Marketing research, market orientation and customer relationship management: a framework and implications for service providers

Abstract

Purpose

As service organizations continue to expand internationally, the need to be able to understand consumers in faraway places is increasing. Marketing research is a key mechanism through which service companies understand their current as well as potential customers. As service organizations contemplate the global marketplace, there is increasing demand for managers to understand customer behavior in multiple countries. This article aims to discuss the importance of market research information in developing a market orientation and its impact on international service organizations.

Design/methodology/approach

Extant literature is reviewed and discussed pertaining to the interrelationships between market research, market orientation and customer relationship management (CRM)‐related issues. Conceptual models are presented to illustrate the interrelationships between these streams of research.

Findings

Several anecdotal and case examples are used to illustrate the essential linkages between market research, market orientation, and CRM. These include the Ritz Carlton Hotel Company, Federal Express, Hallmark Cards, Harrah's Entertainment and, most notably, VeriFone.

Practical implications

The key implications revolve around the notion that in today's hyper‐competitive markets service firms must be market‐oriented in order to be competitive, and that market research plays a critical role in generating the needed data on which a market orientation can be developed and implemented, which, in turn, can enhance the practice of CRM.

Originality/value

The article promises to help service providers address the challenge of generating and using market research data to develop a market orientation and a corresponding CRM program.

Citation

Javalgi, R.(R).G., Martin, C.L. and Young, R.B. (2006), "Marketing research, market orientation and customer relationship management: a framework and implications for service providers", Journal of Services Marketing, Vol. 20 No. 1, pp. 12-23. https://doi.org/10.1108/08876040610646545