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Helena Vieira

March 2nd, 2016

More customer orientation is not always better for frontline employees

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Estimated reading time: 5 minutes

Helena Vieira

March 2nd, 2016

More customer orientation is not always better for frontline employees

0 comments

Estimated reading time: 5 minutes

frontline employee

In the academic and practitioner community, the emphasis has been placed on how being more customer oriented promotes job satisfaction and improves sales outcome (Brown et al. 2002; Donavan, Brown, and Mowen 2004). Although this absolute level approach (i.e., the more the better) has been the dominant paradigm in customer orientation (CO) research, this neglects the social context in which CO operates. That is, although it would be ideal for every frontline employee to have a high level of customer orientation, such expectations are far from practical reality.

Within a group of frontline employees, like in any other group environment, it is not uncommon to observe frontline employees with different CO levels. For example, some will be more customer-oriented than others and vice versa and much is unknown on the consequences of an employee’s customer orientation when surrounded by coworkers who have varying levels of CO. While the literature on the subject has chiefly focused on the absolute level of customer orientation (i.e., high vs. low without regard for relativity) (e.g., Brown et al. 2002; Donavan, Brown, and Mowen 2004; Homburg, Müller, and Klarmann 2011; Stock and Hoyer 2005), in practice it is not only the CO level that matters but also the CO (mis)fit, or how a given frontline employee’s customer orientation measures up against that of coworkers.

We define CO (mis)fit as the difference between a frontline employee’s customer orientation and that of coworkers. That is, (mis)fit involves directionality by capturing the extent to which one person is more or less customer oriented than coworkers. After a careful review, we identified two gaps in the literature, which motivated us to pursue this research. First, research has primarily paid attention to employees’ absolute level of customer orientation. Less consideration has been given to understanding the relative CO level — how one front line employee’s CO compares to that of coworkers. The notion of relativity raises the issue of CO (mis)fit between an employee and coworkers and the impact of such (mis)fit on that person’s work attitude (e.g., coworker relationship quality and job satisfaction) and work performance (e.g., service performance). The social context in which an individual frontline employee operates should thus be considered in investigations of CO and its attitudinal and behavioral outcomes (Chiaburu and Harrison 2008). To this end, this study makes the following contributions.

First, we map out the underlying process through which CO (mis)fit impacts job satisfaction and service performance. Second, we research how three workgroup characteristics change the effect of CO (mis)fit on coworker relationship quality. The three relevant group characteristics we identify for this study are: group size (the number of frontline employees in a workgroup setting); service climate strength (the variability of employees’ agreement with service climate attributes); and LMX differentiation (degree of variation in the relationship quality formed between a leader and individual employees). In short, this study takes initial steps to address a critical gap: customer orientation thus far has been studied from an absolute perspective without consideration of the social context (i.e., relative view) in which employees interact with coworkers (Chiaburu and Harrison 2008).

We use data from auto dealerships from South Korea in the Seoul metropolitan area. We reached out to frontline employees (sales associates and service personnel) and their immediate supervisors using a longitudinal survey that was separated by three months. The final sample consisted of 484 employee–supervisor matched pairs from 65 dealerships. Our findings truly suggest that customer orientation (mis)fit matters and that it does so more or less depending on certain workplace environments. We now report the empirical results and shed light on practical implications.

Our findings support that CO (mis)fit influences job satisfaction and service performance because CO fit improves coworker relationship quality while CO misfit impairs it. To obtain a more nuanced picture of the relationship between CO (mis)fit and coworker relationship quality, we tested how this relationship may change under dealerships that have different (a) size, (b) service climate strength, and (c) LMX (leader-member exchange) differentiation. Results suggest that the positive effect of customer orientation fit on coworker relationship quality is weakened when groups are larger, have more agreement that customer service is important, and have more variability in relationship quality between a manager and her frontline employees. Interestingly, we also found that the negative impact of CO misfit on coworker relationship quality is weakened under similar situations (refer to Figures 1 (a) and (b) which show the results under small and large group size. The pattern was identical for service climate strength and LMX differentiation).

Menguc Figure 1Figure 1 (a): How Size Changes the Impact of CO fit on Frontline Employee (FLE) Coworker Relationship Quality

Menguc Figure 1 B

Figure 1 (b): How Size Changes the Impact of CO misfit on Frontline Employee (FLE) Coworker Relationship Quality

In summary, we offer the following three insights to managers. First, smaller groups (compared to larger groups) will be rewarded for customer orientation fit and penalized for misfit. Second, attaining CO fit and avoiding misfit is more critical when the employees within a group have less agreement on the significance of excellent customer service delivery. Third, seek CO fit and prevent misfit when managers form equal relationships with frontline employees. We conclude by advising that the influence of CO fit and misfit will be more readily pronounced in dealerships that are smaller, have less consensus on the importance of customer service excellence, and have less variation in relationship quality formed between managers and frontline employees.

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Notes:


Bulent MengucBulent Menguc is Professor of Marketing at Kadir Has University, Istanbul. He obtained his undergraduate and Master of Science degrees from Istanbul Technical University and his PhD from Marmara University. Bulent has held academic positions in New Zealand (Lincoln University, Christchurch), Australia (University of Melbourne), Canada (Brock University, Ontario), and England (King’s College London). He held the position of Brock Chancellor’s Chair for Research Excellence during his tenure as Professor of Marketing at Brock University. His research interests include sales force management, internal marketing, marketing strategy, and market-focused management. He has published over 55 journal articles in leading academic journals. Bulent previously served as an Associate Editor of the European Journal of Marketing and currently serves as an Associate Editor for Journal of International Marketing, which is one of premier journals of the American Marketing Association.

Constantine KatsikeasConstantine S. Katsikeas is Associate Dean for the Faculty and the Arnold Ziff Research Chair in Marketing and International Management at Leeds University Business School. Prior to this, he held the Sir Julian Hodge Chair in Marketing and International Business at Cardiff Business School. He currently serves as the Head of the Marketing Division  and the Editor-in-Chief of Journal of International Marketing. He holds a B.Sc. from Athens University of Economics and Business, an M.A. from Lancaster University and a Ph.D. from Cardiff University. His doctoral studies were supported by a scholarship from the ONASSIS Foundation. Professor Katsikeas also possesses considerable industrial experience in sales and export management.  His main teaching and research interests lie in the areas of marketing and sales management, strategic management, international marketing, strategic alliances and competitive strategy.

_KKL9867Seigyoung Auh is Associate Professor of Marketing at Thunderbird School of Global Management at Arizona State University and a Research Faculty at the Center for Services Leadership. His research interests are in the areas of frontline employees’ customer orientation diversity, fit in climate and its impact on frontline employee attitude and performance, service innovation, service leadership, knowledge sharing/transfer in sales teams, sales team learning and conflict. His work has been published in leading academic journals and he sits on the editorial boards of several publications. Seigyoung has worked as a marketing scientist before entering academia and has taught in Australia, Canada, and Korea, before joining Thunderbird. He is also the recipient of the Best Reviewer Award for Journal of Service Research in 2013. Seigyoung has executive education experience with leading global firms such as Samsung Electronics Company and Hyundai Motors. He also served as the co-director for the CEO franchise program in Korea before joining Thunderbird.

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Helena Vieira

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