Asian Journal of Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

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


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

   Subscribe/Renew Journal


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
Subscription Login to verify subscription
User
Notifications
Font Size


  • Denize, S. and Young, L. (2007). Concerning trust and information. Industrial Marketing Management, Vol. 36, pp. 968–982.

  • Ulaga, W. and Eggert, A. (2006). Value-Based Differentiation in Business Relationships: Gaining and Sustaining Key Supplier Status. Journal of Marketing, Vol. 70, No. 1(Jan), pp. 119–136.

  • Morgan, R. M. and Hunt, S.D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, Vol. 58, No. 3, pp. 20-38.

  • http://www.siamindia.com (accessed on various occasions during 2009-2012)

  • http://en.wikipedia.org/wiki/Automobile_industry_in_India (accessed on various occasions during 2009-2012).

  • Doney, P.M. and Cannon, J.P. (1997). An examination of the nature of trust in buyer-seller Relationships. Journal of Marketing, Vol. 61, No. 2, pp. 35-51.

  • Gounaris, S. P. (2006). Trust and commitment influences on customer retention: insights from business-to-business services. Journal of Business Research, Vol. 58, pp.126–140.

  • Penttinen, E and Palmer, J. (2007). Improving firm positioning through enhanced offerings and buyer–seller relationships. Industrial Marketing Management, Vol. 36, pp. 552–564.

  • Chung, J., Jin, B. and Sternquist. B. (2007). The Role of Market Orientation in Channel Relationships When Channel Power is imbalanced. Int. Rev. of Retail, Distribution and Consumer Research, Vol. 17, No. 2, pp. 159-176.

  • Bolton, R. N, Lemon, K.N., and Verhoef, P.C. (2008). Expanding Business-to-Business Customer relationships: Modeling the Customer’s Upgrade Decision. Journal of Marketing, Vol. 72, No. 1, pp. 46–64.

  • Frasquet, M., Cervera, A. and Gil, I. (2008). The impact of IT and customer orientation on building trust and commitment in the supply chain. The International Review of Retail, Distribution and Consumer Research, Vol. 18, No. 3, pp. 343–359.

  • Lohita, R., Bello, D.C. and Porter, C.E. (2009). Building trust in US–Japanese business relationships: mediating role of cultural sensitivity. Industrial Marketing Management, Vol. 38, pp. 239–252.

  • Lai, C., Pai, D., Yang, C. and Lin, H. (2009). The effects of market orientation on relationship learning and relationship performance in industrial marketing: The dyadic perspectives. Industrial Marketing Management, Vol. 38, pp. 166–172.

  • Dwyer, F. R., Schurr, P.H and Oh, S. (1987) Developing Buyer- Seller Relationships. Journal of Marketing, Vol. 51, No. 2, pp. 11-27.

  • Moorman, C., Zaltman, G. and Deshpande, R. (1992). Relationships Between Providers and Users of Market Research: The Dynamics of Trust Within and Between Organizations. Journal of Marketing Research, Vol. 29, No. 3, pp. 314-328.

  • Trout, J. and Ries, A.L. (1972). Positioning Cuts Through Chaos in the Marketplace. In Marketing Classics, Edited by Enis BM, Cox K. and Mokwa. MP. Prentice Hall, NJ. 1995; 8th ed: pp 234- 250.

  • Hamel, G. and Prahalad, C.K. (1989). Strategic intent. Harvard Business Review, Vol. 67, No. 3, pp. 63-76.

  • Hamel, G. (1996). Strategy as revolution. Harvard Business Review, Vol. 74, No. 4, pp. 69-82.

  • Day, G. S. and Montgomery, D. B. (1999). Charting New Directions for Marketing. Journal of Marketing, Vol. 63 (Special), pp. 3-13.

  • Porter, M. E. (1996). What is strategy? Harvard Business Review, Vol. 74, No. 6, pp. 61.

  • Seppanen, R., Blomqvist, K. and Sundqvist, S. (2007). Measuring inter-organizational trust—a critical review of the empirical research in 1990–2003. Industrial Marketing Management, Vol. 36, pp. 249 – 265.

  • Palmatier, R. W., Dant, R. P., Grewal, D. and Evans, K. R. (2006). Factors Influencing the Effectiveness of Relationship Marketing: A Meta-Analysis. Journal of Marketing, Vol. 70 (October), pp. 136–153.

  • Kohli, A. K., Jaworski, B. J. and Kumar, A. (1993). MARKOR: a measure of market orientation. Journal of Marketing Research, Vol. 30, No. 4, pp. 467–477.

  • Faisal, M. N., Banwet, D.K. and Shankar, R. (2006). Mapping supply chains on risk and customer sensitivity dimensions. Industrial Management and Data Systems, Vol. 106, No. 6, pp. 878-895.

  • Deshpande, R., Farley, J.U. and Webster, F.E. (1993). Corporate culture, customer orientation, and innovativeness in Japanese firms: a quadrad analysis. Journal of Marketing, Vol. 57, No. 1, pp. 23–37.

  • Grzeskowiak, S., Blut, M. and Kenning, P. (2007). Market Orientation in Vertical Business Networks. Journal of Marketing Channels, Vol. 4, No. 3, pp. 31-50.

  • Ganesan, S. (1994). Determinants of long-term orientation in buyer-seller relationships. Journal of Marketing, Vol. 58, No. 2, pp. 1.

  • Williamson, O. E. (1985) The economic institutions of capitalism. Free Press, New York.

  • Anderson, E. and Weitz, B. (1992). The Use of Pledges to Build and Sustain Commitment in Distribution Channels. Journal of Marketing Research, Vol. 29, No. 1, pp. 18--34.

  • Arnott, D. C. (2007). Trust–current thinking and future research. European Journal of Marketing, Vol. 41, No. 9and10, pp. 981- 987.

  • Zand, D.E. (1972). Trust and managerial problem solving. Administrative Science Quarterly, Vol. 17, pp. 229-239.

  • Kenning, P. (2008). The influence of general trust and specific trust on buying behavior. International Journal of Retail and Distribution Management, Vol. 36, No. 6, pp. 461-476.

  • Zaheer, A., McEvily, B. and Perrone, V. (1998). Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance. Organization Science, Vol. 9, No. 2, pp. 141-159.

  • Svensson, G. (2005). Mutual and interactive trust in business dyads: condition and process. European Business Review, Vol. 17, No. 5, pp. 411-427.

  • Laaksonen, T., Pajunen, K. and Kulmala, H. I. (2008). Coevolution of trust and dependence in customer–supplier relationships. Industrial Marketing Management. Vol. 37, pp. 910–920.

  • Stanko, M.A., Bonner, J.M. and Calantone, R. J. (2007) Building commitment in buyer–seller relationships: A tie strength perspective. Industrial Marketing Management, Vol. 36, pp. 1094–1103.

  • Anderson, J. C. and Narus, J. A. (1990). A Model Of Distributor Firm And Manufacturer Firm Working Partnerships. Journal of Marketing, Vol. 54, No. 1, pp. 42-58.

  • Palmatier, R. W., Dant, R. P. and Grewal, D. (2007). A Comparative Longitudinal Analysis of Theoretical Perspectives of Inter organizational Relationship Performance. Journal of Marketing, Vol. 71(Oct), pp. 172–194.

  • Sindhav, B.G. and Robert F. Lusch, R.F. (2008). An Identification-Based Model of Supplier-Retailer Communication. Journal of Marketing Channels, Vol. 15, No. 4, pp. 281-314.

  • Saunders, M., Lewis, P. and Thornhill, A. (2009). Research Methods for Business Students. Prentice Hall, Harlow. 5th ed.

  • Pallant, J. (2007). SPSS Survival Manual: A Step by Step Guide to Data Analysis using SPSS for Window. McGraw Hill, Berkshire.


Abstract Views: 789

PDF Views: 0




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

Abstract Views: 789  |  PDF Views: 0

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