Key Differentiating Characteristics of Customer Focused Companies

Kohli, Jaworski & Kumar created and validated a scale of market orientation called MARKOR consisting of approximately 20 questions covering their three dimensions of market orientation. This scale has been used in scores of articles since its creation, which indicates strong reliability. Scales like this help us better understand important concepts because each question is a validated observable attribute of an otherwise unobservable, latent concept.

So here are a few of the 20 indicators that measure market orientation in the MARKOR scale:


Intelligence Generation

1. Meeting with customers to determine current/future needs.
2. An in-house market research department.
3. Ability to detect changes in customers' product preferences.
4. At least annual surveys of customer perceptions.

Intelligence Dissemination

1. Regular interdepartmental meetings on market trends and developments.
2. Important events in the market or with key customers are shared quickly with all affected departments.
3. Regular dissemination of customer satisfaction data at all levels of the company.

Responsiveness

1. Recognition of changes in customers' product or service needs.
2. Alignment of product development efforts with customer needs.
3. Regular, interdepartmental planning to respond to changes in the business environment.
4. Responsiveness to customer complaints.
5. Making concerted efforts to modify products or services to fit customer needs.

Are these all the elements of a customer centric organization? Of course not. But, according to Walker Research, these are some of the key differentiating characteristics of customer focused companies - the characteristics most likely to produce the beneficial company performance associated with high levels of market orientation. In other words, research has shown that companies with the above characteristics have significantly better long-term performance.