Identifying and prioritizing the factors affecting customer orientation in Urmia production cooperatives and providing proper solutions by using hierarchical techniques

 

Ali Doniavi, Akbar Pourfatemi

Islamic Azad University of Urmia, Department of Management, Iran

*Corresponding Author E-mail: saied_fatemi@yahoo.com

 

ABSTRACT:

Customer-orientation is the most useful and the most appropriate strategy for activists in production. In fact, this sentence it can be stated a little powerful that customer is the basis for a foundation and a production system. A customer in industry is least asset. Today, the industry is obligated to see itself in the mirror of the customer and try to understand the wants and desires of the customers in comparative environment and make the client satisfy by the organization. The purpose of this research is to identify and prioritize the factors affecting customer satisfaction in production cooperatives in Urmia and providing solutions using hierarchy technique.

 

All production cooperatives in the city of Urmia were taken into account and comments of 51 experts and specialists was determined in different areas such as security of electronic services, the attractiveness of the service, ease of use of services, the stability of services, utility of systems, customer relationship, which was gathered by researcher made questionnaire. The opinions of experts were determined that based on comparisons of search criteria, security of electronic services has been the first priority and the second priority was system usefulness in long-term. The final weight was determined by choice items. Stability of electronic services and security of electronic services were in first and second priority, respectively.  Privacy and system usefulness were at the next priority.

 

KEY WORDS: Production cooperatives, Analytic Hierarchy (AHP), Customer-orientation.

 

 


INTRODUCTION:

Today, with the proliferation of new age communication tools to improve the level of communication that has been achieved, the market is considered as actual and potential customers of the firm and its competitors. Industrial and service companies set foot further to benefit from the opportunities and consider potential customers. Market orientation in all businesses and service-orientation activities depends on customer satisfaction and his life appeasement. 

 

The customer is the basis of this attitude. In production cooperatives, due to intense competition and close relationship of the industry with customer satisfaction, market orientation is of particular importance. According to the foregoing, this research is to identify and prioritize the factors affecting customer satisfaction in production cooperatives in Urmia and finally providing solutions using hierarchy technique. In the last years of the twentieth century, many organizations were forced to adopt customer-based perspective. In this perspective client will be an integral part of the process. Organization that has customer-based perspective when planning product (goods or services) and supply, has paid special attention to the customer (Cartwright, 17, 2004).

In a highly competitive environment whatever the organization know more information about the customers’ needs and easily contact with them, will be more successful in the competition. Advocates of the concept of customer-oriented believe that organization should take a close customer contact. Otherwise, they must accept the risk that someone else will do it (Dadkhah, 27, 2009). The reason behind this study was to improve the results on the subject of customer loyalty. Finally, this study attempts to determine the importance of each factor that increase customer loyalty as a predictor. Moreover, this attitude can be expressed whether international studies can be used and tested in Urmia cooperatives or not.

 

Urmia city has much potential to produce products and services in the form of production cooperatives. Thus, in such an atmosphere, considering both the customer and the competitor can have an appropriate effect in this industry. The population of this study consisted of managers of production cooperatives and their members in Urmia that have all information about customers and competitors.

 

RESEARCH LITERATURE:

In comparison with studies in the field of marketing, sales studies are on a new domain. Effective sales and sales management are an important resource for market success (Jones et al., 2005). In 1950s, the organization had found out that the strategy based on sales could undermine the image of the company. Thus, the concept of marketing had gradually emerged and customer-based sales concept have been receiving considerable attention. Researchers such as Saxe and Weitz (1982), was defined this concept as: "the implementation level of the marketing concept by the seller through helping customers to make decisions to meet the shopping needs". This concept was a key element in successful and profitable business performance and should be considered in business planning (Jaber, Lancaster, 2011).

Lopez et al (2006) stated that more research must be done on motivation, especially in relation to sales environment variable. The success of an organization is dependent on individual sales and to motivate the sales, sales managers must understand the needs of the seller. Classical theories of motivation suggest that people hold different values ​​for their needs (Herzberg, 2007). Maslow (1970) offered a classification of requirements that promote motivation. Herzberg et al (2007) stated that all invoices do not act as incentives and some of them make loss of motivation and enthusiasm. Vroom (1966) emphasized that if no staff is expected to improve its performance, they will never be an incentive for better performance. These classical theories of motivation have created the basis for development in the field. The findings show that people participate in activities that are with satisfying reward and receiving and are in accordance with their basic needs (Ryan and Deci, 2000). Harmon et al (2002) stated that the behavior management of vendors are expandable, because organizations move focus toward customer-oriented strategy and relationships. It has to be demonstrated how motivation will affect the sellers and their relationships with customers (Polynes, 2001). Hackman and Oldham (1980) argued that improved job is able to bring suitable feedback such as intrinsic motivation and productivity. As a result, job design theory has drawn considerable attention.

 

RESEARCH METHOD:

This research is applied research and a field study. The research method to prioritize the factors affecting customer satisfaction in Urmia cooperatives are hierarchical techniques. Given that the study population have been identified and limited to 51 experts related to the subject of research. Thus the sampling will not be done and a questionnaire will be available to all members of the statistical community.

 

In this study, a paired comparison questionnaire designed by the researchers was used to evaluate the importance coefficients and paired comparison. The used questionnaire consists of 36 questions that have been established based on evaluated effective criteria and factors affecting customer orientation in production cooperatives in Urmia. This questionnaire has been designed to perform paired comparison between standard effective factors. 9-point Likert scores range was used in this questionnaire.

 


 

 

 

 

Table 1. 9-point Likert scores range

Variables

Absolute importance

Middle importance

Very strong

Middle importance

Strong importance

Middle importance

Weak importance

Middle importance

Equal importance

Scores range

9

8

7

6

5

4

3

2

1

 


 

 

 

 

 

Comparisons between different options based on each indicator and judging the importance of the decision by making paired comparisons after designing the hierarchy of decision, the decision maker must create a set of matrices with numerical importance or relative priorities of each factor compared with each other and measure each decision option according to the index relative to other options.  The process is performed by mutual comparisons between decision elements (paired comparison) through assigning a numerical score that indicates the priority or importance of the decision between two elements.  The above steps have been conducted at this research.

 

DATA ANALYSIS:

Expert choice 11 Software is used in order to make paired comparisons. At first, the data were entered into the software and then each of the available options had been analyzed according to selected criteria. This is performed by mutual comparisons between design elements (paired) and assigning a numerical score that indicates the priority or importance of the decision between two elements.  The indices i-th is usually used for options’ comparison of the j-th item or indices.

 

Paired Comparison based on customer loyalty

Table 2. matrix of paired comparisons based on customer loyalty

wi

C6

C5

C4

C3

C2

C1

 

0.280

3.18

1.95

1.5

2.6

2.167

1

C1

0.169

3.0

2.84

1.12

1.1

1

 

C2

0.138

3.0

1.3

2.1

1

 

 

C3

0.156

2.2

1.0

1

 

 

 

C4

0.179

4.0

1

 

 

 

 

C5

0.079

1

 

 

 

 

 

C6

0.04

Cr<0/1

Inconsistency rate

0<wi<1

Final weight

 

 

 

Bar Graph 1. significance coefficients based on customers’ loyalty

 

 

According to research findings and the results of comparison of mutual options, it can be seen that according to customers’ loyalty, customers’ first priority is electronic security services and the second priority is service attractiveness. Other options also are ranked at next stages based on their importance. Due to the inconsistency rate less than 0.1, adjudication of respondents about options is done correctly.

Paired Comparison based on customer attraction

 

Table 3. matrix of paired comparisons based on customer attraction

wi

C6

C5

C4

C3

C2

C1

 

0.191

2.0

1.06

1.08

3.0

1.25

1

C1

0.205

2.2

1.17

3.0

2.0

1

 

C2

0.117

1.6

1.13

3.2

1

 

 

C3

0.168

1.5

2.2

1

 

 

 

C4

0.164

1.6

1

 

 

 

 

C5

0.154

1

 

 

 

 

 

C6

0.02

Cr<0/1

Inconsistency rate

0<wi<1

Final weight

 

 

 

Bar Graph 2. significance coefficients based on customers’ attraction

 

 

 

According to research findings and the results from comparison of mutual options, it can be seen that according to customers’ attraction, customers’ first priority is Ease of use of the system and the second priority is electronic security services. Other options also are ranked at next stages based on their importance. Due to the inconsistency rate less than 0.1, adjudication of respondents about options is done correctly.

 

Paired Comparison based on repurchase

Table 4. matrix of paired comparisons based on repurchasing

wi

C6

C5

C4

C3

C2

C1

 

0.123

2.15

2.0

1.1

2.15

1.3

1

C1

0.214

4.0

2.0

1.05

1.6

1

 

C2

0.283

4.2

2.4

3.0

1

 

 

C3

0.126

2.6

2.0

1

 

 

 

C4

0.194

2.5

1

 

 

 

 

C5

0.060

1

 

 

 

 

 

C6

0.03

Cr<0/1

inconsistency rate

0<wi<1

Final weight

 

 

 

 

Bar Graph 3. significance coefficients based on repurchasing

 

According to research findings and the results from a comparison of mutual options, it can be seen that according to customer repurchase, customers’ first priority is attractive option for electronic services and the second priority is stability of electronic services. Other options also are ranked at next stages based on their importance. Due to the inconsistency rate less than 0.1, adjudication of respondents about options is done correctly.

 

Paired comparisons based on person to person marketing standard

 

Table 5. matrix of paired comparisons based on person to person marketing

wi

C6

C5

C4

C3

C2

C1

 

0.082

2.3

3.1

4.0

1.3

2.4

1

C1

0.298

1.0

4.5

3.0

1.7

1

 

C2

0.105

3.0

4.5

3.2

1

 

 

C3

0.269

1.6

2.1

1

 

 

 

C4

0.025

2.5

1

 

 

 

 

C5

0.221

1

 

 

 

 

 

C6

0.06

Cr<0/1

inconsistency rate

0<wi<1

Final weight

 

 

Bar Graph 4. significance coefficients based on the privacy criteria

 

 

According to research findings and the results from a comparison of mutual options, it can be seen that according to person to person marketing criteria, customers’ first priority is option of electronic service stability and the second priority is the usefulness option. Other options also are ranked at next stages based on their importance. Due to the inconsistency rate less than 0.1, adjudication of respondents about options is done correctly.

 

Paired Comparison based on repurchase benchmark

 

Table 6. matrix of paired comparisons based on repurchase benchmark

wi

C6

C5

C4

C3

C2

C1

 

0.290

2.5

2.1

2.0

1.0

2.45

1

C1

0.146

2.0

1.2

1.0

1.3

1

 

C2

0.172

3.2

1.4

2.3

1

 

 

C3

0.152

1.8

3.1

1

 

 

 

C4

0.153

1.6

1

 

 

 

 

C5

0.083

1

 

 

 

 

 

C6

0.01

Cr<0/1

Inconsistency rate

0<wi<1

Final weight

 

Bar Graph 5. significance coefficients based on repurchasing

 

 

According to research findings and the results from a comparison of mutual options, it can be seen that according to repurchasing, customers’ first priority is option of electronic service stability and the second priority is relationship with customer. Other options also are ranked at next stages based on their importance. Due to the inconsistency rate less than 0.1, adjudication of respondents about options is done correctly.

 

Final Comparison of items

Table 7. matrix of paired comparisons of factors

wi

C5

C4

C3

C2

C1

 

0.246

1.2

1.13

2.0

1.3

1

C1

0.195

1.13

1.15

1.59

1

 

C2

0.134

2.0

1.6

1

 

 

C3

0.219

1.9

1