Relationships among Customer Orientation, Buyer-Seller Relationship and outcome behavior
intentions: a Case Study of Shopping Mall in Taiwan
Chun-hua Hsiao
Department of Business Administration
Vanung University
PhD student of Business Administration
Department, National Taipei University
F5 N03 Sec 4 Ln378 Hsinyi Rd, Taipei, Taiwna,
106, R.O.C
may@vnu.edu.tw
Key Word: customer orientation, buyer-seller relationship, consumer satisfaction, and repurchase intentions
Abstract
This study specifically examines the
relationships among customer orientation (CO),
buyer-seller relationship, and behavior intentions.
Research data was collected in a survey of 216
consumers from a suburban shopping mall in
northern Taiwan. With structural-equation analysis,
the results showed that customer orientation had
direct positive effect on seller-buyer relationship
and customer satisfaction, while direct effect on
repurchase intention was not supported in this
study. Furthermore, there was no empirical
evidence in this sturdy to support any positive
relationship among sales orientation (SO) and the
above variables.
1. Introduction
It is widely acknowledged that successful
organizations need to have a customer-oriented
business culture [1]. In fact, during the four decades
since the introduction of the marketing concept,
customer orientation has been identified as a
cornerstone of the theory and practice of marketing
management [11].
TAIMALL, the first shopping mall in Taiwan,
Hsiu-Hui Chang
Department of International Trade
Chungyu Institute of Technology
PhD student of Business Administration
Department, National Taipei University
No, 69. Sec 2, Chien Kuo N. Rd., Taipei, Taiwan,
104, R.O.C
changschool@yahoo.com.tw
was established in 1997, and since then, the other
three shopping malls were opened successively.
There are four shopping malls in Taiwan right now
with two in suburban (TAIMALL and Metro Walk)
and two in urban area (Core Pacific City and
Breeze Center). As shopping has become a habit
and life style in Asian countries, it is worthy to
investigate the impact of the establishment of
shopping malls on consumer behavior. Also, the
results can serve as references to the shopping mall
proprietor in their planning and setting marketing
strategies and management system.
It is widely recognized that customers play a
vital role in service organizations. Young adults
around the world are preoccupied with material
possessions and shopping because they have
exposed to malls and television watching from their
earliest years. The purpose of this study is to focus
on consumers’ behavior and attitudes toward
shopping mall and to assess the influence of
customer orientation on buyer-seller relationship,
satisfaction, and repurchase intentions. The mediate
role of buyer-seller relationship and satisfaction is
also investigated. The remaining segments of the
article discuss methodology, results of this study,
and managerial implications.
2. Literature Review
The Sales Orientation/Customer Orientation
(SOCO) scale has been validated and is used
widely in assessing the degree of customer
orientation of the salesperson [14]. Therefore,
SOCO represents a very broad evaluation of a
salesperson's performance with respect to
customers. A customer orientation (CO) is part of a
cultural foundation that results in positive customer
perceptions [8]. Recognition of the need to bridge
these gaps in knowledge regarding customer
orientation and relationship development is
apparent in many calls for theoretically based
empirical research [17,20]. According to some
marketing scholars’ investigation on the nature and
outcomes of customer orientation, the results
support a positive relationship between customer
orientation and the development of buyer-seller
relationships [9,17]. This leads to the first research
hypothesis.
H1a: Customer-oriented (CO) has a positive
effect on buyer-seller relationship (BSL).
H1b: Sales-oriented (SO) has a positive effect on
buyer-seller relationship (BSL).
Customer orientation emphasizes an
organization’s ability to attain customer
information, to analyze it, and to set priorities for
improvement. By using these priorities to
understand customers’ needs and design better
products or services, organization could increase
customer satisfaction. The result of Chee and
Peng’s [6] research is also consistent with the
assertions by Kohli and Jaworski [13] that the
perceived levels of customer orientation in the
selling organization influence the satisfaction levels
of buyers. In addition, studies in close relationships
have found a significant relationship between
satisfaction with outcomes and commitment to a
relationship [16]. This leads to the second
hypothesis.
H2a: Customer-oriented (CO) has a positive
effect on customer satisfaction (CS).
H2b: Sales-oriented (SO) has a positive effect
on customer satisfaction (CS).
Slater and Narver [18] argued that fostering a
customer-oriented culture leads to the creation and
maintenance of customer value. Furthermore, this
also leads to a firm well positioned to anticipate the
needs of its customers and to offer goods and
services satisfying customers’ needs. As a result, a
strong customer orientation is pervasive in the
development of consumer performance perceptions
in that it has been tied conceptually to improved
service quality perceptions [7,10], enhanced
satisfaction [12], and more favorable behavioral
outcomes (Hoffman and Ingram 1992; Kelly 1992),
such as loyalty and repurchase behavior. This leads
to the third research hypothesis.
H3a: Customer-orientation (CO) has a positive
effect on repurchase intentions (RP).
H3b: Sales-orientation (SO) has a positive effect
on repurchase intentions (RI).
It was argued that, in a close relationship,
customers would focus on their overall relationship
with suppliers rather than evaluating individual
product offering. It follows that the higher buyers’
perception toward the quality of their relationship
with a seller, the more likely for them to repurchase
from that seller [5]. Moreover, Barnes[2] argued
that friendly customer-employee relationship would
lead to repeat patronage. The result is consistent
with that of Kelly et al.[12] that there is a
significant positive relationship between buyer
perceptions of the relationship and their repurchase
intentions. According to studies mentioned above,
the fourth and fifth hypotheses are presented:
 H4:Buyer-Seller relationship (BSL) has a positive
effect on customer satisfaction (CS).
H5:Buyer-Seller relationship (BSL) has a positive
effect on repurchase intentions (RI).
For a long time, customer satisfaction (CS) has
been regarded as an antecedent of repurchase.
Enormous investment in CS programs has revealed
that higher CS does not guarantee higher
repurchase. Even after achieving a desirable level
of CS, firms have often found that having satisfied
customers is not sufficient [15,19]. Despite the
controversial issues about the causal relationship
between customer satisfaction and repurchase
intention, the hypothesis is presented as following:
H6: Customer satisfaction (CS) has a positive
effect on repurchase intention (RI).
3. Measures and Methods
Customer Orientation (CO) will be measured by
using the thirteen positively worded items from the
Sales Orientation/Customer Orientation (SOCO)
scale [19]. Two factors with total nine items
account for 61% of the total variance (41% and
20%, respectively). Buyer-seller relationship (BSL)
development was assessed by a two-item scale and
the coefficient alpha estimate for the scale was
0.79. The single dimension accounts for 57% of
total variance. Customer satisfaction (CS) is
defined as a cognitive and affective response to the
consumption experience [4]. Repurchase intentions
is defined as a customer’s belief that he or she
would purchase in this shopping mall at some
future time. These statistics suggest an acceptable
fit of the model.
The six hypotheses were tested using a Linear
Structure Relation (LISREL) model. Table 3
provides the results of the series of hypotheses. As
shown in the table, customer orientation has a
significant effect on buyer-seller relationship, and
customer satisfaction, but not on repurchase
intention. Buyer-seller relationship has a positive
effect on customer satisfaction and repurchase
intention. Finally, sales orientation (SO) was not
positively related to relationship and any outcome
of purchase behaviors, as seen in Boles[3].
Standardized path estimates resulting from testing
the proposed structure model were presented. For
the structure model, χ2=140.11 with 112 degrees of
freedom (p=0.04). The model GFI is .96, the AGFI
is .90, RMR is .055. These indices indicated an
acceptable fit for the structure model for the
purpose of testing proposed hypotheses.
4. Conclusion
These findings suggest that a firm can exert
considerable influence on a sales force to perform
in a customer-oriented fashion. Results from this
research also demonstrate that a salesperson’s
practice of customer-oriented behavior is positively
related to the consumer’s behavior intentions.
The sample used in this study was drawn from a
suburban shopping mall, the consumer behavior in
suburban might be different from that in urban.
Therefore, relationship between seller and buyer
might be less important in urban shopping malls
than in suburban shopping malls. So the results
from this study may not be generalized to
consumers in all the shopping malls of Taiwan.
Secondly, the study is limited to the buyer’s
perception. Future research could gather data from
both sides-buyers and sellers. Match dyads could be
utilized to examine perceptual gaps in levels of
customer orientation and perceived seller-buyer
relationship.
Future research is required to extend structural
equation modeling to provide a much richer
description of perception relationship and post-
purchase intention for different types of services.
Research is also necessary to investigate other
outcome behaviors, such as the effect of switching
5. References
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satisfaction; examining the nature of
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services and their retail customers”,
Psychology and Marketing, Vol. 14 No. 8, pp.
765-90.
[3] Boles, James S.; Babin, Barry J.; Brashear,
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Table 1 Characteristics of the Respondents

Items Percent
Sex Male 30% Buyer-Seller
Female 70% Relationship 0.46
0.50 (5.50***)
Age 20 and below 20% (5.47***)
Customer
21-30 70% Repurchase
Orientation
30-40 6% Intentions
40 and above 4% 0.29
Sales 0.42 (3.14***)
Shopping 1 and below 30% 0.42
(4.15***) Statistics and Cronbach’s
OrientationTable2 Descriptive (4.15***) alpha
Frequency/month 2-3 54% Variables Coeffici Mean Standard
Customer
4-5 11% ent α
Satisfaction Deviation
Customer Orientation (CO) 0.77 3.75 0.62
6 and above 5% Sales Orientation (SO) 0.87 3.62 0.64
Average Spending NT 1,000 and below 48% Buyer-Seller Relationship 0.79 3.71 0.64
1,001~3,000 42% (BSR) FIGURE 1
Customer SatisfactionThe(CS) 081 Model
Research 3.67 0.51
3,001~5,000 7% Repurchase Intention (RI) 3.74 0.59
5,000 and above 3%
Transportation By walk 4% Table3 Results of Tests of Research Hypothesis
By scooter 50% Hypothesi Path Standardized Path t value
s Estimate
By car 28%
H1a CO→BSR 0.5 4.47***
Buy bus 18% H1b SO→BSR 0.01 0.15
Travel Time 30 min and below 51% H2a CO→CS 0.42 4.15***
30~60 min 46% H2b SO→CS 0.14 1.98
H3a CO→RP 0.15 1.63
60 min and above 3%
H3b SO→RP -0.02 -0.41
H4 BSR→CS 0.29 3.14***
H5 BSR→RI 0.46 5.50***
H6 CS→RI 0.42 4.51***