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Publication Date

2023

Abstract

Marketing orientation has long been touted as a means of improved business performance and a key to success in marketing management (Kotler, Keller & Chernev, 2021). This is a longitudinal study of community banks examining marketing orientation and business performance using a survey instrument based on the work of Narver and Slater (1990) and Kohli and Jaworski (1990).

Four survey datasets cover the period preceding the Great Recession (2003-2005), the Great Recession and its fallout (2008-2010), a Post–Great Recession period (2014-2016), and the COVID-19 period (2020). Survey responses were gathered from a selected set of community bank CEOs in the Southeastern U.S. In addition to survey items about the organization's marketing orientation, bank financial information was collected regarding assets and profits for each year in the study periods. Kohli and Jaworski (1990) make the point that business performance is responsive to changing external conditions. This study includes unemployment, GDP growth, inflation, labor participation rate, and the 10-year U.S. Treasury yield for its direct impact on bank performance.

Research questions focus on variations in the bank's approach to market orientation across the selected four economic periods.

  1. Do banks change their "marketing orientation" when economic conditions change?
  2. Do banks emphasize different variables in marketing orientation (customer, competitors, market planning) based on economic conditions?
  3. Does the relationship between marketing orientation and the bank's financial performance change between the four economic periods?

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