THE INFLUENCE OF PRODUCT-RELATED ATTRIBUTES OF CUSTOMERS ON FINANCIAL PERFORMANCE

Abstract

Marketing research has shown that firms are moresuccessful when they focus on their customers’ needs (Donavan et al., 2004; Kennedy et al., 2003). Althoughsome empirical studies have investigated the relationshipbetween Product-related attributes of customers and financial performance (Gatignon and Xuereb, 1997; Han et al., 1998; Lukas andFerrell, 2000), they have failed to show the mechanism bywhich Product-related attributes of customers promotes financial performance. This studyexplored how Product-related attributes of customers financial performance.Despite ongoing debate regarding the specific dimensions of the customer relationshiporientation construct, the link with organizational performance is almost universally recognized (Sheth and Sisoda, 1999).The findings suggest that financial service managers could considertreating consumers as partners in their provision of existing services or their quest to developsuccessful new services. Reciprocal behavior will foster a positive atmosphere, remove barriers arisingfrom risk, and enable relationships to progress, ultimately improving financial performance.