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Market Orientation-A key Determinant of Developing Trust and Commitment: An Empirical Examination of the Indian Automobile Sector


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1 School of Business, American International University-Bangladesh (AIUB), Dhaka, Bangladesh
     

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Purpose-Despite the critical role of market orientation to develop trust and commitment, it has been observed that the most studies were focused on one/two dimensions of market orientation and were based on the Western market only. This study tries to fill in this gap by investigating the role of market orientation in developing trust and commitment in the Indian automobile industry.

Design/methodology/approach - A good number of past research studies are reviewed to prepare the literature review and to develop the hypotheses. This study is based upon the empirical findings of a quantitative research. Primary data is collected by surveying a self-administered questionnaire to the distributors of motor vehicles in India via e-mail and web link.

Findings - Market orientation has emerged as a vital precursor of trust. The study indicates that trust strongly contributes to develop commitment.

Research limitations/implications -The study extends a direction for new researchers and concludes with suggestions for further research.

Practical implications - The study suggests managers in automotive industry of India to be market oriented to develop trust and commitment with the distributor firms in their relationship marketing strategy. More specifically product quality, marketing and selling support, and after sales service are important factors to be considered by the marketer in the Indian automobile industry in order to gain competitive advantage.

Originality/value -This study focuses on all important dimensions of market orientation and verifies the hypothesized relationship in the context of Indian market.


Keywords

Market orientation, Trust, Commitment, Dyadic business relationship, Competitive advantage. Indian automobile industry
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  • Market Orientation-A key Determinant of Developing Trust and Commitment: An Empirical Examination of the Indian Automobile Sector

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Authors

Partha Prasad Chowdhury
School of Business, American International University-Bangladesh (AIUB), Dhaka, Bangladesh

Abstract


Purpose-Despite the critical role of market orientation to develop trust and commitment, it has been observed that the most studies were focused on one/two dimensions of market orientation and were based on the Western market only. This study tries to fill in this gap by investigating the role of market orientation in developing trust and commitment in the Indian automobile industry.

Design/methodology/approach - A good number of past research studies are reviewed to prepare the literature review and to develop the hypotheses. This study is based upon the empirical findings of a quantitative research. Primary data is collected by surveying a self-administered questionnaire to the distributors of motor vehicles in India via e-mail and web link.

Findings - Market orientation has emerged as a vital precursor of trust. The study indicates that trust strongly contributes to develop commitment.

Research limitations/implications -The study extends a direction for new researchers and concludes with suggestions for further research.

Practical implications - The study suggests managers in automotive industry of India to be market oriented to develop trust and commitment with the distributor firms in their relationship marketing strategy. More specifically product quality, marketing and selling support, and after sales service are important factors to be considered by the marketer in the Indian automobile industry in order to gain competitive advantage.

Originality/value -This study focuses on all important dimensions of market orientation and verifies the hypothesized relationship in the context of Indian market.


Keywords


Market orientation, Trust, Commitment, Dyadic business relationship, Competitive advantage. Indian automobile industry

References