Abstract
This study presents a framework to measure and empirically validate the relationship between customer orientation and office space performance. The framework uses two types of customer orientation (i.e., responsive customer orientation and proactive customer orientation) and two types of office space performance metrics (i.e., tenant satisfaction and tenant loyalty). Moreover, the building grade (Grade A and Non-grade A) is incorporated into the framework to assess its moderating effect on the relationships. 380 usable responses were collected from building managers in Grade A and Non-grade A buildings using a questionnaire survey. Partial least squares structural equation modeling was utilized to perform latent variable and multi-group analyses. The findings indicate that proactive customer orientation enhances satisfaction to a level not reached by responsive customer orientation as well as suggesting the applicability of both customer orientations in different scenarios. While proactive customer orientation practices lead to higher satisfaction in Non-grade A office ten-ants, responsive customer orientation practices lead to greater satisfaction in grade A office tenants. The latter tend to be more satisfied with Grade A office and thus loyal. Theoretical and managerial implications are discussed.
Highlights
Sustainable market intelligence can be achieved through customer orientation
By applying customer orientation concepts, the present study aims to investigate whether building owners in the Golden Triangle Kuala Lumpur (GTKL) are able to use customer orientation, including both proactive customer orientation (PCO) and responsive customer orientation (RCO), as strategies to increase customer satisfaction and loyalty
This study considers the effect of office building grade, namely Grade A and Non-grade A, when examining customer orientation’s (RCO and PCO) influence on office space performance
Summary
Sustainable market intelligence can be achieved through customer orientation. To satisfy customers’ needs, customer-focused research and resource allocation efficiency are crucial (Kohli & Jaworski, 1990). Blocker et al (2011) studied the inclusion of both responsive customer orientation (RCO) and proactive customer orientation (PCO) to look into the overall customer orientation concept Such inclusion proves beneficial in value creation. One of which is in the area of professional consultancy by Hair, Gabriel, and Patel (2014) and the other in the area of product development by Blocker et al (2011), have concluded that RCO and PCO can significantly predict performance This is in line with attention-based view (ABV) theory that suggests that value-creation can be enhanced by implementing customer. Does the relationship between customer orientation, tenant satisfaction and tenant loyalty differ between Grade A and Non-grade A office buildings?
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