There is wide acceptance of the precept that market orientation is associated with superior firm performance. However, empirical support for the proposition in prior literature is weak. This study examines the relationship between market orientation and performance with data from 201 international hotels and finds that market orientation is positively associated with both judgmental measures of performance ± service quality, customer satisfaction, and employee satisfaction, and objective measures of performance ± occupancy rate, gross operating profit, and market share. Specifically, the study finds that the immediate impact of market orientation is to spur innovation, which, in turn, enhances judgmental performance, which, in turn, enhances objective performance.

The authors examine three governance mechanisms according to how well they mitigate opportunism in marketing channels. Using the U.S. hotel industry as the research context, the authors investigate how opportunism is limited by (1) ownership, (2) investment in transaction-specific assets, and (3) norms of relational exchange. They also investigate how various combinations of these governance mechanisms affect opportunistic behavior in hotel channels. Overall, the results generally support emphasizing relational norms in managing opportunism in marketing channels. The results also indicate that opportunism can be exacerbated when ownership or investments in transaction-specific assets are accentuated as governance mechanisms.

a b s t r a c tThis study assesses how customer value affects a firm's market orientation and consequently, competitive advantage and organizational performance in a service industry -the global hotel industry. The findings show that if a firm perceives its customers as valuing service, the firm is more likely to adopt both a customer and a competitor orientation; if the firm thinks its customers are price sensitive, the firm tends to develop a competitor orientation. Moreover, the greater a firm's customer orientation, the more the firm is able to develop a competitive advantage based on innovation and market differentiation. In contrast, a competitor orientation has a negative effect on a firm's market differentiation advantage. Finally, innovation and market differentiation advantages lead to greater market performance (e.g., perceived quality, customer satisfaction) and in turn, higher financial performance (e.g., profit, market share).

Purpose Purpose: The purpose of this paper is to understand the impact service innovation has on customers' choices within the hotel and leisure industry. The paper also discusses the influence of the creation of new services on both service development and operational strategy. Design/methodology/approach Design/methodology/approach: The analysis is based on a national survey of approximately 1,000 travelers in the United States, using a web-based data acquisition approach. The travelers are segmented by reason of travel (business or leisure), and discrete choice analysis is applied to model customer preferences for various hotel service innovations. Findings Findings: Overall, the study finds that service innovation does matter when guests are selecting a hotel, with type of lodging having the largest impact on a customer's hotel choice. In addition, service innovation is found to have a larger influence on choices when guests are staying at economy hotels rather than midrange to up-scale hotels. Also, leisure travelers were found to be more influenced by innovative amenities such as childcare programs and in-room kitchenettes than business travelers. Practical implications Practical implications: The understanding of customers' choices allows managers to better design their service offerings and formulate corresponding operational strategies around customer needs. Originality/value Originality/value: This paper examines the addition of innovation to the hotel service concept and is an excellent tool for managers deciding on which innovations to implement.