Total Market Orientation, Customer Value, And Market Performance From A Dual Perspective

Abstract

Most approaches to a market orientation focus ongenerating superior value for customers. Doing so determines the strength ofthe firm’s competitive advantage and thus its level of performance. Thisarticle considers this causal chain from a dual perspective, that is, that ofcompanies and their customers. Data collected from 55 companies, involving 146managers and 425 consumers of branded products that these companies sell,indicate that market orientation correlates with customer value (weak link but statistically significant) butnot with a subjective measure of market performance, that is, with customersatisfaction. Moreover, perceived value affects market performance, a findingthat corroborates the theory that a business that creates value that a consumerperceives as superior will enjoy improved market performance.