Customer Centricity and Firm Operational Performance: A Study of Fast Moving Consumer Goods’ Firms in Ogun State, Nigeria.
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Jun 15, 2023
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Abstract
This study examines customers centricity and firm operational performance in Fast Moving Consumer Goods (FMCGs) in Ogun State, Nigeria. The study is premised on three customer-centric elements or dimensions: customer integration, internal integration, and external integration. A descriptive survey research design was employed in the study, using the maximum variance sampling technique. A structured questionnaire was administered on customers of selected FMCGs in Ogun State, Nigeria. Employing the Ordinary Least Squares (O.L.S) technique, the results revealed that customers' centricity significantly affects the operational performance of FMCGs in Nigeria. The findings also reveal that external integration and customers' integration are the most significant dimensions of customers' centricity. It is recommended that organisations should pay more attention to their customers' integration and external integration since these two dimensions are the most significant customers' centricity dimensions explaining FMCGs operational performance in Nigeria
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Keywords
Customer CentricityCustomers' IntegrationExternal IntegrationFMCGsJel Classification: L25, L67, M31.
References
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• Otley, D. (1999). Performance management: a framework for management control systems research. Management Accounting Research, 10, 363-382.
• Paulus H. A and Andreki, R Y (2014). Is E-Marketing the Future of Marketing Field. American Journal of Industrial and Business Management 4 (7), July.
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• Robert, M. (2018). Cohort turnover and operational performance: The July phenomenon in teaching hospitals. Technology and Operations Management, 21(3), 45-61.
• Rust, R.T., Lemon, K.N. and Zeithaml, V.A. (2004). Return on Marketing: Using Customer-Equity to Focus Marketing Strategy. Journal of Marketing, 68, 109-127.
• Sandra C. J and Don I (2012). Pandemic influenza: A global challenge for social marketing marketing. Health Vol.4 No.10A, November .
• Shah, D., Rust, R.T., Parasuraman, A., Staelin, R. and Day, G.S. (2006). The path to customer-centricity. Journal of Service Research, 9(2), 113-124.
• Sheth, J. N., Sisodia, R. S. and Sharma, A. (2000). The antecedents and consequences of customer-centric marketing. Journal of the Academy of Marketing Science, 28, 55–66.
• Smirnova, M. M., Rebiazina, V. A. and Frösén, J. (2018). Customer orientation as a multidimensional construct: Evidence from the Russian markets. Journal of Business Research. 86, 457–467.
• Stoppel, E. and Roth, S. (2017). The conceptualisation of pricing schemes: From product-centric to customer-centric value approaches. Journal of Revenue and Pricing Management, 16(1), 76-90.
• Vlašić, G. and Tutek, E. (2017). Drivers of customer centricity: role of environmental-level, organisation-level and department-level variables. Zagreb International Review of Economics and Business, 20(2), 1-10.
• Voropai, O. (2018). Customer centric marketing strategy for universities.Scientific Papers NaUKMA. Economics. 3, 28-32.
• Wind, J. and Rangaswamy, A. (2001). Customerization: The next revolution in mass customization. Journal of Interactive Marketing, 15, 13–32.
• Yongyue Jin (2018). Study on Marketing Strategy System of SMEs under Internet Background. American Journal of Industrial and Business Management 8 (3), 634-644.
• Dr. Ogunmuyiwa, Michael Segun is a Senior Lecturer in the Department of Business Administration, Faculty of Administration and Management Sciences, Olabissi Onabanjo University, Ago-Iwoye, Nigeria. He has a brief stint in Sona Breweries PLC before joining the academia in 1996. Apart from teaching at both undergraduate and postgraduate levels, he has supervised over 500 undergraduate Projects and not less than 100 M.Sc and M.B.A Dissertations as well as some Ph.D Theses. In addition, he has more than 70 publications in Books, Journals and Learned Conferences both locally and internationally. Dr. M.S Ogunmuyiwa is happily married with Children.
• Agbaje, Ifedayo Oladele is a Doctor of Philosophy (Ph.D) student in the Department of Business Administration, Faculty of Administration and Management Sciences, Olabissi Onabanjo University, Ago-Iwoye, Nigeria. He is currently undergoing his research work towards the acquisition of his Ph.D
• Abdu, M. and Jibir, A. (2018). Determinants of firms innovation in Nigeria. Kasetsart Journal of Social Sciences, 39(3), 448–456.
• Abdullatif, M, Abdel-Maksoud, A.and Basheikh (2008). Operational performance measures used and contemporary management practices deployed in manufacturing firms: The case of Kingdom of Saudi Arabia.
o Retrieved from https://www.researchgate.net/publication/265074191
• Ahmed, H., and Azim, M. (2015). Earnings Management Behavior: A Study on the Cement Industry of Bangladesh, International Journal of Management, Accounting and Economics, 2(4), 265-276.
• Alireza, M, Taher, R.A, Tahmoures, H.G, Fereshteh, F and, Shadi, H (2014). A Survey of the Effect of Social Media Marketing on Online Shopping of Customers by Mediating Variables Journal of Service Science and Management, 7(5), October.
• Al-Zyadat, A. Y. and Al-Zyadat, A. (2018). Examining new product financial performancethrough marketing intelligence quality, customer interaction capabilities and customer-centric commitment on Jordan's micro retail fashions. International Journal of Marketing Studies, 10(2), 95-108.
• Bhimani (1993). Performance measures in U.K. manufacturing companies: the state of play. Management Accounting, December, p 20-23.
• Bii, M.E., and Wanyoike, D. M. (2014). The influence of customer centric strategic approach for competitive advantage on customer satisfaction in CFC Stanbic Bank Kenya Limited. International Journal of Economics, Commerce and Management, 2(11),21.
• Chen, J.-S., Weng, R.-H.-H. and Huang, C.-L. (2018). A multilevel analysis of customer engagement, its antecedents, and the effects on service innovation. Total Quality Management and Business Excellence, 29(3–4), 410–428.
• Chovancová, M., Osakwe, C. N., and Ogbonna, B. U. (2015). Building strong customer relationships through brand orientation in small service firms: An empirical investigation. Croatian Economic Survey, 17(1), 111–138.
• Crecelius, A. T., Lawrence, J.M., Lee, J.Y., Lam, S. K. and Scheer, L.K. (2018). Effects of channel members’ customer-centric structures on supplier performance. Journal of the Academy of Marketing Science, October. DOI:10.1007/S11747-018-0606-5
• Crecelius, A. T., Lawrence, J. M., Lee, J. Y., Lam, S. K. and Scheer, L. K. (2019). Effects of channel members' customer-centric structures on supplier performance. Journal of the Academy of Marketing Science, 47(1), 56-75.
• Frankenberger, K., Weiblen, T. and Gassman, O. (2013). Network configuration, customer centricity, and performance of open business models: A solution provider perspective. Industrial Marketing Management, 42(5), 671–682.
• Galbraith, J. R. (2011). Designing the customer-centric organisation: A guide to strategy, structure, and process.Hoboken, New Jersey, United States: John Wiley and Sons.
• Habel, J., Kassemeier, R., Alavi, S., Haaf, P., Schmitz, C. and Wieseke, J. (2019). When do customers perceive customer centricity? The role of a firm's and salespeople's customer orientation. Journal of Personal Selling and Sales Management, 1-18.
• Hemel V.D.C. and Rademakers, M. F. (2016). Building customer-centric organizations: Shaping factors and barriers. Journal of Creating Value, 2(2), 211–230.
• Inversini, A., De Carlo, M. and Masiero, L. (2020). The effects of customer-centricity in hospitality. International Journal of Hospitality Management, 86, 102436.
• Johannes, H., Roland, K., Sascha, A., Philipp, H., Christian, S. and Jan, W (2019). When do customers perceive customer centricity? The role of a firm’s and salespeople’s customer orientation. Journal of Personal Selling and Sales Management, 40(1), 25-42.
• Lamberti, L. (2013). Customer centricity: The construct and the operational antecedents. Journal of Strategic Marketing, 21(7), 588–612.
• Levitt, T. (1960). Marketing myopia. Harvard Business Review, 38, 57-66.
• Mahmoud, M. A., Blankson, C., Owusu-Frimpong, N., Nwankwo, S. and Trang, T. P. (2016). Market orientation, learning orientation and business performance: The mediating role of innovation. International Journal of Bank Marketing, 34(5), 623–648.Marketing, 72, 27–45.
• Martinelli, E. M. (2019). Customer centric innovation: adoption of 3D printing in the Italian jewellery sector. Piccola Impresa/Small Business, (2).
• Nieves, J. and Diaz-Meneses, G. (2016). Antecedents and outcomes of marketing innovation: An empirical analysis in the hotel industry. International Journal of Contemporary Hospitality Management, 28(8), 1554–1576.
• Otley, D. (1999). Performance management: a framework for management control systems research. Management Accounting Research, 10, 363-382.
• Paulus H. A and Andreki, R Y (2014). Is E-Marketing the Future of Marketing Field. American Journal of Industrial and Business Management 4 (7), July.
• Prahalad, C.K., Ramaswamy, V. and Krishnan, M.S. (2004). Consumer centricity. Information Week, 10, 67-76.
• Ramani, G and Kumar, V (2008). Interaction Orientation and Firm Performance, Journal of Marketing, 72(1): 27-45
• Ramshaw, A. (2020). The complete guide to acceptable survey response rates https://www.genroe.com/blog/acceptable-survey-response-rate-2/11504
• Robert, M. (2018). Cohort turnover and operational performance: The July phenomenon in teaching hospitals. Technology and Operations Management, 21(3), 45-61.
• Rust, R.T., Lemon, K.N. and Zeithaml, V.A. (2004). Return on Marketing: Using Customer-Equity to Focus Marketing Strategy. Journal of Marketing, 68, 109-127.
• Sandra C. J and Don I (2012). Pandemic influenza: A global challenge for social marketing marketing. Health Vol.4 No.10A, November .
• Shah, D., Rust, R.T., Parasuraman, A., Staelin, R. and Day, G.S. (2006). The path to customer-centricity. Journal of Service Research, 9(2), 113-124.
• Sheth, J. N., Sisodia, R. S. and Sharma, A. (2000). The antecedents and consequences of customer-centric marketing. Journal of the Academy of Marketing Science, 28, 55–66.
• Smirnova, M. M., Rebiazina, V. A. and Frösén, J. (2018). Customer orientation as a multidimensional construct: Evidence from the Russian markets. Journal of Business Research. 86, 457–467.
• Stoppel, E. and Roth, S. (2017). The conceptualisation of pricing schemes: From product-centric to customer-centric value approaches. Journal of Revenue and Pricing Management, 16(1), 76-90.
• Vlašić, G. and Tutek, E. (2017). Drivers of customer centricity: role of environmental-level, organisation-level and department-level variables. Zagreb International Review of Economics and Business, 20(2), 1-10.
• Voropai, O. (2018). Customer centric marketing strategy for universities.Scientific Papers NaUKMA. Economics. 3, 28-32.
• Wind, J. and Rangaswamy, A. (2001). Customerization: The next revolution in mass customization. Journal of Interactive Marketing, 15, 13–32.
• Yongyue Jin (2018). Study on Marketing Strategy System of SMEs under Internet Background. American Journal of Industrial and Business Management 8 (3), 634-644.
• Dr. Ogunmuyiwa, Michael Segun is a Senior Lecturer in the Department of Business Administration, Faculty of Administration and Management Sciences, Olabissi Onabanjo University, Ago-Iwoye, Nigeria. He has a brief stint in Sona Breweries PLC before joining the academia in 1996. Apart from teaching at both undergraduate and postgraduate levels, he has supervised over 500 undergraduate Projects and not less than 100 M.Sc and M.B.A Dissertations as well as some Ph.D Theses. In addition, he has more than 70 publications in Books, Journals and Learned Conferences both locally and internationally. Dr. M.S Ogunmuyiwa is happily married with Children.
• Agbaje, Ifedayo Oladele is a Doctor of Philosophy (Ph.D) student in the Department of Business Administration, Faculty of Administration and Management Sciences, Olabissi Onabanjo University, Ago-Iwoye, Nigeria. He is currently undergoing his research work towards the acquisition of his Ph.D
How to Cite
Ogunmuyiwa, Michael Segun, and Ifedayo Oladele Agbaje. 2023. “ Nigeria”. Studies in Business and Economics 26 (1):28-41. https://doi.org/10.29117/sbe.2023.0140.
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Articles