) 'Market orientation and the learning organization', Journal of Marketing 59(3): 63-74.
Marketing is a core pillar of an organization and contribute significantly in its prosperity through attaining the laid down targets as well as scope of development. The position of an organization is hugely based on its competitiveness and capacity to capture a significant portion of the market in relation to the prevailing needs of consumers. Interaction of the organization with the consumers and the potential consumer in the market arena is attained through the marketing wing of the organization (Ferrell& Hartline, 2012). The preferences of the consumer and avenues of satisfaction are aligned to the established marketing frameworks. However, the success of organization marketing is highly inclined to the marketing strategies formulated and adapted towards coping with competition and eventually enhancing firm competitiveness.
-Customers: The company felt the importance of being customer-centric and innovate by adapting to customer
It is a well-known fact that marketing is a way to get the business off the ground. Without marketing, then no one will know about the goods and services a brand is selling. “Good marketing makes the company look smart. Great marketing makes the customer feel smart.” (Chernov).
Williams, P. & Naumann, E. 2011, "Customer satisfaction and business performance: a firm-level analysis", The Journal of Services Marketing, vol. 25, no. 1, pp. 20-32.
The purpose of this section of this report is to define the marketing concept; to explain what it means to be a market-orientated organisation; and to show that Tesco’s appear to be a successful, market-orientated company. Furthermore, that Tesco’s employ strategic relationship marketing to offer value to customers’; and achieve higher revenues and brand loyalty in return. Finally, to explain that being market oriented may also have some disadvantages if not carried out effectively.
Dubrouski, D. (). The importance of services marketing for organizational change from Slovenian perspective. Retrieved September 11, 2005, from http://www.utdt.edu/congresos/empresarial/papers-ama/047.pdf
For a marketing orientated business, the findings from any research will be put to use primarily to aid the business in satisfying the needs and wants of its customers; this type of business has become more popular since 1970, where prior to this business’ were production orientated (until the 1950’s) where the business was concerned with improving its distribution methods, and product orientated (until the 1960’s) where the business’ main concern was the product rather than the satisfaction of the customer. The idea of a marketing orientated business has been explored by Fahy and Jobber (2012) who concurred that a market orientated business is one that considers its customers and the external environment to be an intricate part of the business; This type of business will explore the different aspects of the external environment, and take from its observations ways in which it can continue to trade in an effective, profitable way. A marketing orientated business will also use its findings to help it take advantage of any opportunities in a market and to lessen any threats that could be...
According to David Jobber (1995), marketing- oriented organization endeavor to create customer value with a specific end goal of attracting and retaining customers. Their main aim is to deliver better esteem to their targeted customers. In doing as such, they actualize the advertising idea by meeting and exceeding customer’s needs better than the competitions.
Innovation in business is a key aspect of staying viable in an ever changing climate of competition. One must continuously provide insight and solutions to issues, known and presently unknown through investigation and collaboration. Within this paper we will look into four businesses and their use of innovation in attempt at a better business or greater market share. The innovative businesses of interest are: Taco Bell, Zipcar, Dollar Shave Club and Kickstarter.
Loyalty customers gain the more cost advantage and benefit, this resist competitors very hard to match. Promoted cost bind to loyal customers to sustainable growing.
(1) efforts to improve the quality of their services, and (2) efforts to market themselves more effectively. Both service quality and services marketing have received considerable attention from researchers over the years and the application of these concepts in the service settings is therefore not surprising (Parasuraman et al., 1985; Rust and Oliver 1994; Zeithaml et al., 1990). One evidence of the importance of service quality and service