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

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Author Info
Zhou, Kevin Zheng
Brown, James R.
Dev, Chekitan S.
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).

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Publisher Info
Article provided by Elsevier in its journal Journal of Business Research.

Volume (Year): 62 (2009)
Issue (Month): 11 (November)
Pages: 1063-1070
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Handle: RePEc:eee:jbrese:v:62:y:2009:i:11:p:1063-1070

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Web page: http://www.elsevier.com/locate/jbusres

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This page was last updated on 2009-12-3.


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