The Effect of Customer Orientation on Smaller Sized Service Firms and on the Market: A Multilevel Application Embracing Firms and Customers

Abstract

The aim of the present work is to ascertain the importance of customer orientation as a business strategy within the smaller services sector. The adoption of customer orientation is measured from the firm’s point of view, and its effect on financial performance is analyzed. Customer perception is analyzed, using two variables, perceived value and loyalty. The sample consists of 100 Spanish rural tourism enterprises and 572 customers. The findings reveal that customer orientation has a direct effect on perceived value, and perceived value has a direct effect on loyalty toward the firm. Furthermore, customer orientation contributes to the achievement of financial performance.

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Notes on contributors

Ana Isabel Polo Peña

Ana Isabel Polo Peña is Senior Lecturer in the Department of Marketing and Market Research at the University of Granada.

Dolores María Frías Jamilena

Dolores María Frías Jamilena is Reader in the Department of Marketing and Market Research at the University of Granada.

Miguel Ángel Rodríguez Molina

Miguel Ángel Rodríguez Molina is Reader in the Department of Marketing and Market Research at the University of Granada.