Journal Article

Customer-led and market-oriented: let's not confuse the two

Slater, Stanley F., Narver, John C.

1998

Overview

Christensen and Bower (1996) report the results of a study of how customer power contributes to the failure of leading firms during a period of industry discontinuity. They conclude that developing a customer orientation appears not to be wise advice under these conditions. However, this conclusion is contradicted by long-standing theory and recent research in marketing. In this commentary we distinguish between two forms of 'customer orientation' that are frequently confused. The first, a customer-led philosophy, is primarily concerned with satisfying customers' expressed needs, and is typically short term in focus and reactive in nature. The second, a market-oriented philosophy, goes beyond satisfying expressed needs to understanding and satisfying customers' latent needs and, thus, is longer term in focus and proactive in nature. Based on theory and substantial evidence, the advice to become market-oriented appears sound regardless of the market conditions a business faces.

• Publisher: John Wiley & Sons, Ltd,John Wiley and Sons,Wiley,John Wiley,Wiley Periodicals Inc
• Subject: Applied sciences / Business innovation / Business structures / Consumer behaviour / Consumerism / corporate culture / Customer relations / Customer satisfaction / Customers / Discontinuity / discontinuous change / Economics / Exact sciences and technology / Firm modelling / General aspects / innovation / Innovations / Market orientation / Market strategy / Marketing / Marketing strategies / Markets / Operational research and scientific management / Operational research. Management science / Organization theory / Philosophy / Pragmatism / Product development / Product innovation / Research and development / Research Notes and Communications / Retail banking / Service industries / Strategic management / Success