Chilean wine producer market orientation: comparing MKTOR versus MARKOR

Abstract

PurposeThe purpose of this paper is to assess the degree of market orientation of a sample of Chilean wine producers; to compare two different instruments for assessing market orientation in this context; and to comment on the possible cultural sensitivities of these two measurement instruments developed from a North American context but applied in culturally dissimilar contexts.Design/methodology/approachIn total, 69 CEO and Marketing Managers, representing approximately one quarter of the total number of wineries in Chile, completed a face‐to‐face survey questionnaire that utilized both the Narver and Slater MKTOR and the Kohli and Jaworski MARKOR market orientation scales. SmartPLS was used to carry out the measurement and structural analysis.FindingsResults reveal that more than half of surveyed Chilean wine producers are market oriented, with 65 per cent congruence between the two scales. Cluster analysis also reveals three distinct segments and sets of characteristics that distinguish market oriented from non‐market oriented wineries. MKTOR and MARKOR scales show similar level of predictive power when using subjective or perceptual measures of performance as dependent variables. However, the MARKOR scale is found to be better in explaining changes in the dependent variable when the latter is measured by actual sales and gross margins (objective performance). National cultural dimensions (power distance and uncertainty avoidance) have an impact within organizations in the implementation of a market‐oriented strategy in a consistent and coordinated manner.Research limitations/implicationsThe MARKOR scale appears to have superior predictive validity and to be more practical for measuring market orientation since it explains the change in dependent variables to greater degree when performance is measured with objective as opposed to the perceptual measures.Practical implicationsChilean winery managers should devote significant attention to market sensing activities and competitive intelligence gathering. The competitive and national cultural environment plays an important role in moderating the relationship between market orientation and a firm's business performance. They may also wish to consider becoming involved in various trade organisations, as well as collaborative partnerships with academic institutions, to enhance their competitive intelligence and technological competences.Originality/valueThis paper is the first to illustrate the market orientation of Chilean wine producers, and one of only a few to discuss the impact of national cultural values on market orientation.