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Understanding Proactive Customer Orientation: Construct Development and Managerial Implications
Type
dissertation project
Start Date
01 July 2007
End Date
15 February 2011
Status
completed
Keywords
Market Orientation
Customer Orientation
Innovation
Market Strategy
Description
This work is devoted to the question of how managers can successfully probe latent needs and uncover future needs of customers, labeled as proactive customer orientation. To answer this question, three stages of research are deployed: (1) An exploratory study investigating two different dimensions of proactive customer orientation, (2) a quantitative study investigating consequences, antecedents, and factors that moderate the effects of proactive customer orientation, and (3) a qualitative study investigating situation-specific recommendations on how to increase proactive customer orientation.
First, based on an observation of specialized proactive customer-oriented departments, expert interviews, workshops with managers, and a meta-analysis of existing research, two dimensions of proactive customer orientation are defined, proactive customer-oriented climate and proactive customer-oriented processes. New scales are developed for the two constructs, and the reliability, validity, and generalizability of the second-order measurement models are supported by an empirical study of 218 business-to-business firms and 202 business-to-consumers firms.
Second, detailed research hypotheses are developed and tested with a cross-industry sample of 420 key informants, 82 additional informants, and 51 customers. Using structural equation modeling and hierarchical regression, the empirical results support that proactive customer-oriented climate and proactive customer-oriented processes are positively related with exploratory innovation and exploitative innovation, customer value, and superior business performance. Furthermore, four organizational values are identified as antecedents of proactive customer orientation, and several organizational characteristics moderate the relative importance of climate and processes for innovation, customer value, and performance.
Third, a systematic change process is developed to guide managers that aim to increase their company's proactive customer orientation. More specifically, a four-step process is recommended to successfully probe latent needs and uncover future needs of customers and introduce market-based innovations. However, a cluster analysis revealed different market-based innovation strategies. Typical firms for each strategy are described and situation-specific recommendations regarding resource allocation are given.
First, based on an observation of specialized proactive customer-oriented departments, expert interviews, workshops with managers, and a meta-analysis of existing research, two dimensions of proactive customer orientation are defined, proactive customer-oriented climate and proactive customer-oriented processes. New scales are developed for the two constructs, and the reliability, validity, and generalizability of the second-order measurement models are supported by an empirical study of 218 business-to-business firms and 202 business-to-consumers firms.
Second, detailed research hypotheses are developed and tested with a cross-industry sample of 420 key informants, 82 additional informants, and 51 customers. Using structural equation modeling and hierarchical regression, the empirical results support that proactive customer-oriented climate and proactive customer-oriented processes are positively related with exploratory innovation and exploitative innovation, customer value, and superior business performance. Furthermore, four organizational values are identified as antecedents of proactive customer orientation, and several organizational characteristics moderate the relative importance of climate and processes for innovation, customer value, and performance.
Third, a systematic change process is developed to guide managers that aim to increase their company's proactive customer orientation. More specifically, a four-step process is recommended to successfully probe latent needs and uncover future needs of customers and introduce market-based innovations. However, a cluster analysis revealed different market-based innovation strategies. Typical firms for each strategy are described and situation-specific recommendations regarding resource allocation are given.
Leader contributor(s)
Partner(s)
Marketing and Strategy Section, Cardiff University
Funder(s)
Topic(s)
Market Orientation
Customer Orientation
Innovation
Market Strategy
Method(s)
Qualitative und quantitative Methoden
Range
HSG Internal
Range (De)
HSG Intern
Division(s)
Eprints ID
60803
7 results
Now showing
1 - 7 of 7
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PublicationCreating a Proactive Market Orientation : On its Organizational Antecedents, Contingency Factors and ConsequencesMarketing scholars as well as leading managers agree on the importance of creating customer value for business success. But customer orientation may harm firms when they solely focus on expressed needs and miss to serve new customers or new markets. By responding to latent and emerging customer needs, firms can create new opportunities for value and maintain business success. Such a comprehensive market orientation (MO) is longer term in focus and proactive in nature. Even though the interest in exploring various aspects of proactive MO has increased during the last years, existing research has not focused on at least three different important aspects: First, it remains unclear which norms, artifacts and behaviors determine a proactive market-oriented culture. Second, current research neglects how organizations can find a proper alignment among responsibility for proactive MO, degree of specialization, external cooperations, and prevailing organizational values. Third, it lacks a comprehensive understanding of internal and external consequences. We used qualitative as well as quantitative research methods to investigate these research gaps. A multiple-case design has been applied to finalize a conceptual model on proactive MO, its organizational antecedents, contingency factors and consequences. Then, a dyadic survey of strategic business units in three industries (automotive, consumer electronics, financial services) and their customers tested the hypothesized model empirically. The identified proactive market-oriented culture differ clearly from responsive MO and confirm that both dimensions require different organizational cultures. Furthermore, we determine the contingency factors under which a firm should devote resources to increase its proactive MOType: conference paper
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PublicationMarketing Innovation Capability( 2009-09-11)Drawing on an extensive literature review, in-depth interviews with marketing and innovation managers and consulting experience concerning innovations in marketing, a multidimensional construct for marketing innovation capability is established. Furthermore, important organizational antecedents for marketing innovations are identified, which are assumed to encourage marketing innovation capability as well as contribute directly to marketing innovativeness. Empirical data from chief marketing officers will be used to empirically verify that the identified dimensions of marketing innovation capability and its antecedents are an important source of competitive advantage. Additionally, the impact of potential environmental moderators will be testedType: presentation
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PublicationCreating Strategic Options : The Mediating Role of Market-Focused Strategic Flexibility for Innovation PerformanceThis study examines the role of market-focused strategic flexibility in creating a competitive advantage and realizing superior performance. The authors propose that marked-focused strategic flexibility rather mediates than moderates the role of market orientation and technology orientation for innovation. Results from an empirical study of 300 managers from 218 business-to-business firms support this notion. Moreover, the assumption that firms could emphasize market-focused strategic flexibility and de-emphasize market orientation is contradicted. The findings of this study suggest that the two concepts are closely related and that managers have to mind this relationship in resource allocation decisionsType: conference paper
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PublicationType: presentation
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PublicationToward a Greater Understanding of Proactive Customer Orientation: Construct and Scale Development(American Marketing Association, 2011-08-05)Noble, S.This work is devoted to the question of how managers can successfully probe latent needs and uncover future needs of customers, labeled as proactive customer orientation. Based on an observation of specialized proactive customer-oriented departments, expert interviews, workshops with managers, and a meta-analysis of existing research, two dimensions of proactive customer orientation are defined, proactive customer-oriented climate and proactive customer-oriented processes. New scales are developed for the two constructs, and the reliability, validity, and generalizability of the second-order measurement models are supported by an empirical study of 218 business-to-business firms and 202 business-to-consumers firmsType: conference paperJournal: AMA Educators ProceedingsVolume: Volume 22
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PublicationType: presentation
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PublicationType: conference paper