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.
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 |
|
|
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 |
|
|
|
|