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The IUP Journal of Management Research :
Enhancing Customer Value Creation with Market Culture: Developing 7Cs Framework
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Market culture is a corporate business philosophy that puts the customerís satisfaction first, while taking into account the role played by the other market factors. Market culture addresses the degree to which the customerís values and beliefs are embedded within the organization and in its activities. Market culture consists of some combination of artifacts, values and norms, and underlying assumptions that organizational members share about their customer-centric behavior. This study focuses on market culture and identifies various elements in terms of 7Cs framework for building market culture. These 7Cs of market culture are: customer insight, competitor awareness, collaborative approach, CEO leadership, criteria for decision making, compensation strategy, and customer value. Significant steps can be taken in each of the 7Cs to strengthen an organizationís market culture. The study develops various frameworks to establish a relationship between market culture and firm valuation and also provides supporting illustrations.

 
 

There are many sought-after market factors of external environment that obviously should enhance the financial performance of an organization in terms of sustained profitability and above-normal financial returns. Some of the market factors are high barriers to entry, non-substitutable products, a large market share, low bargaining power of buyers and suppliers or rivalry among competitors. Still, there are many organizations exhibiting financial success even in the absence of such desirable market factors. In reality, for some organizations, the key ingredient of success is something less tangible but more powerful than the market factors listed above. The major distinguishing feature in highly successful organizations and their most important competitive advantage is their organizational culture. Organization culture is a key driver in enhancing the performance of the organization and is an explanatory variable that distinguishes one organization from another.

 
 

Management Research Journal