Applicability of Market Orientation Scales in Tanzania: A Tourism Industry Perspective

Abstract

The insufficient information on the market orientation measurements in developing countries has created an interest among scholars to develop an applicable measure from different perspectives. Thus, this present study was set to test the applicability of MKTOR and MARKOR scales of market orientation in Tanzania using a tourism industry perspective. The structured questionnaire was supplied to 210 owners and managers of the tour operation business. The study employed a multi-stage sampling procedure to select the study areas and respondents. On the other hand, the Structural Equation Modelling (SEM) findings revealed that all five constructions were significant to the performance of tour operators. Specifically, customer orientation had (β = 0.141, p=0.036) on non-financial performance and (β = 0.471, p=0.001) on financial performance. Also, competitor orientation had (β = 0.26, p=0.001) on non-financial with and ( β = -0.01, p=0.934) financial performance. Additionally, intelligence generation was found to have (β = 0.18, p=0.011) and (β = 0.10, p=0.011) on financial performance. Intelligence dissemination was found to have (β = 0.110, p=0.002) on non-financial performance and (β = 0.174, p=0.010) on financial performance while responsiveness had (β = 0.001, p=0.870) on non-financial performance and (β = 0.182, p=0.001) on financial performance. It can be concluded that MKTOR and MARKOR scales of market orientation can be applied in the tourism industry in Tanzania. The study further recommends to the government and tourism supporting sectors that formal and informal training are supposed to be established to improve the skills of tour operators related to market orientation.