Positive Relationship Between Customer Intensity and Others
There is a positive relationship between Customer Intensity and Proactiveness practices
Customer intensity refers to strategies and measures in place to meet customer preferences (Hauser & Shugan, 1980). Proactiveness is the ability of a company to identify and meet potential customers’ demands. Various articles and research studies indicate that there is a correlation between customer intensity and proactiveness. Lin and Chang (2012, p. 261) indicate that customer intensity is required in the development of new products and services.
Rather than provide products that have no significant value in the life of a customer, directing the company’s resources to efforts aimed at identifying customers’ needs is very important. This move enables the company to develop new products/services; hence becoming the pioneer in the market and this would mean more profits for the company. Customer intensity takes various forms. In a study by Challagalla, Venkatesh & Kohli (2009), proactive post-sales service is associated with not only better customer-level outcomes but also favorable supplier-level outcomes such as new product success rate.
Proactiveness allows the development and regulation of new products, processes, or services ahead of any competition from another company in the market. Marketing orientation helps companies to understand the preferences and needs of their customers and thereby identify an opportunity to penetration and generate concepts that will guide innovation (Morris, Schindehutte & LaForge, 2002, p. 8).
The study by Hacioglu, Eren, Eren & Celikkan (2012, p. 877) revealed that customer intensity is related to proactiveness in achieving the outcome: innovation. Marketing is the avenue through which companies can interact with their clients. Since customers in contemporary society expect companies to address their latent and future needs, categorically, intensifying on appropriate market strategies helps to achieve this cause (Rezvani & Khazaei, 2013). Proactiveness, coupled with intuition, liberalism, experience, and immersion, is utilized by companies to focus on the unmet needs of their customers to enable them to gain an advantage over their competitors.
There is a positive relationship between Customer Intensity and resource Leveraging practices
Notwithstanding the size of a business, customer intensity has a positive relationship to resource leveraging. In a case study by Lahtinen (2013), the firm is ready to risk resources in a bid to meet customer preferences and demands. In this study by Lahtinen (2013, p. 42-44), customers are interested in the heritage of firms, and the firms are willing to risk it all to get project and customer references to improve the credibility of the firm.
According to Pavlou & El Sawy (2010), 40% of customers halt interactions with business firms that have poor customer services. As a result of this, businesses are willing to utilize all their resources to ensure that customers are satisfied. Setia, Venkatesh & Joglekar (2013) highlight the example of Wachovia bank that resolved to a sundown rule in ensuring that its clients’ complaints were resolved almost immediately. Setia, Venkatesh & Joglekar (2013) indicate that companies are adopting the latest technologies to ensure they meet their customer demands in the most efficient manner.
Resource leveraging is dynamic and in the study by Kurgun, Bagiran, Ozeren & Maral (2011), firms may improve their already existing resources such as technical and expertise skills through training. This study indicates that customers are the main source of identifying available opportunities through their feedback. Nonetheless, expertise from the staff is equally paramount. The staff team, coupled with addressing customers’ interests, should be well-equipped with the right hands-on skills to address these concerns; otherwise, efforts to attain success may be futile.
In recent times, customer intensity is an invaluable element to a successful business. To ensure that the business stays close to the customer, it is ready to pull all its resources, processes and activities together is only to be ahead in the acquisition of customer-focused performance. Wang & Lo (2003) highlights that customer intensity is more important than the profit margins received to enable a business to maintain superiority over its competitors.
There is a positive relationship between Value Creation and Proactiveness
This hypothesis is true because the need to add value is associated with an opportunity that leads to the development of innovative products to address the gap. A firm that is constantly seeking new ways to enhance the value of its products is deemed proactive according to Becherer, Haynes & Helms (2008). According to Morris, Schindehutte & LaForge (2002, value creation is not only directed towards a product but is also geared towards the internal aspects of a business.
As a result, Fiore, Niehm, Hurst, Son, Sadachar (2013) indicate that new marketing strategies that incorporate the 4Es (education, esthetic, entertainment, and escapist experience) are associated with value creation. These 4Es achieve this by creating better-informed customers who give more accurate feedback that further enhances proactiveness through the identification of more opportunities.
Value creation is achieved when the company continuously offers solutions to customers (Blocker, Flint, Myers & Slater, 2010). The ability of a firm to proactively address the latent and future needs of its customers is deemed part of a continuous value-creating and relational process, according to Beverland, Farrelly & Woodhatch (2007). The main focus here is the proactiveness of an opportunity; otherwise, it will not create value. The needs and perceptions of customers are continuously changing their preferences and perceptions; hence the reason for is a strong link between proactiveness and value creation (Eggert, Ulaga & Schultz, 2006). Unless a solution is adequately proactive, no value will be derived.
Becherer, R. C., Haynes, P. J., & Helms, M. M. (2008). An exploratory investigation of entrepreneurial marketing in SMEs: The influence of the owner/operator. Journal of Business and Entrepreneurship, 20, (2), 44-63.
Beverland, M., Farrelly, F., & Woodhatch, Z. (2007). Exploring the dimensions of proactivity within advertising agency-client relationships. Journal of Advertising, 36(4), 49–60.
Blocker, C., Flint, D., Myers, M., & Slater, S. (2010). Proactive customer orientation and its role for creating customer value in global markets. J. of the Acad. Mark. Sci., 39, 216-233.
Challagalla, G., Venkatesh, R., & Kohli, A. (2009). Proactive postsales service: When and why does it pay off? Journal of Marketing, 73, 70-87.
Eggert, A., Ulaga, W., & Schultz, F. (2006). Value creation in the relationship life cycle: a quasi-longitudinal analysis. Industrial Marketing Management, 35(1), 20–27.
Fiore, A., Niehm, L., Hurst, J., Son, J., & Sadachar, A. (2013). Entrepreneurial marketing: scale validation with small, independently-owned businesses. Journal of Marketing and Development and Competitiveness, 7(4), 63-86.
Hacioglu, G., Eren, S., Eren, M., & Celikkan, H. (2012). The effect of entrepreneurial marketing on firms’ innovative performance in Turkish SMEs. Procedia-Social and Behavioral Sciences, 58, 871-878.
Hauser, J. & Shugan, S. (1980). Intensity measures of consumer preference. Operations Research, 28(2), 278-320.
Kurgun, H., Bagiran, D., Ozeren, E., & Maral, B. (2011). Entrepreneurial marketing- the interface between marketing and entrepreneurship: A qualitative research on boutique hotels. European Journal of Social Sciences, 26(3), 340-357.
Lahtinen, J. (2013). SME view on project marketing-case study in the context of institutional space business (Master’s thesis). Aalto University.
Lin, L., & Chang, Y. (2012). Innovation, competitive intensity and new product marketing strategy: An empirical study of Taiwan food industry. International Journal of Advanced Scientific and Technical Research, 1(2), 249-265.
Morris, M. H., Schindehutte, M., & LaForge, R. W. (2002). Entrepreneurial marketing: a construct for integrating emerging entrepreneurship and marketing perspectives. Journal of marketing theory and practice, 10(4), 1-19.
Pavlou, P. A., & El Sawy, O. A. (2010). The ‘Third Hand’: IT-Enabled Competitive Advantage in Turbulence through Improvisational Capabilities. Information Systems Research, 21(3), 443-471.
Rezvani, M., & Khazaei, M. (2013). Prioritization of entrepreneurial marketing dimensions: A case of higher education institutions by using entropy. Interdisciplinary Journal of Contemporary Research in Business, 4(12), 297- 306.
Setia, P., Venkatesh, V., & Joglekar, S. (2013). Leveraging digital technologies: How information quality leads to localized capabilities and customer service performance. MIS Quarterly, 37(2), 565-590.
Wang, Y., & Lo, H. (2003). Customer-focused performance and the dynamic model for competence building and leveraging: A resource-based view. Journal of Management Development, 22(6), 483-526.