Dimensions of customer orientation: An empirical investigation of the UK financial services sector

Abstract

The UK financial services industry has experienced a number of sharp discontinuities in its marketing environment in recent years. These have ranged from changing demand patterns to wholesale deregulation and market liberalization. International competition and new entrants exploiting technological innovations have also added to the turbulence in what has been a traditionally parochial and stable sector. Under these conditions, it is to be expected that companies would develop a much sharper customer focus and, if they are to survive and prosper, that they would adopt the core principles of the marketing concept. In this paper, the findings of research which tests this assumption amongst merchant banks, retail banks, insurance companies and building societies are presented. Conclusions are drawn which indicate that there is a growing awareness of the need for a marketing orientation and that some sectors appear to be more customer‐orientated than others at this point in time. Despite this, there is also evidence that in some sectors marketing myopia may be masquerading as marketing orientation and that much work needs to be done to more fully realize the ideals of the marketing concept.