The effect of market orientation on performance efficiency of the hotel industry

Abstract

This research assesses how the value of the customer perspective, market orientation and competitive advantages will affect organizational efficiency in hotel industry. All the two to five stars hotel of Tehran, Hamedan, Mashhad and Mazandaran province were selected as the population of this research via census method, which is a total of 206 hotels. Structural equation modeling was used to test eleven hypotheses. Research findings show that if hoteliers to understand the value of their customer's perspective properly, they will take both customer-oriented and competitor-oriented policies due to their situation. When customers are price sensitive, hotel managers tend to develop competitor- orientation. In addition the higher level of customer orientation and competitor orientation of a hotel can develop competitive advantages based on differentiation and innovation in the market and finally the advantages of market differentiation and innovation in the market, leading to greater market efficiency (Greater customer satisfaction and market share) this would lead to financial returns (profits) of the hotels.

Keywords

• Market orientation
• Customer orientation
• Competitor orientation