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Customer Orientation or Competitor Orientation: Which Marketing Strategy Has a Higher Payoff for Hotel Brands?

Author
Dev, Chekitan S.; Zhou, Kevin Zheng; Brown, Jim; Agarwal, Sanjeev
Abstract
This study of hotels representing thirty-seven brands from fifty-six countries uncovers the market conditions under which investing resources in specific market strategies leads to higher performance. Specifically, the authors identified, for the first time in an international context, the circumstances under which customer orientation (acquisition, satisfaction, and retention of customers) alone has a higher payoff or when simply investing resources on competitor orientation (monitoring, managing, and outflanking competitors) alone is the better strategy. An additional interesting twist, not shown before to the authors’ knowledge, is that in the cases where a customer-based strategy has a higher payoff, focusing on competitors diminishes performance. Similarly, in a market where competitor-based strategy has a higher payoff, a customer focus lowers performance.
Date Issued
2009-02-01Subject
market orientation; customer orientation; competitor orientation; marketing strategy; performance; global; hotel; brand
Rights
Required Publisher Statement: © Cornell University. Reprinted with permission. All rights reserved.
Type
article
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