Market Orientation,Service Quality Perception,and Customer Satisfaction: The Role of Market-sensing Capabilities

Abstract

This article examines the relationship between market orientation, customers’ perception of firms’ service quality (SQ), and their satisfaction in the Nigeria banking sector. The Expectancy Confirmation Theory (ECT) was adopted to shape this study. The population of this study was employees and customers of Nigerian money deposit banks, and specifically, the survey approach was employed using the quantitative paradigm. We employed simple random sampling technique to select employees and customers from each of the 21 banks making a total of 594 samples, and, thereafter, questionnaires were distributed to customers and employees in the banking hall with the permission of banks. Simple linear and hierarchical regressions were used to test our formulated hypotheses and the study analysis found a positive and significant relationship between market orientation and SQ perceptions of customers. Also, market orientation on customer satisfaction (CSAT) is found to be positive and significant. Market-sensing capabilities were found to have significant but weak effect on the relationship between market orientation and SQ perceptions. Market-sensing capabilities were found to have no effect on the relationship between market orientation and CSAT. In other words, market-sensing capabilities were found not to be a moderator of the relationship between market orientation and CSAT.

Keywords

Market orientation service quality perception customer satisfaction market sensing capability Nigeria banks

Get full access to this article

View all access options for this article.

References

Abu

N. K.

(2004). Service quality dimensions: A study on various sizes of grocery retailers: A conceptual paper. Proceedings of IBBC 2004 (pp. 633–642).

Agrawal

Erramilli

M. K.

Dev

C. S.

(2003). Market orientation and performance in service firms: Role of innovation. Journal of Services Marketing , 17(1), 68–82.

Anderson

Naurus

(2007). Business market management: Understanding, creating and delivering value. New York, NY: Prentice Hall Publishers.

Atuahene-Gima

(1995). An exploratory analysis of the impact of market orientation on new product performance. Journal of Product Innovation Management , 12(4), 275–293.

Burns

A. C.

Bush

R. F.

(1995). Marketing research . Englewood Cliffs, NJ: Prentice Hall Publishers.

Buttle

(1995). Servqual: Review, critique, research agenda. European Journal of Marketing , 30(1), 8–32.

Cadogan

J. W.

Hooley

G. J.

Douglas

Matear

Greenley

G. E.

(2002). Measuring marketing capabilities: A cross-national study. Joint ANZMAC/EMAC Symposium: Marketing Networks in a Global Marketplace, December, Perth, Australia.

Chang

Chen

(1998). Market orientation, service quality and business profitability: A conceptual model and empirical evidence. Journal of Services Marketing , 12(4), 246–264.

Day

G. S.

(1994). The capabilities of market-driven organizations. Journal of Marketing , 58(4), 37–52.

10.

Deshpande

Farley

J. U.

Webster

(1993). Corporate culture, customer orientation and innovativeness in Japanese firms: A quadrad analysis. Journal of Marketing , 57(1), 23–37.

11.

Diaz

, (2013). A measure of market sensing capabilities. European Marketing Academy (EMAC), 42^nd Annual Conference, Istanbul, Turkey.

12.

Doyle

(1995). Marketing in the new millennium. European Journal of Marketing , 29(13), 223–41.

13.

Ellis

P. D.

(2007). Distance, dependence and diversity of markets: Effects on market orientation. Journal of International Business Studies , 38(3), 374–386.

14.

Gronroos

(1984). A service quality model and its marketing implications. European Journal of Marketing , 18(4), 36–44.

15.

Gronroos

(1994). From marketing mix to relationship marketing—Towards a paradigm shift in marketing. Australian Marketing Journal , 2, 9–29.

16.

Gummesson

(1995). Marketing of services. In Baker

M. J.

(Ed.), Companion encyclopedia of marketing (pp. 819–830). London, UK: Routledge.

17.

Hennig-Thurau

Gwinner

K. P.

Gremler

D. D.

(2002). Understanding relationship marketing outcomes: An integration of relational benefits and relationship quality. Journal of Service Research , 45, 230–247.

18.

Hossain

Leo

(2009). Customer perceptions on service quality in retail banking in the Middle East: The case of Qatar. International Journal of Islamic and Middle Eastern Finance and Management , 2(4), 338–350.

19.

Jalali

Khorshidahmadi

Jelvehnia

Purbakhsh

Golavar

(2013). Effect of market orientation on the customer satisfaction and organisational performance (Case Study: Pasargad Bank in Rasht, Gilan Province). Technical Journal of Engineering and Applied Sciences , 3(3), 1167–1171.

20.

Javalgi

Martin

C. L.

Young

R. B.

(2006). Marketing research, market orientation and customer relationship management: A framework and implications for service providers. Journal of Services Marketing , 20(1), 12–23.

21.

Jaworski

B. J.

Kohli

A. K.

(1993). Market orientation: Antecedents and consequences. Journal of Marketing , 57, 53–70. Retrieved from https://www.bear.warrington.ufl.edu./weitz/jaworskiandkohli.pdf

22.

Jones

M. A.

Sub

(2000). Transaction-specific satisfaction and overall satisfaction: An empirical analysis. Journal of Services Marketing , 14(2), 147–159.

23.

Kirca

A. H.

Jayachandran

Bearden

W. O.

(2005). Market orientation: A meta-analytic review and assessment of its antecedents ad impact on performance. Journal of Marketing , 69, 24–41. Retrieved from https://www.mpdev.marketingpower.com/journalofmarketing/mkg.62.2.02

24.

Kohli

A. K.

Jaworski

B. J.

(1990). Marketing orientation: The construct, research propositions, and managerial implications. Journal of Marketing , 54(2), 1–18. Retrieved from https://www.faculty.fuqua.duke.edu/marketing/jaworskiandkohli.pdf

25.

Kotler

Armstrong

(2001). Principles of marketing 9th Edition). New York, NY: Prentice Hall Publishers.

26.

Lankinen

Rokman

Tuominen

(2007). Market-sensing capability and market orientation in the food industry: Empirical evidence from Finland. Paper presented at the 19th Nordic Academy of Management Conference, Norwegian School of Economics and Business Administration, Norway.

27.

Lovelock

C. H.

Patterson

P. G.

Walker

R. H.

(2001). Services marketing–An Asia-Pacific perspective . Australia: Prentice Hall.

28.

Naik

C. N. K.

Gantasala

S. B.

Prabhakar

G. V.

(2010). Service quality (SERVQUAL) and its effect on customer satisfaction in retailing. European Journal of Social Sciences , 16(2), 231–243.

29.

Narver

Slater

(1990). The effect of market orientation on business profitability. Journal of Marketing , 54(4), 20–35.

30.

Nayebzadeh

(2011). The relationship between extended market orientation (EMO) and service quality (Case Study: Iran Banks). 2nd International Conference on Education and Management Technology, 2011. IPEDR vol.13. Singapore: IACSIT Press.

31.

Olivarrieta

(1999). Market oriented culture, knowledge-related resources, reputational assets and superior performance: A conceptual framework. Journal of Strategic Marketing , 7, 215–228.

32.

Oliver

R. L.

(1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research , 17(4), 438–460.

33.

Parasuraman

Zeithaml

Berry

L. L.

(1988). Servqual: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing , 64(1), 12–39.

34.

Parasuraman

Zeithaml

V. A.

Berry

L. L.

(1985). A conceptual model of service quality and its implications for future research. Journal of Marketing , 49, 41–50.

35.

Ramayah

Samat

M.-C.

(2011). Market orientation, service quality and organizational performance in service organizations in Malaysia. Asia-Pacific Journal of Business Administration , 3(1), 8–27.

36.

Ranaweera

Neely

(2003). Some moderating effects on the service quality-customer retention link. International Journal of Operations and Production Management , 23(2), 230–248.

37.

Ruekert

(1992). Developing a marketing orientation: An organizational strategy perspective. International Journal of Research in Marketing , 9(3), 225–245.

38.

Schlosser

F. K.

McNaughton

R. B.

(2004). Building competitive advantage upon marketing orientation: Constructive criticisms and a strategic solution. ASAC 2004, Quebec City, Quebec.

39.

Shapiro

B. P.

(1988). What the hell is marketing oriented? Harvard Business Review , 66(6), 119–125.

40.

Slater

F. S.

Narver

J. C.

(1994). Market orientation, customer value, and superior performance. Business Horizons , 37(2), 22–28.

41.

Suuroja

(2003). Service quality: Main conceptualizations and critique. Faculty of Economics and Business Administration, University of Tartu. Retrieved from https://tyk.ee/

42.

Zebal

M. A.

(2003). A synthesis model of market orientation for a developing country: The case of Bangladesh (Unpublished Doctoral thesis, Victoria University of Technology, Melbourne, Australia). Retrieved from https://www.eprints.vu.edu.au/276/1/02wholepdf

43.

Zebal

M. A.

Goodwin

D. R.

(2011). Market orientation in a developing nation-antecedents, consequences and the moderating effect of environmental factors. Marketing Bulletin , 22, 1–23. Retrieved from https://www.marketing-bulletin.massey.ac.nz/v22/MB-v22-zebal.pdf

44.

Zhou

K. Z.

J. J.

Zhou

(2004). Employee’s perceptions of marketing orientation in a transitional economy: China as an example. Journal of Global Marketing , 17(4), 5–21.

45.

Zhou

K. Z.

Gao

G. Y.

Yang

Zhou

(2005). Developing strategic orientation in China: Antecedents and consequences of market and innovation orientations. Journal of Business Research , 88, 1949–1058.