Abstract
Purpose – Customer value orientation, brand value and business ethics are critical variables to developing long-term relationships with customers and achieve sustainable sales growth over time. This research shows how the degree of orientation to customer value by the sales forces, brand value and business ethical standards could significantly influence organizational performance. Design/methodology/approach – The study contributes to an explanatory model through a structural equation model (SEM) and empirical evidence of research applied to 327 executives – occupying medium and high positions in several companies in Chile – who manage their business globally. Findings – The results support the hypothesis that customer value orientation, brand value and business ethics influence organizational performance. Originality/value – This research shows how the degree of orientation to customer value by the sales forces, brand value and business ethical standards could significantly influence organizational performance in a country like Chile.
Highlights
Studies support that Market Orientation and Customer Value help companies achieve sustainable sales growth over time (Álvarez, Santos, & Vásquez, 2005; Jaramillo & Grisaffe, 2009; Kirca, Jayachandran, & Bearden, 2005; Kumar & Petersen, 2005; Macintosh, 2007)
The objectives of this research are as follows: to provide a comprehensive review of literature; to design a descriptive model that connects the series of reliable latent variables (1) Degree of Customer Value Orientation by the Sales Force DCVOSF (2) Brand Value (BV) and (3) Business Ethics (BE) with Organizational
All constructs were measured on a sevenpoint Likert-type scale ranging from ‘1 = strongly disagree’ to ‘7 = strongly agree’. We used this type of scale because interval scales are suitable for measuring attitudes and perceptions of individuals, and the number 7 is used as the optimum grade
Summary
Studies support that Market Orientation and Customer Value help companies achieve sustainable sales growth over time (Álvarez, Santos, & Vásquez, 2005; Jaramillo & Grisaffe, 2009; Kirca, Jayachandran, & Bearden, 2005; Kumar & Petersen, 2005; Macintosh, 2007). This could be true, since companies establish policies and practices to discover the needs of customers and anticipate their requirements, further assisting them in their purchasing decisions so that they perceive greater value in the exchange. The sales force is the company’s “public face”, responsible for communicating its philosophy and orientation (Schwepker & Good, 2004), enhancing its ability to respond and generate information, essential aspects to increase the degree of orientation to customer value by the sales force (Miralles, 2002)
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