Market orientation and customer satisfaction

Abstract

The aim of this article is twofold, firstly to test and develop a new tool for measuring market orientation, and secondly examining the relationship between market orientation and customer loyalty through Net Promoter Score (NPS). A quantitative study was conducted among customers of Icelandic grocery stores, using an adapted measuring tool that combined MARKOR and questions from the Icelandic Satisfaction Scale. For data collection a company profile was created on Facebook, to be able to use target group advertising that the system offers and thus reach individuals in a distributed age range. A total of 1438 individuals responded to the survey, but after incomplete and / or incorrect answers were deleted, the number of valid answers was 757, that are the bases for the results. Data quality was assessed with SPSS as well as in the processing of results. The main findings are that the quality of the measuring tool seems to be high, with Cronbach Alpha ? = 0.868 and little correlation between the questions, or from 0.366 to 0.591. The results further confirm previous research, that there is a strong connection between market orientation and customer satisfaction, as well as the likelihood of recommendations. This again strongly indicates that the new measuring tool measures what it is intended to measure and is reliable. The results also indicate that market orientation and NPS predict about 72.6% of the variability in customer satisfaction, market orientation, however, has a higher predictive value than NPS for satisfaction. Market orientation and customer satisfaction predict a 63.3% probability that customers will recommend the store to others, but satisfaction has a higher predictive value on NPS. The results indicate that if managers increasingly emphasize on market orientation it will result in greater satisfaction and later customer loyalty.