Market Orientation, Service Quality Perception, and Customer Satisfaction: The Role of Market-sensing Capabilities

Abstract

This article examines the relationship between market orientation, customers’ perception of firms’ service quality (SQ), and their satisfaction in the Nigeria banking sector. The Expectancy Confirmation Theory (ECT) was adopted to shape this study. The population of this study was employees and customers of Nigerian money deposit banks, and specifically, the survey approach was employed using the quantitative paradigm. We employed simple random sampling technique to select employees and customers from each of the 21 banks making a total of 594 samples, and, thereafter, questionnaires were distributed to customers and employees in the banking hall with the permission of banks. Simple linear and hierarchical regressions were used to test our formulated hypotheses and the study analysis found a positive and significant relationship between market orientation and SQ perceptions of customers. Also, market orientation on customer satisfaction (CSAT) is found to be positive and significant. Market-sensing capabilities were found to have significant but weak effect on the relationship between market orientation and SQ perceptions. Market-sensing capabilities were found to have no effect on the relationship between market orientation and CSAT. In other words, market-sensing capabilities were found not to be a moderator of the relationship between market orientation and CSAT.