The effect of relationship marketing orientation on business performance in a service‐oriented economy

Although a large body of research theoretically asserts a positive association between relationship marketing orientation (RMO) and business performance, a valid measure of RMO has not yet been proposed and systematic analysis of its effect on business performance has thus far not been possible. This paper addresses some conceptual and measurement issues related to the study of RMO and its impact on business performance in a service context. It first reviews the concept of RMO and its important dimensions. Next, a measurement scale with acceptable reliability and validity is developed to capture the dimensions of RMO. In turn, analysis of data shows that RMO is positively and significantly associated with sales growth, customer retention, market share, ROI, and overall performance. The implications of these findings are discussed and the limitations of the study as well as future research directions are addressed.

[1]  Raymond P. M. Chow,et al.  Market orientation and business performance , 2003 .

[2]  K. Möller,et al.  Relationship Marketing Theory: Its Roots and Direction , 2000 .

[3]  Alan C.B. Tse,et al.  Relationship marketing the Chinese way , 2000 .

[4]  Terrence H. Witkowski,et al.  Personal Bonding Processes in International Marketing Relationships , 1999 .

[5]  Michael Harker,et al.  Relationship marketing defined? An examination of current relationship marketing definitions , 1999 .

[6]  J. Dawes.  The Relationship between Subjective and Objective Company Performance Measures in Market Orientation Research: Further Empirical Evidence , 1999 .

[7]  Relationship marketing: the route to marketing efficiency and effectiveness☆ , 1997 .

[8]  D. Ford.  Understanding business markets : interaction, relationships and networks , 1997 .

[9]  Paul G. Patterson,et al.  A Typology of Service Firms in International Markets: An Empirical Investigation , 1995 .

[10]  David T. Wilson.  An integrated model of buyer-seller relationships , 1995 .

[11]  Joel R. Evans,et al.  The relationship marketing process: A conceptualization and application , 1994 .

[12]  Evert Gummesson,et al.  Broadening and Specifying Relationship Marketing , 1994 .

[13]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[14]  Justin Tan,et al.  Environment-Strategy Relationship and its Performance Implications: An Empirical Study of Chinese Electronics Industry , 1994 .

[15]  Bernard J. Jaworski,et al.  Market Orientation: Antecedents and Consequences , 1993 .

[16]  A. Parasuraman,et al.  Introduction to special section , 1993 .

[17]  A. Parasuraman,et al.  Building a New Academic Field-- The Case of Services Marketing , 1993 .

[18]  Jule B. Gassenheimer,et al.  Marketing Exchange Transactions and Relationships , 1992 .

[19]  F. Manu.  Innovation Orientation, Environment and Performance: A Comparison of U.S. and European Markets , 1992 .

[20]  David Shani,et al.  Exploiting Niches Using Relationship Marketing , 1992 .

[21]  B. Golden,et al.  SBU strategy and performance: The moderating effects of the corporate‐SBU relationship , 1992 .

[22]  Robert F. DeVellis,et al.  Scale Development: Theory and Applications. , 1992 .

[23]  A. Parasuraman,et al.  Marketing Services: Competing Through Quality , 1991 .

[24]  Robert C. Blattberg,et al.  Interactive Marketing: Exploiting the Age of Addressability , 1991 .

[25]  Lee D. Dahringer.  Marketing Services Internationally: Barriers and Management Strategies , 1991 .

[26]  C. Grönroos.  The Marketing Strategy Continuum: Towards a Marketing Concept for the 1990s , 1991 .

[27]  Leonard L. Berry,et al.  Five imperatives for improving service quality , 1991 .

[28]  Jakki J. Mohr,et al.  Communication Strategies in Marketing Channels: A Theoretical Perspective , 1990 .

[29]  M. Erramilli,et al.  Entry Mode Choice in Service Industries , 1990 .

[30]  James A. Brunner,et al.  The Role of Guanxi in Negotiations in the Pacific Basin , 1990 .

[31]  James A. Narus,et al.  A Model of Distributor Firm and Manufacturer Firm Working Partnerships , 1990 .

[32]  John C. Narver,et al.  The Effect of a Market Orientation on Business Profitability , 1990 .

[33]  Susan P. Douglas,et al.  Examining Generic Competitive Strategy Types in U.S. and European Markets , 1989 .

[34]  Stephen W. Brown,et al.  A Gap Analysis of Professional Service Quality , 1989 .

[35]  S. Douglas.  The Ranking of Masters Programs in International Business – Comment , 1989 .

[36]  James A. Brunner,et al.  Negotiations in the People's Republic of China: , 1989 .

[37]  C. Grönroos.  Defining Marketing: A Market‐Oriented Approach , 1989 .

[38]  Christian Grönroos,et al.  New Competition in the Service Economy: The Five Rules of Service , 1988 .

[39]  J. Pearce,et al.  Planned patterns of strategic behavior and their relationship to business-unit performance† , 1988 .

[40]  J. J. Cronin,et al.  An Examination of the Relative Impact of Growth Strategies on Profit Performance , 1988 .

[41]  E. Gummesson.  The new marketing—Developing long-term interactive relationships , 1987 .

[42]  Robert W. Ruekert,et al.  Marketing's Role in the Implementation of Business Strategies: A Critical Review and Conceptual Framework , 1987 .

[43]  J. Pearce,et al.  The impact of grand strategy and planning formality on financial performance , 1987 .

[44]  G. L. Shostack,et al.  Service Positioning through Structural Change , 1987 .

[45]  K. Hwang.  Face and Favor: The Chinese Power Game , 1987, American Journal of Sociology.

[46]  P. M. Podsakoff,et al.  Self-Reports in Organizational Research: Problems and Prospects , 1986 .

[47]  G. R. Ferris,et al.  Personality and salesforce selection in the pharmaceutical industry , 1986 .

[48]  B. Chakravarthy.  Measuring strategic performance , 1986 .

[49]  J. Zaichkowsky.  Measuring the Involvement Construct , 1985 .

[50]  C. Freeman.  The economics of innovation , 1985 .

[51]  C. Craig,et al.  Examining Performance of U.S. Multinationals in Foreign Markets , 1983 .

[52]  T. Levitt.  After the Sale is Over... , 1983 .

[53]  Edward M. Cross,et al.  Use of the Binomial Theorem in Interpreting Results of Multiple Tests of Significance , 1982 .

[54]  H. Håkansson.  International Marketing and Purchasing of Industrial Goods: An Interaction Approach , 1982 .

[55]  Gilbert A. Churchill.  A Paradigm for Developing Better Measures of Marketing Constructs , 1979 .

[56]  Gerald R. Brong,et al.  Interactive electronic media , 1978 .

[57]  J. Nunnally,et al.  Psychometric Theory: NY. , 1978 .

[58]  J. Scott Armstrong,et al.  Estimating nonresponse bias in mail surveys. , 1977 .

[59]  G. Zaltman,et al.  Marketing, society, and conflict , 1976 .

[60]  T. Lebra,et al.  Japanese patterns of behavior , 1976 .

[61]  Gilbert A. Churchill,et al.  Marketing Research: Methodological Foundations , 1976 .

[62]  Peter L. Nacci,et al.  Interpersonal attraction and the reciprocation of benefits. , 1973 .

[63]  Howard B. Lee,et al.  Foundations of Behavioral Research , 1965 .

[64]  L. Cronbach.  Essentials of psychological testing , 1960 .

[65]  A. Gouldner.  THE NORM OF RECIPROCITY: A PRELIMINARY STATEMENT * , 1960 .

[66]  B. Malinowski,et al.  Crime and Custom in Savage Society , 1927, Nature.