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INTRODUCTION

MDescriptions of markets as being are, according to many descriptions, highly

competitive, very turbulent and undergoing constantly change are quite commonchanging.

Such market changes refer to markets movements moving from being simple to complex

markets, from stable to dynamic, and from tame to hostile (Neu and Brown, 2005). In order to

survive, companies must adapt to changing conditions in their markets. Natural strategies for

adapting to new situations by adopting natural strategies, include including building the

development of customer relationships and establishing better greater understanding of

customers,, in order to ensure so that they customers receive products that better fit their

needs (Johnson and Selnes, 2004; Narver and Slater, 1990). Another response to changing

market conditions is innovation (Deshpande, Farley, and Webster, 1993; Drucker, 1954;

Hurley and Hult, 1998; Levitt, 1960; Treacy and Wiersma, 1993). Both cCustomer centricity

and innovativeness are two key factors for achieving differentiation andthat, reportedly, have

a positive association with business performance.

In addition, many manufacturing companies are increasingly focusing more on service

differentiation in order to achieve competitive advantages (Fang, Palmatier, and Steenkamp,

2008). Viewing Treating service differentiation as a lasting strategy involves presents many

several opportunities, such as services having becoming higher more profitability profitable

than products, as a response to changing customer demands (Bowen, Siehl, and Schneider,

1989; Mathieu, 2001; Oliva and Kallenberg, 2003; Vandermerwe and Rada, 1998). A specific

link exists between service differentiation and observed changes from simple to complex

market conditions, while. aA positive association also exists between increasing increased

market complexity and the complexity of customer needs.