Drivers of Customer Centricity: Role of Environmental-level, Organization-level and Department-level Variables

Open access

Abstract

Customer centricity is gaining importance as companies are gaining access to increasing amount and quality of individual-level data on identifiable customers. However, efforts to enhance customer centricity often face challenges as they imply organization-wide effort. This paper explores the role of environment-level factors, organization-level factors (in terms of structure, influence and culture) and department-level factors (in terms of integration, power and capabilities) in driving customer centricity of a firm. Results indicate that, while within-category competition stimulates customer centricity, the cross-category competitive intensity limits it. Moreover, marketing competences exhibit highly significant impact which even diminishes the role of inter-departmental integration. Lastly, results show that firms with high level of marketing capabilities and the right culture (in terms of tolerance for failure and availability of slack resources) are likely to exhibit higher levels of customer centricity.

Amit, R., and Zott, C. (2001): „Value creation in E-business“, Strategic Management Journal, 22 (6-7): 493-520.

Christensen Clayton M., Bower Joseph L. (1996): „Customer power, strategic investment, and the failure of leading firms“, Strategic Management Journal, 17 (3): 197-218.

Cui, Anna Shaojie, David A. Griffith, and S. Tamer Cavusgil (2005), „The Influence of Competitive Intensity and Market Dynamism on Knowledge Management Capabilities of Multinational Corporation Subsidiaries“, Journal of International Marketing, 13 (3), 32-53

Day, George S. (1994), “The Capabilities of Market-Driven Organizations”, Journal of Marketing, 58 (October), 37-52.

Day, George S. (1999): „The Market-Driven Organization“, New York: Free Press

Frankenberger Karolin, Weiblen Tobias, Gassmann Oliver (2013): „Network configuration, customer centricity, and performance of open business models: A solution provider perspective“, Industrial Marketing Management, 45 (5): 671-682

Gaurav Rajesh and Shainesh G. (2016): „The Changing Face of Customer Centricity“ in The Palgrave Handbook of Managing Continuous Business Tranformation (ed. Ellermann Horst, Kreutter Peter, and Messner Wolfgang: Palgrave, p. 175-187.

Gebhardt, Gery; Carpenter, Grogory; and Sherry, John (2006): “Creating Market Orientation: A Longitudinal, Multi-firm, Grounded Analysis of Cultural Transformation,” Journal of Marketing, 66 (4), 37-55.

Götz, Oliver, Ann-Kristin Hoelter, and Manfred Krafft (2013), “The Role of Sales and Marketing in Market-Oriented Companies“, Journal of Personal Selling and Sales Management, 33 (4), 353-71.

Grewal, Rajdeep and Patriya Tansuhaj (2001), “Building Organizational Capabilities for Managing Economic Crisis: The Role of Market Orientation and Strategic Flexibility”, Journal of Marketing, 65 (April), 67-80.

Herhausen Dennis, De Luca Luigi, and Weibel Michael (2017): „The interplay between employee and firm customer orientation: Substitution effect and the contingency role of performance-related rewards“, British Journal of Management, forthcoming.

Herhausen, Dennis; De Luca, Luigi; Miceli, Gaetano “Nino”; Morgan, Robert E. and Schögel, Marcus (2017): „When Does Customer-Oriented Leadership Pay Off? An Investigation of Frontstage and Backstage Service Teams“, Journal of Service Research, forthcoming.

Homburg, Christian, Arnd Vomberg, Margit Enke, and Philipp H. Grimm (2015), “The Loss of the Marketing Department’s Influence: Is It Really Happening? and Why Worry?”, Journal of the Academy of Marketing Science, 43 (1), 1-13.

Hui Feng, Neil A. Morgan, and Lopo L. Rego (2015), „Marketing Department Power and Firm Performance“, Journal of Marketing, 79 (September), 1-20

Jaworski, Bernard J. and Ajay K. Kohli (1993), “Market Orientation: Antecedents and Consequences”, Journal of Marketing, 57 (July), 53-70

Kohli, Ajay K. and Bernard J. Jaworski (1990): “Market Orientation: The Construct, Research Propositions,” Journal of Marketing, 54 (2): 1-18

Kumar V., Eli Jones, Rajkumar Venkatesan, and Robert P. Leone (2011), „Is Market Orientation a Source of Sustainable Competitive Advantage or Simply the Cost of Competing?“, Journal of Marketing, 75 (January), 16 -30

Kumar, V. and Denish Shah (2004): “Building and Sustaining Profitable Customer Loyalty for the 21st Century,” Journal of Retailing, 80 (4): 317-329.

Levitt, T. (1962): „Innovation in marketing: New perspectives for profit and growth“, New York: Mc-Graw-Hill.

Marcus, Claudio and Kimberly Collins (2003): “Top-10 Marketing Processes for the 21st Century,” Gartner Group Report SP-20-0671. http://www.gartner.com

Merlo, Omar and Seigyoung Auh (2009), “The Effects of Entrepreneurial Orientation, Market Orientation, and Marketing Subunit Influence on Firm Performance”, Marketing Letters, 20 (3), 295-311.

Merlo, Omar, Bryan A. Lukas, and Gregory J. Whitwell (2012), “Marketing’s Reputation and Influence in the Firm”, Journal of Business Research, 65 (3), 446-52.

Moorman, Christine and Roland T. Rust (1999), “The Role of Marketing”, Journal of Marketing, 63 (Special Issue), 180-97.

Narver, John C. and Stanley F. Slater (1990): “The Effect of a Market Orientation on Business Profitability,” Journal of Marketing, 54 (4): 20-35

Oliver, Richard L. (1999): “Whence Consumer Loyalty?” Journal of Marketing, 63, 33-44.

Rust Roland T., Moorman Christina, and Bhalla Gaurav (2010): „Rethinking Marketing“, Harvard Business Review, January-February, 1-8.

Shah Denish, Rust T. Roland, Parasuraman A., Staelin R. and Day, George S. (2006): „The Path to Customer Centricity“, Journal of Service Ressearch, 9 (2): 113-124

Shah, Denish, Roland T. Rust, A. Parasuraman, Richard Staelin, and George S. Day (2006), “Path to Customer Centricity”, Journal of Service Research, 9 (2), 113-24.

Teece, D. J. (2010): „Business Models, Business Strategy and Innovation“, Long Range Planning, 43 (2-3): 172-194.

Venkatesan, Rajkumar and V. Kumar (2004): “A Customer Lifetime Value Framework for Customer Selection and Resource Allocation Strategy,” Journal of Marketing, 68 (4): 106-125.

Vlaskovits Patrick (2011): “Henry Ford, innovation, and Thet ‘Faster Horse’ Quote“, Harvard Business Review, August.

Vorhies, Douglas W. and Neil A. Morgan (2005), “Benchmarking Marketing Capabilities for Sustainable Competitive Advantage”, Journal of Marketing, 69 (January), 80-94.

Wieseke, Jan, Florian Kraus, Michael Ahearne, and Sven Mikolon (2012), „Multiple Identification Foci and Their Countervailing Effects on Salespeople’s Negative Headquarters Stereotypes“, Journal of Marketing, 2012, 1-20 Vol 76 (May)

Journal Information

Metrics

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 415 323 16
PDF Downloads 269 233 13