Market orientation, competitive advantage, and performance: A demand-based perspective

Kevin Zheng Zhou, James R. Brown and Chekitan S. Dev

Journal of Business Research, 2009, vol. 62, issue 11, 1063-1070

Abstract: This study assesses how customer value affects a firm's market orientation and consequently, competitive advantage and organizational performance in a service industry -- the global hotel industry. The findings show that if a firm perceives its customers as valuing service, the firm is more likely to adopt both a customer and a competitor orientation; if the firm thinks its customers are price sensitive, the firm tends to develop a competitor orientation. Moreover, the greater a firm's customer orientation, the more the firm is able to develop a competitive advantage based on innovation and market differentiation. In contrast, a competitor orientation has a negative effect on a firm's market differentiation advantage. Finally, innovation and market differentiation advantages lead to greater market performance (e.g., perceived quality, customer satisfaction) and in turn, higher financial performance (e.g., profit, market share).

Date: 2009
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Citations: View citations in EconPapers (68)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:62:y:2009:i:11:p:1063-1070

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