IMPLEMENTING RELATIONSHIP MARKETING: THE ROLE OF INTERNAL AND EXTERNAL CUSTOMER ORIENTATION

by

T.F.J. Steyn*, S.M. Ellis** and F.A.A. Musika*

*WorkWell: Research Unit for People, Policy & Performance
School of Entrepreneurship, Marketing and Tourism Management
Potchefstroom Campus
North West University[1]

**Statistical Consultation Service
Potchefstroom Campus
North West University

Paper presented at the European Institute for Advances Studies in Management (EIASM) Workshop on Relationship Marketing, EIASM, Brussels, Belgium, 27 – 28 January 2004

IMPLEMENTING RELATIONSHIP MARKETING: THE ROLE OF INTERNAL AND EXTERNAL CUSTOMER ORIENTATION

ABSTRACT

Developing an internal and external customer orientation will facilitate the implementation of relationship marketing principles by businesses. Relationship marketing highlights the need for an external customer orientation, which in turn raises the need for customer-oriented employees. Employees will only be customer-oriented if an internal customer orientation is evident in the business.

Four constructs pertaining to the internal customer orientation of small- to medium-sized textile retailers in the North-West Province were identified. After checking for internal consistency, effect sizes were determined for these constructs analysing the practical significance of employees’ as opposed to management’s opinion on the underlying constructs. Similarly, four constructs referring to the external customer orientation of the same businesses were identified. The four identified constructs underpinning an external customer orientation were also checked for internal consistency and the practical significance of customers’ as opposed to management’s opinion on the underlying constructs was determined through effect sizes. It was found that the identified businesses lack both an internal and external customer orientation.

Recommendations are made to improve internal customer orientation for the... [continues]

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