The chain Impact of customer value on organizational performance :A customer-based perspective in a command economy

This study assesses how customer value has chain effects on an insurance industry’s market orientation ,competitive advantage and organizational performance in a command economy by lisrel analysis .the findings showed if Iran insurance industry perceives its customers are service sensitive, the more it tends to develop customer orientation in order to satisfy its customers . But if it thinks its customers are price sensitive,it tends to develop no purposeful orientation . Moreover,the greater this corporation`s customer orientation,the more it is able to develop a competitive advantage based on innovation and market differentiation.In contrast ,a competitor orientation has no special effect on its differentiation advantages.Finally,innovation and market differentiation advantages in this company arenot in the line with market performance (e.g., perceived quality, customer satisfaction)however increasing in market performance will lead to higher financial performance (e.g., profit, market share).

Keywords:

customer value , market orientation , competitive advantage , organizational performance