The Relationship between Proactive and Responsive Market Orientation, Seven Marketing Activities Lever (7As), and Expectation of Service: An Empirical Evidence from 3-5-star Hotels Business in Thailand
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Published:
Dec 23, 2019
Keywords:
Proactive Market Orientations, Responsive Market Orientation Seven Marketing Activities Levers (7As), Expectation of Service
Main Article Content
Abstract
The research investigated the relationship between proactive market orientation (PMO), responsive market orientation (RMO) and seven marketing activities levers (7As). The study focus on hotel business in Thailand. The informants are marketing executive from hotel business of Thailand. The sample size totals 255 hotel businesses in Thailand (128, 3-star hotels and 127, 4-5-star hotels). Structural equation model tested hypotheses. The findings reveal that relationships between PMO and RMO have substantial positive impact on 7As. However, 4-5-star hotels, the findings indicate that RMO and anticipation activities not have significant relationship. In conclusion, RMO, PMO, and 7As play as an essential in creating marketing strategy process in the hotel business. Therefore, the hotel manager should choose appropriate PMO, RMO, and 7As for the hotel. Furthermore, researchers should consider reexamining other industries to compare the findings and gains for greater generalizability in the future. Limitation and suggestion for future research are also highlighted.
Article Details
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References
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Homburg, C., Workman, P., & Jensen, O. (2002). A Configurational Perspective on Key Account Management. Journal of Marketing, 66(2), 38–60.
Hult, M. (2011). Toward a Theory of the Boundary-Spanning Marketing Organization & Insights from 31 Organization Theories. Journal of the Academy of Marketing Science, 39(4), 509–536.
Jaworski, J., & Kohli, K. (1993). Market Orientation: Antecedents & Consequences. Journal of
Marketing, 57(3), 53.
Johnson, L., Sohi, S., & Grewal, R. (2004). The Role of Relational Knowledge Stores in Interfirm Partnering. Journal of Marketing, 68(3), 21–36.
Kirca, H., Jayachandran, S., & Bearden, O. (2005). Market Orientation: A Meta-Analytic Review & Assessment of Its Antecedents & Impact on Performance. Journal of Marketing, 69(2), 24–41.
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695–711.
Likert, R. (1961). New Patterns of Management. New Patterns of Management.
López Fernández, C., & Serrano Bedia, M. (2004). Is The Hotel Classification System a good Indicator of Hotel Quality? An Application in Spain. Tourism Management, 25(6), 771–775.
Marsh, H., Balla, J., & Hau, K.-T. (1996). An Evaluation of Incremental Fit Indices: A clarification of Mathematical & Empirical Properties. In Advanced Structural Equation Modeling: Issues and Techniques.
Morgan, A., Vorhies, W., & Mason, H. (2009). Market Orientation, Marketing Capabilities, and Firm Performance. Strategic Management Journal, 30(8), 909–920.
Moore, S., Notz, I, & Flinger, A. (2013). The Basic Practice of Statistics (6th ed.). New York, NY: W. H.
Moorman, C., & Rust, T. (1999). The Role of Marketing. Journal of Marketing, 63, 180.
Moorman, C., & Day,S. (2016). Organizing for Marketing Excellence. Journal of Marketing, 80(6), 6–35.
Narver, C., Slater, F., & MacLachlan, L. (2004). Responsive & Proactive Market Orientation and New Product Success. The Journal of Product Innovation Management, 21(5), 334–347.
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Oswald, M., Brettel, M., & Engelen, A. (2012). How Departments’ Decision-Making Influence & Interdepartmental Dynamics Relate to Two Facets of Strategic Market Orientation. Journal of Strategic Marketing, 20(6), 483–507.
O’Sullivan, D., & Abela, V. (2007). Marketing Performance Measurement Ability and Firm Performance. Journal of Marketing, 71(2), 79–93.
Pine, R., & Phillips, P. (2005). Performance Comparisons of Hotels in China. International Journal of Hospitality Management, 24(1), 57–73.
Ramaswami, N., Srivastava, K., & Bhargava, M. (2009). Market-Based Capabilities & Financial Performance of Firms: Insights into Marketing’s Contribution to Firm Value. Journal of the Academy of Marketing Science, 37(2), 97–116.
Schatzel, K., & Calantone, R. (2006). Creating Market Anticipation: An Exploratory Examination of the Effect of Preannouncement Behavior on a New Product’s Launch. Journal of the Academy of Marketing Science, 34(3), 357–366.
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Slacks-Based Measure. Asia-Pacific Journal of Operational Research, 22(04), 487–512.
Tellis, J., Prabhu, C., & Chandy, K. (2009). Radical Innovation across Nations: The Preeminence of Corporate Culture. Journal of Marketing, 73(1), 3–23.
Turner, C., & Carlson, L. (2003). Indexes of Item-Objective Congruence for Multidimensional Items. International Journal of Testing, 3(2), 163-171.
Verhoef, C., & Leeflang, S. (2009). Understanding the Marketing Department’s Influence within The Firm. Journal of Marketing, 73(2), 14–37.
Vorhies, W., & Morgan, A. (2003). A Configuration Theory Assessment of Marketing Organization Fit with Business Strategy & Its Relationship with Marketing Performance. Journal of Marketing, 67(1), 100–115.
Voola, R., & O’Cass, A. (2010). Implementing Competitive Strategies: The Role of Responsive & Proactive Market Orientations. European Journal of Marketing, 44(1/2), 245–266.
Wang, H., Chen, Y., & Chen, C. (2012). Total Quality Management, Market Orientation & Hotel Performance: The Moderating Effects of External Environmental Factors. International Journal of Hospitality Management, 31(1), 119–129.
Wernerfelt, B. (1984). The Resource-Based View of the Firm. Strategic Management Journal,
3 (June 1982), 171–180.
Wieseke, J., Ahearne, M., Lam, K., & Dick, V. (2009). The Role of Leaders in Internal Marketing. Journal of Marketing, 73(2), 123–145.
Recommended Two-Step Approach. Psychological Bulletin.
Atuahene-Gima, K., Slater, F., & Olson, M. (2005). The Contingent Value of Responsive and Proactive Market Orientations for New Product Program Performance. Journal of Product Innovation Management, 22(6), 464–482.
Bahadori, M., Yaghoubi, M., Javadi, M., & Rahimi, A. (2015). Study of Relationship between the Organizational Structure and Market Orientation from the Viewpoint of Nurse Managers. Journal of Education and Health Promotion, 4(March), 15.
Ballantyne, D., & Varey, J. (2008). The Service-Dominant Logic and the Future of Marketing. Journal of the Academy of Marketing Science, 36(1), 11–14.
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
Bentler, M., & Chou, P. (1987). Practical Issues in Structural Modeling. Sociological Methods & Research.
Black, A., & Boal, B. (1994). Strategic Resources: Traits, Configurations & Paths to Sustainable
Competitive Advantage. Strategic Management Journal, 15(2S), 131–148.
Blair, H., Barns, M., Sirkin, K., & Stewart, W. (2016). Delivering to the Marketing Accountability Mandate. Accountable Marketing: Linking Marketing Actions to Financial Performance.
Brady, K., & Cronin, J. (2001). Customer Orientation: Effects on Customer Service Perceptions and Outcome Behaviors. Journal of Service Research, 3(3), 241–251.
Board of Investment of Thailand. (2016). A Guide to the Board of Investment 2016. https://doi.org/www.boi.go.th.
Bodlaj, M., Coenders, G., & Zabkar, V. (2012). Responsive & Proactive Market Orientation & Innovation Success under Market & Technological Turbulence. Journal of Business Economics and Management, 13(4), 666–687.
Boomsma, A., & Hoogland, J. (2001). The Robustness of LISREL Modeling Revisited. Structural Equation Models: Present and Future.
Chandy, K., & Tellis, J. (1998). Organizing for Radical Product Innovation: The Overlooked Role of Willingness to Cannibalize. Journal of Marketing Research, 35(4), 474.
Chand, M., & Katou, A. (2007). The Impact of HRM Practices on Organizational Performance in the Indian Hotel Industry. Employee Relations, 29(6), 576–594.
Chang, Z., & Chen, J. (1998). Market Orientation, Service Quality & Business Profitability: A Conceptual Model & Empirical Evidence. Journal of Services Marketing, 12(4), 246–264.
Churchill, A. (1979). A Paradigm for Developing Better Measures of Marketing Constructs. Journal of Marketing Research, 16(1), 64.
Cordon, C., Vollmann, E., & Hald, S. (2005). Managing Attraction in Customer-Supplier Partnerships, (December), 1–29.
Deshpandé, R., & Farley, U. (1998). Measuring Market Orientation: Generalization and Synthesis. Journal of Market Focused Management, 2(3), 213–232.
Deshpande, R., Farley, U., & Webster, E. (1993). Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis. Journal of Marketing, 57(1), 23.
Devi Juwaheer, T., & Lee Ross, D. (2003). A Study of Hotel Quest Perceptions in Mauritius. International Journal of Contemporary Hospitality Management, 15(2), 105-115.
Diamantopoulos, A., Siguaw, J., & Siguaw, A. (2000). Introducing LISREL: A Guide for the Uninitiated. Introducing LISREL: A Guide for the Uninitiated.
Enz, A. (2008). Creating a Competitive Advantage by Building Resource Capability: The Case of Outback Steakhouse Korea. Cornell Hospitality Quarterly.
Fornell, C., & Larcker, F. (1981). Evaluating Structural Equation Models with Unobservable Variables & Measurement Errors. Journal of Marketing Research, 18(1), 39–50.
Garson, D. (2012). Testing Statistical Assumptions. Blue Book Series.
Gebhardt, F., Carpenter, S., & Sherry, F. (2006). Creating a Market Orientation: A Longitudinal, Multifirm, Grounded Analysis of Cultural Transformation. Journal of Marketing, 70(4), 37–55.
Grewal, R., & Tansuhaj, P. (2001). Building Organizational Capabilities for Managing Economic Crisis: The Role of Market Orientation & Strategic Flexibility. Journal of Marketing, 65(2), 67–80.
Gupta, S., Lehmann, R., & Stuart, A. (2004). Valuing Customers. Journal of Marketing Research, 41(1),
7–18.
Hair, F., Black, C., Babin, J., Anderson, E., & Tatham, L. (2006). Multivariate Data Analysis. (Sixth Edit).
NJ: Prentice Hall.
Hardy, J. (2014). Competitive Marketing Strategy: A Best Practices Examination of Convention Hotels in San Francisco. British Journal of Psychiatry, 205(01), 76–77.
Haryanto, T., Haryono, T., Sri, H., & Sawitri, R. (2017). International Review of Management and Marketing Market Orientation, Learning Orientation & Small Medium Enterprises Performance: The Mediating Role of Innovation. International Review of Management and Marketing, 7(1), 484–491.
Homburg, C., & Pflesser, C. (2000). A Multiple-Layer Model of Market-Oriented Organizational Culture: Measurement Issues & Performance Outcomes. Journal of Marketing Research, 37(4), 449–462.
Homburg, C., Workman, P., & Jensen, O. (2002). A Configurational Perspective on Key Account Management. Journal of Marketing, 66(2), 38–60.
Hult, M. (2011). Toward a Theory of the Boundary-Spanning Marketing Organization & Insights from 31 Organization Theories. Journal of the Academy of Marketing Science, 39(4), 509–536.
Jaworski, J., & Kohli, K. (1993). Market Orientation: Antecedents & Consequences. Journal of
Marketing, 57(3), 53.
Johnson, L., Sohi, S., & Grewal, R. (2004). The Role of Relational Knowledge Stores in Interfirm Partnering. Journal of Marketing, 68(3), 21–36.
Kirca, H., Jayachandran, S., & Bearden, O. (2005). Market Orientation: A Meta-Analytic Review & Assessment of Its Antecedents & Impact on Performance. Journal of Marketing, 69(2), 24–41.
Kotler, P., & Armstrong, G. (2010). Principles of Marketing | Pearson.
Kohli, K., & Jaworski, J. (1990a). Market Orientation: The Construct, Research Propositions. Journal of Marketing, 54(2), 1.
Lamore, R., Berkowitz, D., & Farrington, A. (2013). Proactive/Responsive Market Orientation & Marketing-Research & Development Integration. Journal of Product Innovation Management, 30(4),
695–711.
Likert, R. (1961). New Patterns of Management. New Patterns of Management.
López Fernández, C., & Serrano Bedia, M. (2004). Is The Hotel Classification System a good Indicator of Hotel Quality? An Application in Spain. Tourism Management, 25(6), 771–775.
Marsh, H., Balla, J., & Hau, K.-T. (1996). An Evaluation of Incremental Fit Indices: A clarification of Mathematical & Empirical Properties. In Advanced Structural Equation Modeling: Issues and Techniques.
Morgan, A., Vorhies, W., & Mason, H. (2009). Market Orientation, Marketing Capabilities, and Firm Performance. Strategic Management Journal, 30(8), 909–920.
Moore, S., Notz, I, & Flinger, A. (2013). The Basic Practice of Statistics (6th ed.). New York, NY: W. H.
Moorman, C., & Rust, T. (1999). The Role of Marketing. Journal of Marketing, 63, 180.
Moorman, C., & Day,S. (2016). Organizing for Marketing Excellence. Journal of Marketing, 80(6), 6–35.
Narver, C., Slater, F., & MacLachlan, L. (2004). Responsive & Proactive Market Orientation and New Product Success. The Journal of Product Innovation Management, 21(5), 334–347.
Nunnally, J., & Bernstein, I. (1994). Psychometric Theory, 3rd ed, 1994. McGraw-Hill, New York, 3, 701.
Oswald, M., Brettel, M., & Engelen, A. (2012). How Departments’ Decision-Making Influence & Interdepartmental Dynamics Relate to Two Facets of Strategic Market Orientation. Journal of Strategic Marketing, 20(6), 483–507.
O’Sullivan, D., & Abela, V. (2007). Marketing Performance Measurement Ability and Firm Performance. Journal of Marketing, 71(2), 79–93.
Pine, R., & Phillips, P. (2005). Performance Comparisons of Hotels in China. International Journal of Hospitality Management, 24(1), 57–73.
Ramaswami, N., Srivastava, K., & Bhargava, M. (2009). Market-Based Capabilities & Financial Performance of Firms: Insights into Marketing’s Contribution to Firm Value. Journal of the Academy of Marketing Science, 37(2), 97–116.
Schatzel, K., & Calantone, R. (2006). Creating Market Anticipation: An Exploratory Examination of the Effect of Preannouncement Behavior on a New Product’s Launch. Journal of the Academy of Marketing Science, 34(3), 357–366.
Schindehutte, M., & Morris, H. (2001). Understanding Strategic Adaptation in Small Firms. International Journal of Entrepreneurial Behavior & Research, 7(3), 84–107.
Schumacker, R., & Lomax, R. (2011). The Beginners Guide to Structural Equation Modeling. PSY633: Structural Equation Modeling.
Slater, F., & Narver, C. (1998). Customer-Led & Market-Oriented: Let’s Not confuse the two. Strategic Management Journal, 19(10), 1001–1006.
Srihadi, F., Hartoyo, D., & Soehadi, W. (2015). Brand Equity Model of Jakarta as an International Tourist Destination. Interdisciplinary Behavior & Social Sciences. In Proceedings of the 3rd International Congress on Interdisciplinary Behavior & Social Science. pp (pp. 421-425).
Sriva Srivastava, K., Shervani, A, & Fahey, L. (1998). Assets & Shareholder Value : A ramework for Analysis. Journal of Marketing, 62(1), 2–18.
Sun, S., & Lu, M. (2005). Evaluating the Performance of the Taiwanese Hotel Industry Using a Weight
Slacks-Based Measure. Asia-Pacific Journal of Operational Research, 22(04), 487–512.
Tellis, J., Prabhu, C., & Chandy, K. (2009). Radical Innovation across Nations: The Preeminence of Corporate Culture. Journal of Marketing, 73(1), 3–23.
Turner, C., & Carlson, L. (2003). Indexes of Item-Objective Congruence for Multidimensional Items. International Journal of Testing, 3(2), 163-171.
Verhoef, C., & Leeflang, S. (2009). Understanding the Marketing Department’s Influence within The Firm. Journal of Marketing, 73(2), 14–37.
Vorhies, W., & Morgan, A. (2003). A Configuration Theory Assessment of Marketing Organization Fit with Business Strategy & Its Relationship with Marketing Performance. Journal of Marketing, 67(1), 100–115.
Voola, R., & O’Cass, A. (2010). Implementing Competitive Strategies: The Role of Responsive & Proactive Market Orientations. European Journal of Marketing, 44(1/2), 245–266.
Wang, H., Chen, Y., & Chen, C. (2012). Total Quality Management, Market Orientation & Hotel Performance: The Moderating Effects of External Environmental Factors. International Journal of Hospitality Management, 31(1), 119–129.
Wernerfelt, B. (1984). The Resource-Based View of the Firm. Strategic Management Journal,
3 (June 1982), 171–180.
Wieseke, J., Ahearne, M., Lam, K., & Dick, V. (2009). The Role of Leaders in Internal Marketing. Journal of Marketing, 73(2), 123–145.