Perceptions of Market Orientation from a Consumer and Retailer Perspective

Anthony Kynes

Institute of Technology Carlow

Wexford Campus

Summerhill Road

Wexford

0539185815

anthony.kynes@yahoo.ie

Janette Davies

Institute of Technology Carlow

Wexford Campus

Summerhill Road

Wexford

0539185815

janette.davies@itcarlow.ie

Declan Doyle

Institute of Technology Carlow

Kilkenny Road

Carlow

0539185080

declan.doyle@itcarlow.ie

COMPETITIVE PAPER

TRACK: MARKETING AND SERVICE MANAGEMENT

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Abstract

Perceptions of Market Orientation from a Consumer and Retailer Perspective

Market orientation gaps from consumers and retailers perspectives, and barriers that hinder the

development of effective market orientated policies and procedures, are highlighted in this mixed

methods study.

The literature argues the importance for retailers to ensure they understand and develop good

market orientated policies and procedures. According to Drummond et al, (2000) and Javalgi et

al, (2006), this will create superior value for consumers. Narver and Slater (1990) describe how

elements of market orientation, such as good customer service and satisfaction, are key factors

that can lead to growth and profitability for a business.

The study addresses a core research question: What gaps exist in the perception of market

orientation from a consumer and retailer perspective in town centre stores? Quantitative and

qualitative data from a consumer questionnaire (n=352), a retailer survey (n=100), and

interviews (n=14), generated the data required to answer the research question posed.

The research findings revealed how a number of market orientation gaps exist in areas such as:

staff training levels; how management deal with complaints; the importance of loyalty schemes;

refund and sales promotion policies; and having an online presence. The implications from the

study reveal how a negative impact will ensue which will affect levels of town centre shopping

which, in turn, will result in consumers choosing to travel out-of-town to meet their purchase

needs.

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1 Introduction

1.1 Research Background

The current recessionary times in Ireland have resulted in changing consumer shopping trends

and behaviour. Retailers and service providers in towns throughout Ireland have suffered due to

a lack of consumer confidence in relation to spending and the intense marketing of out-of-town

shopping centres. Research bodies such as Amárach, the National Consumer Agency and the

Centre for Research Studies in University College Dublin are continuously providing

information on the changing shopping habits of Irish consumers. A 2011 report released by the

National Consumer Agency details how, in the current recessionary times, 48% of consumers “...

are constantly looking for better value and are switching providers regularly to achieve this”

(National Consumer Agency, 2011, p. 14).

Retailers in towns throughout Ireland are now seeing the power of the consumer. Shoppers today

are changing what they buy, and more importantly, where they buy goods and services. A 2010

report by Blaney details some of the underlying factors that are influencing changes in consumer

shopping habits. For example, due to reduced levels of disposable income, consumers are

spending more time at the ‘information search’ and ‘evaluation of alternative’ stages of the

‘buyer decision process’ prior to making their purchase decision. Blaney’s report also highlights

how consumers are now realising that they can spend less money and maintain a certain degree

of their previous lifestyles by changing what they buy and where they but it. Out-of-town

shopping centres are giving consumers these options resulting in a major downturn in business

for many main street retailers. This study demonstrates how town centre retailers can counteract

the threats posed by out-of-town shopping centres by adopting more market orientated initiatives

that focus on attracting and retaining customers.

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1.2 Research Aim

This study sought to develop an understanding of gaps in market orientation from a consumer

and retailer perspective. This provides guidance to improve business outcomes. In order to

achieve this aim, a core research questions was posed: What gaps exist in the perception of

market orientation from a consumer and retailer perspective in town centre stores?

2 Literature Review

2.1 Defining Market Orientation

Market Orientation has spawned a high degree of discussion among various authors. Numerous

definitions have been formulated with one of the most prominent described by Drummond and

Ensor (2000, p. 572) citing Narver and Slater (1990). They define market orientation as; “... an

organisational culture and climate that most effectively encourages behaviours that are necessary

for the creation of superior value”. Citing the views of Kohli and Jaworski (1990), Drummond

and Ensor (2000, p. 574) expand this idea further by stating how: “... the collection and

dissemination of market intelligence must also be incorporated into market orientation

strategies”. The same study explains how market orientation contains three main elements:

Intelligence gathering pertaining to customer needs; intelligence dissemination among

departments; and organisational responses to this market intelligence (Drummond et al, 2000, p.

574, citing Kohli and Jaworski 1990).

Citing the parallel views of Narver and Slater (1990), Drummond and Ensor (2000, p. 575)

develop a further suggestion that market orientation is based on:

Customer orientation – understanding customers in order to create superior value

continuously.

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Competitor orientation – understanding the capabilities and aspirations of competitors.

Inter-functional co-ordination – utilisation of all resources to create value.

A 1993 study by Narver and Slater found the existence of four important linkages between

market orientation and business performance (see figure 2.1). Their study illustrates a substantial

positive relationship between market orientation and customer service; customer service and

customer satisfaction; customer satisfaction and customer retention and sales growth; and the

latter two and profitability.

Growth

Figure 2.1 Market Orientation and Performance: Four Linkages

Source Narver and Slater (1993)

Within figure 2.1, the elements of market orientation, customer service and customer satisfaction

are all components that ‘fit’ into the framework of this study as they can influence consumer

perceptions of retail businesses which in-turn can generate a positive response of store patronage

or a negative response of travelling to out-of-town shopping venues. Customer orientation is an

important element of market orientation (Narver and Slater, 1993). Key factors, relating to

customer orientation from a retailers’ perspective, are now outlined.

2.2 Delivering Customer Value through Loyalty Schemes and Refund Policies

A 1998 study by O’Malley discusses the issue of how loyalty schemes are an important element

of a market orientated business. This type of policy can benefit businesses and deliver good

Market Orientation

Customer Service

Customer Satisfaction

Profitability

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customer value as it rewards loyal customers. Citing Uncles (1994), O’Malley describes how;

“Consumers are motivated to participate in such schemes because, fundamentally, most people

like to get something for nothing”. The same author explains how this ideal is supported by

empirical evidence in a 1997 study by Evans et al. The study involved the use of group

discussions where it was agreed that: “... if a customer already patronises a particular store, then

it makes sense to join the scheme” (O’Malley, 1998, p. 51).

Additional aspects of loyalty schemes are benefits that can be harnessed by generating

information on issues such as revealing who your best customers are; what they buy; and how

often they purchase goods and services. O’Malley (1998) explains how information held on

individual customers can be used to build up an accurate picture of a consumer’s lifestyle. This

can aid providers in areas of consumer targeting.

A study by Yi and Jeon (2003, p. 230), discusses how: “... a loyalty program is a marketing

program that is designed to build customer loyalty by providing incentives to profitable

customers”. Citing Downing and Uncles (1997), Yi and Jeon (2003, p. 230) also explain how a

loyalty program is often based on several propositions, such as the following:

Customers may want more involving relationships with products they purchase.

A proportion of these customers show a tendency to be loyal.

They are a profitable group (i.e. the 20/80 law).

It is possible to reinforce these customers’ loyalty through loyalty schemes

Good refund policies are additional element of a good market-orientated business. A ‘no hassle’

and ‘a money back guarantee’ are important assurances consumers will seek when shopping.

This statement is supported by Kim and Kang (1997, p. 37) who outline the importance for

retailers to adopt a “no hassle returns policy”. They believe this is an important retail attribute

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that consumers will seek when shopping. It is clear, from the fore-mentioned comments, that

loyalty programmes and ‘ease of return’ polices can help develop and maintain a loyal customer

base. Citing O’Brien and Jones, (1995), Yi and Jeon, (2003, p. 230) explain how: “Loyal

customers can become ‘business builders’ by buying more, paying premium prices and bringing

in new customers by referrals”.

2.3 Dealing with Customer Complaints

The literature revealed how good market-orientated businesses have the correct procedures in

place to deal with customer complaints. This statement is supported by the views of Kotler et al,

(2005) who describe how dealing correctly with customer complaints can create an opportunity

to remedy poor service which, in turn, can win back customers. Palmer (2005, p. 289) describes

how: “In truly market-orientated organisations, complaints analysis can form a useful pointer to

where the process of service delivery is breaking down”. In addition, Palmer (2005, p. 91)

explains how the importance of ‘service recovery’ is a key element in the process of meeting

customer expectations: “A customer who is dissatisfied and does not report this dissatisfaction to

the service provider may never come back and, worse still, may tell friends about the bad

experience”. Kotler et al, (2005, p. 287) expand on Palmer’s comments by explaining how: “...

on average a satisfied customer will tell three people about a good product experience, a

dissatisfied customer gripes to eleven people”. Therefore, it is clear the most important step in

the service recovery process is to find out, as soon as possible, when a service has failed to meet

customers’ expectations.

Palmer (2005, p. 92) outlines how: “... front-line service personnel must have the ability to

empathise with customers”. In addition, he explains how, in order to achieve this goal, staff

must be empowered to do so by management. This empowerment must include authorisation by

management that they can: “... deviate from the scheduled service programme and, where

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necessary, use resources at their discretion in order to achieve service recovery” (Palmer, 2005,

p. 92).

2.4 The Importance of Good Staff Training Levels

The quality of in-store services, as an additional issue that can determine a store’s level of

market orientation, was also highlighted in this study. The literature revealed how it can be a

major factor in influencing increased consumer patronage. This fact is explained by Thang and

Tan (2003, p. 195) who, citing the views of Reynolds and Beatty (1999), describe how: “… the

aim of in-store service is to strengthen store-consumer relationship, increase consumers’ pleasure

of shopping in the store and encourage their repeat visits”. A key component of good in-store

service involves good levels of staff training. Key elements of good staff training would include:

providing information on merchandise; responding to customer queries; guidance to merchandise

location; and good attendance by sales personnel (Thang and Tan, 2003, p. 195, citing Lindquist,

1974).

2.5 The Importance of Competitive Pricing and Sales Promotion Policies

Another important aspect of good market orientated polices involved the aspects of competitive

pricing and good sales promotion policies. Yan and Eckman’s (2009, p. 138) describe the

importance of attractive pricing and sales promotions as key factors that influence the frequency

of shopping in a town’s main street shopping areas. A study by Chandon, Wansink and Laurant

(2000, p. 3) explain how sales promotions may enable consumers to upgrade to higher quality

goods by reducing the price of what are usually unaffordable items (the ‘quality’ benefit). This

will often lead to a higher price being paid by consumers. In addition, sales promotions can

enhance consumers’ self-perceptions of being ‘smart’ or ‘good’ shoppers and provide an

opportunity to reaffirm their personal values (the ‘value-expression’ benefit).

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2.6 The Importance of having an Online Presence

Details from the literature also revealed how an online presence is a key factor that town retailers

must consider as part of their market orientated strategies. According to Roberts (1998, p.17),

technology affects how consumers learn about different buying options. Online shopping,

influence where, what, when and how consumers buy goods and services. Day (1994) explains

how: “the most distinctive capabilities of market oriented organisations include the ability to

develop the processes of market sensing and customer linking”.

2.7 Literature Conclusions

The literature highlighted the subject of market orientation and how its adoption can influence

consumer behaviour. While market orientation has internal focus elements the importance of

balancing these fundamentals with a customer focused external orientation is clearly

demonstrated within the literature.

The key factors for retailers to be customer orientated, and thus market orientated, have been

detailed. An investigation of these factors is merited thus the following research question is

posed: What gaps exist in the perception of market orientation from a consumer and retailer

perspective in town centre stores?

3 Methodology

3.1 Introduction

The aim of this mixed methods study was to develop an understanding of gaps in market

orientation from a consumer and retailer perspective. The author preferred a method that

involved an ‘inductive’ stance. A mixed methods methodology, which utilised methods such as

surveys and structured interviews, was adopted in order to fit the purposes of the research.

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3.2 Choice of Sampling Techniques

A non-probability judgement sampling method was utilised for the two surveys conducted in this

study simply due to the fact that the selection principles were based on personal judgement that

the elements were representative of the population under investigation. The author adopted a

pragmatic approach in selecting a purposive non-probability sampling method when deciding

who should be involved in the in-depth interviews. The main reason for this choice lay in the fact

that the author wanted to interview persons who were relevant to the research questions posed in

this study. Teddie and Tashakkori (2009, p. 170) describe how probability sampling techniques

are generally used in quantitative studies whereas purposive sampling techniques are mainly

involved in qualitative studies.

3.3 Data Collection Methods

In order to collect the necessary data to answer the research questions posed in this study, three

strands of data information were utilised: one qualitative and two quantitative. The qualitative

data was collected using the following methods:

14 one-to-one interviews that included consumers, town retailers, a town

strategist/decision maker and David Fitzsimons of Retail Excellence Ireland.

The quantitative data was collected using the following method:

A door-to-door consumer self-completion survey. A total of 420 persons were surveyed.

A self-completion retailer survey involving 100 retailers.

The two surveys consisted of a group of Likert item queries which could be compared for

analysis.

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3.4 Response Rate for Public and Retailer Questionnaires

The author distributed 420 self-completion public questionnaires on a door-to-door basis that

encompassed various urban areas and 10 rural districts within a ten mile radius of a medium

sized Irish town. The divide between rural and urban districts was 65% urban; 35% rural. A total

of 55 people refused to participate or were not contactable. This resulted in a return of 365

questionnaires. However, on examination of these responses 13 questionnaires were deemed to

be unsuitable for analysis due to the non-completion of certain questions. This reduced the

number of usable questionnaires to 352.

3.5 Testing of Quantitative Data for Validity and Reliability

Quantitative data sets were then subjected to rigorous statistical testing. Non-parametric tests

were utilised in the analysis. Test types included Mann-Whitney U and Kruskal-Wallis. Initially,

data was screened for outliers and levels of kurtosis and skewness. In relation to outliers, no

extreme cases were found.

The views of Tabachnick and Fidell (2001, p. 74), as citied by Pallant (2005, p. 52), are

significant regarding this study. They outline how, with reasonably large samples (200+), “... the

risk of kurtosis and skewness is reduced and will therefore not make a substantive difference in

the analysis”. Therefore, as the sample size of the public survey consisted of 252 respondents,

the risk of kurtosis and skewness was diminished and so did not interfere with the analysis.

3.6 Testing of Qualitative Data for Validity and Reliability

The qualitative data consisted of 14 one-to-one interviews. Each interview was recorded and

transcribed into text. Once this task was complete the author used thematic analysis to establish

patterns, themes and relationships between the various elements within the data (Miles and

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Huberman, 1994). The prime purpose of collecting and analysing this data was to expand and

‘fortify’ elements of the quantitative surveys. This aided with the development of good ‘data-

rich’ findings.

The author believed this study fulfilled the necessary assessment criteria required to meet the

notions of trustworthiness and authenticity. In particular, the author felt this research would

result in the enhancement of catalytic and tactical authenticity (Bryman, 2008), due to the

generation of stimuli that will empower town stakeholders to engage in common strategies that

would benefit all going forward.

4 Findings

4.1 Introduction

The objective of this study was to ascertain what gaps exist in the perception of market

orientation from a consumer and retailer perspective in town centre stores. In order to achieve

this aim, it was important to establish what levels of market orientation currently exist in town

centre stores. This was achieved by conducting a ‘consumer v provider’ comparison of

viewpoints. A summary of the principle findings relating to this exercise are illustrated in table

4.1.

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Table 4.1 Consumer v Provider Comparison

4.2 The Importance of having an Online Presence

The first issue discussed, from table 4.1, involves an analysis of data relating to the importance

of having an online presence for retailers/service providers. The analysis of data from the public

survey revealed the majority of consumers, particularly those in the 18-24 age groups, like to

interact with businesses in this manner. A Kruskal-Wallis test confirmed this statistic: (p<.05;

Mean 18-24=96.69; Mean=168.83). It is also important to note that these particular age groups

tend to be frequent users of social media networks. Therefore, they create new opportunities for

customer-focused businesses. Day (1994) highlighted this point by explaining how: “... the most

distinctive capabilities of market oriented organisations include the ability to develop the

processes of market sensing and customer linking”.

Consumer v Provider Comparison % Agree/Disagree

Consumer

% Agree/Disagree

Provider

An online presence is important 53.5% Agree 67.7% Agree

Staff always look clean and tidy 73.8% Agree 100% Agree

Staff are well-trained 40.1% Disagree 96.8% Agree

Staff are always approachable 51.6% Agree 100% Agree

Complaints are dealt with efficiently 55.8% Agree 96.7% Agree

Management do not respond to customer needs 49.2% Agree 81.6% Disagree

Loyalty schemes are important 60% Agree 53.2% Agree

Town stores have good refund policies 56.3% Agree 91.9% Agree

Store prices are competitive 50.6% Agree 95.2% Agree

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David Fitzsimons of Retail Excellence Ireland participated in the one-to-one interviews. He

expressed the viewpoint that retailers do not pay enough attention to marketing their business

online: “Google say 80% of all consumer decisions made involve online research, so it’s an

absolute necessity to have a web presence”.

Of the one third of retailers/service providers who stated they do not have an online presence, the

principle reason given for not having this feature in place was a feeling that the development of a

website is too expensive to justify the expenditure involved. For town retailers/service providers,

it is clear that the consequences of not encouraging these types of capabilities may impede the

overall development of good market orientated strategies within their businesses.

4.3 Perceptions of Staff and Management in Town Stores

Another key issue discussed involved a comparison of consumer and retailer/service provider

perceptions of staff and management in town stores. Retailers/services providers were in

unanimous agreement that their staff always look clean and tidy. This viewpoint also emanated

from the majority of retailers and consumers interviewed on a one-to-one basis. The general

perception of consumer survey participants was also positive with the majority, 73.8%, agreeing

with this notion. These facts ‘tie in’ well with the view of Liaw (2007) citing Baker et al. (2002)

which highlight how ‘store employee cues’ such as employee appearance can strongly influence

consumers purchase decisions and store patronage. Consequently, it is imperative for any

business owner in a town, to ensure their staff’ always look well-presented as they are usually

the first point of contact with members of the public. The consequences of not doing so may

result in damage to their business/brand image.

Good staff training is another important aspect for any business dealing with members of the

public. This point was highlighted by Thang and Tan (2003) who described how good attendance

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by store staff members is an important aspect of quality in-store service that impacts on

consumers’ shopping behaviour. A slight majority of consumer survey participants, 40.1%, felt

staff’ in town stores are not well-trained. A consumer who was interviewed expressed the

viewpoint that staff members in larger stores need more training. She believed staff in family

owned businesses to be friendlier and better trained.

It is clear that a large ‘gap’ exists in the viewpoints of consumers and retailers/service providers

in relation to this issue as store owners in the town were virtually unanimous, (100%), in

expressing how well-trained they perceive their staff members to be. For retailer/service

providers, the consequences of ignoring this ‘service gap’ will weaken store-consumer

relationships which are a vital component in motivating repeat visits to their stores.

In contrast to issue of staff training, a majority of consumers, 52%, expressed the belief that

staff’ in town stores are always approachable. Store owners were unanimous in their opinions

relating to this issue. The importance of approachability was highlighted in the literature by

Palmer (2005) who outlined how front-line staff must have the ability to empathise with

customers. This is a key issue for management of retail businesses, as the consequences of a lack

of approachability can be a serious barrier in the development of good market orientation

practices. This point was highlighted in the literature in a study by Chaganti and Sambharya

(1987).

4.4 Dealing with Customer Complaints

An important element of any business is their ability to deal with customer complaints. It is clear

from an analysis of consumer viewpoints that a majority, 55.8%, believe customer complaints

are dealt with in an efficient manner by management and staff in town stores. Consumers

interviewed on a one-to-one basis, concurred with the aforementioned findings. In contrast, a

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large majority, 96.7%, of retailers/service providers expressed levels of agreement that they deal

with complaints in a similar efficient manner. Retailers/service providers should note that

although the majority of consumers expressed levels of agreement, in relation to this issue,

almost one-in-three respondents expressed levels of disagreement. Although this is a relatively

small percentage of consumers, Kotler et al. (2005) explain how a satisfied customer will tell

three others about their good experience, while a dissatisfied customer will tell eleven others

about their bad experience. Retailers should also note that Kotler et al. (2005) highlighted how

dealing with customer complaints creates an opportunity for companies to find a remedy for poor

service. Palmer (2005) made a similar observation and added that dealing with customer

complaints in a proper manner is a trait of good market-orientated businesses.

4.5 Responding to Customer Needs

Fulfilling the ‘needs’ and ‘wants’ of consumes is imperative if a retailer/service provider wants

to attract and retain customers. Unfortunately, the analysis of survey data revealed how a

majority of respondents, 49.2%, feel management in town stores do not respond to their needs

and wants. In stark contrast, 81.6% of retailers/service providers expressed levels of

disagreement that their business reacts slowly to changes in customer preferences. This

highlights the existence of a large perception ‘gap’ between the viewpoints of consumers and

town retailer/service providers in relation to this issue. It is difficult to justify this level of

response from retailers/service providers when, for example, previous analysis within this study

revealed almost one third of businesses surveyed stated they have no presence online.

This is a clear case of not meeting customer needs. The importance of fulfilling consumer

requirements was highlighted in the literature by Rogan (2007) who pointed out how a need for a

product will become a motive once it is aroused to a sufficient level of intensity. It is also a basic

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factor contained in good store image management and the development of good market-

orientated strategies. For town retailers the obvious consequences of not meeting customer

needs, is a loss of customer patronage and a gain for competitors in alternative shopping venues

who may be fulfilling consumer requirements.

4.6 The Importance of Loyalty Schemes

Data also revealed how a majority of consumer survey respondents, 60%, feel the availability of

loyalty schemes is an important factor in influencing their shopping behaviour. This statistic

links well with findings from a 1998 study by O’Malley who described how loyalty schemes are

an important aspect of any business seeking to generate information on what and how often their

best customers are purchasing goods and services. Retailers should note that consumers may be

seeking more involving relationships with products they purchase. Female consumers, in

particular, seem to value this type of shopping incentive with 66% expressing levels of

agreement compared to 47% of males. Consumers interviewed also expressed the viewpoint that

loyalty schemes are an important incentive in attracting them to support a town centre business.

Details from the retailer/service provider survey revealed how, in total, 26% of respondents felt

loyalty schemes were not applicable to their business model. Of the remaining 74%, a majority

of 53% stated they had such a scheme in place, while 47% stated they have no such scheme to

reward loyal clientele. These statistics, when compared to the viewpoints of consumers, reveal a

marked difference in the perceptions of ‘providers’ and ‘consumers’. For retailers/service

providers, the consequences of ignoring this ‘service gap’ may result in consumers switching

their patronage to businesses that offer such incentives. This point links with comments made by

O’Malley (1998) which reveals how businesses that have even a basic ‘spurious’ loyalty

programme, can attract customer for a certain period of time.

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4.7 The Importance of Good Refund Policies

The analysis of data regarding refund policies revealed how this type of customer-orientated

strategy is important to the majority of consumers with 56.3% expressing levels of agreement.

Importantly, a large majority, 92%, of retailers/service providers stated they have good refund

policies in place. A Kruskas-Wallis test produced a significant result involving the ‘social status’

variable: (p<.05; Mean unemployed=90.18; Mean engaged in home duties=140.94). The results

of this test may indicate that unemployed persons, who generally have lower levels of disposable

income, value the security of knowing good refund policies exist in case any future problems

might arise with the goods they have purchased. This is a very important factor in building good

customer retention and development of a loyal customer base. This point links well with the

views of Yi and Joen (2003), citing O’Brien and Jones (1995), who explained how loyal

customers can become ‘business builders’ by referring new customers, buying more goods and

paying premium prices. Consumers expect this type of incentive to be part of the purchase

experience. Therefore, the consequences of not having a good ‘money back/no hassle guarantee’

in place may result in a permanent loss of customers and possible legal problems for the

business.

4.8 The Importance of Competitive Pricing Policies

It is fair to say that competitive pricing has become a key issue for retailers/service providers in

these tough economic times. Yan and Eckman (2009) described how price is one of seven

important store characteristics that influence consumer patronage decisions. The one common

denominator, that seems to exist among these consumers, is the goal of finding good value at a

competitive price. The majority of consumers may be achieving this objective as findings

revealed 51% believe stores prices in town retail stores are competitive. Once again, female

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respondents expressed the highest levels of agreement, 54.6%, with males expressing the highest

levels of disagreement, i.e. 36.7%. The difference in these viewpoints may be explained by the

fact that women tend to shop more than men so perhaps they are more ‘price aware’. A Kruskal-

Wallis test involving the ‘age groups’ variable produced a significant result: (p=<.05; Mean

65=83.78: Mean 25-44=133.37). The results of this test revealed the 25-44 age groups expressed

the highest levels of disagreement in relation to this issue. Retailers should take note of this

group as the majority of public survey respondents were in this particular age span.

In comparison to the views of consumers, when retailers/service providers were asked if they

fully understood the importance of competitive pricing policies, a large majority, 95%, expressed

levels of agreement. This may demonstrate that retailers/service providers are well-focused on

the issue of price. However, a study by Doctor Patrick Lynch, of the Waterford Institute of

Technology, highlights how businesses that continuously focus on cutting price can be

establishing a barrier to business differentiation. He outlined how ‘being different’ should be

‘worth something’ to retailer/service providers. However, in the current economic climate, it is

difficult for retailers to differentiate themselves in this way as consumers are focusing more on

the price of goods due to falling levels of disposable income.

5 Conclusions and Recommendations

5.1 Conclusions

This section of the study summarises conclusions and recommendations relating to the research

questions posed. Consumer v provider perceptions, highlighted in the findings section, revealed

the existence of negative perceptions in relation to levels of staff training and approachability.

Therefore, it is fair to conclude a large ‘perception gap’ exists between the views of consumers

and providers concerning these two issues. This is negating the stimuli that develop positive

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perceptions concerning levels of customer orientation in town stores. In addition, these negative

perceptions are weakening store-consumer relationships which may result in town consumers

choosing the option of travelling out-of-town to alternative shopping venues.

Serious implications also exist for management of town stores due to the majority of consumers

who expressed the view that management do not respond to their needs. Although a high

percentage of management disagreed with this notion it is clear that an additional ‘perception

gap’ has emerged concerning this issue.

Management and staff must also deal with customer complaints in an efficient customer-

orientated manner. Although the majority of public survey respondents and consumers

interviewed expressed the view that staff and management do so, one should note how 44% of

consumers surveyed chose not to agree with this notion. The literature highlighted the number of

people a dissatisfied customer can influence. The fact that a high percentage of retailers/service

providers believe they deal with customer complaints in an efficient manner leads one to

conclude that the focus should change to harnessing information that will establish the reasons

why customers feel their complaints are not being dealt with in a proper manner.

This can provide an opportunity to remedy poor service and aid with the restoration of customer

loyalty and confidence.

Findings revealed two-thirds of retailers/service providers surveyed have a presence online.

Importantly, the majority of public survey respondents and consumers interviewed, expressed the

view that they like to interact with businesses offering this type of online interaction.

This is an important factor as consumers are now looking for value due to large differences

between brand features and prices. One way they can achieve this is by devoting more time to

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the ‘information search’ and ‘evaluation of alternatives’ stages of the buying decision process

through online searches. With this thought in mind, the one-third of retailers/service providers

surveyed, who do not have an online presence, should realise that, although it may require an

outlay of time and money, investing in customer engagement through websites and social media

outlets will reap the benefits of increased sales and consumer patronage.

It is clear a majority of town shoppers value the benefits of loyalty schemes with female

shoppers, in particular, showing the greatest levels of interest in this type of store incentive. In

contrast, the majority of town retailers/service providers are not availing of the benefits of this

type of consumer-orientated initiative. Therefore, it is fair to conclude that retailers, who do not

have this type of incentive in place, are missing the chance to harness information on customers

that will aid with the development of targeted promotions. It is also fair to assume that, having

established the perceived value of this type of consumer incentive, negative opinions of town

retail businesses’ who do not involve themselves in this form of customer engagement, will

ensue. This will, in turn, will lead to negative patronage responses by shoppers.

The analysis of data also highlights the importance of good refund policies. The overall

consensus was that this type of consumer orientated initiative is valued by both consumer and

provider in a town. It is fair to assume that this type of product/service guarantee for consumers

assists with the creation of positive perceptions of stores in a town. This should help to develop

and maintain positive consumer responses in relation to town shopping.

This study has also demonstrated how the emphasis today has shifted to capabilities that enable a

business to consistently deliver superior value to customers. A business is market oriented when

its culture is systematically and entirely committed to the continuous creation of superior

customer value (Narver and Slater, 1990). Specifically, this entails collecting and co-ordinating

21

information on customers, competitors, and other significant market influencers such as

regulators and suppliers to use in building that customer value (Drummond et al, 2000, citing

Narver and Slater, 1990).

Having discussed the various factors where differences exist in the viewpoints of consumers and

retailers, it is clear a lack of understanding exists among retailers in relation to the needs of

consumers. An obvious communication ‘gap’ between retailers and consumers seems to exist.

The implications for the owners/mangers of town retail outlets who fail to rectify various ‘gaps’

in customer orientation, are clear. Barriers, that will hinder the growth of good customer

orientated policies, will develop as the implementation of these strategies and policies are

contingent on the behaviour and knowledge of these individuals (Kohli and Jaworski, 1990, as

cited by Drummond et al, 2000).

5.3 Recommendations

In order to eliminate the viewpoint ‘gaps’ that exist between consumers and retailers, this study

recommended the following strategies:

Although two thirds of retailers/service providers have an online presence that allows consumer

interaction with their businesses, a focus should be placed on the remaining third that do not

have this type of customer orientated initiative in place. Local Trade Associations and the

Chambers of Commerce should concentrate on aiding this particular retailer segment as some of

these retailers believe they did not have the necessary computer skills to provide this type of

consumer service. This barrier can be removed by placing an emphasis on how training for

members of this segment will establish better levels of computer competence resulting in

improved levels of communication with customers.

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It is also recommended that store owners and managers ensure levels of staff training improve in

order to eliminate negative consumer perceptions that are creating a barrier in the development

of good store-consumer relationships. The solution to these problems could involve additional

training either in-house or involving the use of professional trainers. Managers and store owners

must also develop a better understanding of the needs and wants of consumers and develop the

capabilities and strategies that will enable them to respond quickly to changes in consumer

preferences. One way of achieving this goal is to ensure a business has a loyalty scheme

available as it is a good method of gathering good consumer-based information. Once again this

can be achieved by additional consumer orientated training and through the medium of good

market research that focuses on ‘listening’ to customer requirements.

This study had demonstrated how gaps in customer orientation, and thus market orientation, will

have implications for town retailers and their customers. Narver and Slater, (1993), highlighted

in the literature how customer orientation is an important element of market orientation and how

understanding customers, in order to create superior value continuously, is imperative.

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