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

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  • Ana Isabel Polo Peña
  • Dolores María Frías Jamilena
  • Miguel Ángel Rodríguez Molina

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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  • Ana Isabel Polo Peña & Dolores María Frías Jamilena & Miguel Ángel Rodríguez Molina, 2016. "The Effect of Customer Orientation on Smaller Sized Service Firms and on the Market: A Multilevel Application Embracing Firms and Customers," Journal of Small Business Management, Taylor & Francis Journals, vol. 54(2), pages 566-581, April.
    • Handle: RePEc:taf:ujbmxx:v:54:y:2016:i:2:p:566-581
    DOI: 10.1111/jsbm.12158
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