Key findings:
The research investigated the role of ambidexterity marketing prowess in customer retention in furniture stores in northern Iraq. Findings revealed a significant correlation between ambidexterity marketing prowess and customer retention, emphasizing the importance of exploring opportunities, investing in opportunities, and marketing flexibility in meeting customer needs effectively.
What is known and what is new?
The known aspect in this abstract is the concept of ambidexterity marketing prowess and its dimensions, as well as the importance of customer retention and its dimensions. The new contribution is the empirical investigation of the relationship between ambidexterity marketing prowess and customer retention in the context of furniture stores in northern Iraq, providing insights into the practical application of these concepts in a specific industry.
What is the implication, and what should change now?
The implication of this research is the recognition of ambidexterity marketing prowess as a significant factor in customer retention for furniture stores. Changes needed include further research to explore the specific mechanisms through which ambidexterity impacts customer retention, enabling the development of targeted strategies to enhance customer loyalty and satisfaction in the furniture industry.
1-1 previous studies
Many marketing studies have dealt with the issues of customer retention because of its importance in the sustainability of marketing activities and the prosperity of companies and their progress in the market. Here are these studies:
Study [1], which dealt with developing strategies to retain customers. A case study of an Irish car dealership. The study aimed to develop the strategies used in a car dealership in Ireland that would enhance customer retention. The study concluded that there is a discrepancy in the practices that are applied by franchised commercial car dealerships in Ireland, which may be useful to other agents looking to improve their competitive advantage by paying attention to customers' needs and wants.
Study [2], The study examined the relationship between customer retention strategies and customer satisfaction in commercial banks in the Kenyan city of Machakos, and aimed to investigate the relationship between service quality and customer satisfaction in commercial banks in the town of Machakos. The study found that customer retention strategies have a strong positive correlation with the services the bank provides to its customers, and that interest in services is an important factor in customer retention.
2-1 the research methodology
The research methodology includes identifying the research problem, its importance, its established hypotheses, its hypothetical model, the research community and its sample, as well as the data collection methods and statistical tools used in analyzing data on the field side of the research.
2-1-1 the research problem
Most Organizations seek to retain customers, as they work with all the resources and capabilities they have to achieve their goal of retaining customers through Ambidexterity marketing prowess by exploring and investing opportunities, which guarantees them superiority and leadership in their competitive sector. By surveying the conditions of the companies studied, it was found that they suffer from a major problem that enables In (How can the researched stores retain customers, especially taking into account the existing competition in this market sector?) It branches out from the following question:
What is the level of influence of Ambidexterity marketing prowess on customer retention?
2-1-2 the importance of research
The importance of the research comes from the importance of its variables, dimensions, and market sector, as the research is supported by studying the theoretical frameworks of its variables represented by (Ambidexterity marketing prowess and customer retention), in addition to studying the chosen field represented by furniture stores operating in the northern region of Iraq. Thus, the importance of the research is embodied in the following:
Regarding the field aspect, we note that the importance lies in clarifying the extent to which the furniture company adopts the dimensions of customer retention and benefits from them in practice in order to achieve its goals of survival, continued growth, and meeting the multiple needs of the market.
2-1-3 the research objectives
The most important objectives that the research seeks to achieve can be stated as follows:
Benefiting from the results in order to reach conclusions, which allows the two researchers to present a set of proposals and implementation mechanisms that would contribute to supporting the activities of furniture companies and their offered products that would achieve customer retention.
2-1-4 the research community and its sample
The research community is represented by furniture stores that market the home and office furniture product in the northern region of Iraq, represented by the governorates of (Erbil, Nineveh, and Dohuk), which provide their products and after-sales services to customers at the specified time and place, as well as taking into account their needs and desires by marketing the product according to the request and design that They want it and it meets their needs. As for the research sample, it was represented by selecting (3) from the branches of furniture stores operating in Iraq, which are each of the Turkish stores (Vana, Istikbal, and Bellona).
A questionnaire form was designed according to a five-point Likert scale and distributed to individuals working in the field of marketing and after-sales services in stores. The survey included (55) questionnaires.
2-1-5 the diagram of the hypothetical research
Model Figure (1) shows a diagram of the hypothetical research model through which the correlation and impact relationships are expressed between the main research variables represented by Ambidexterity marketing prowess and its dimensions as an independent variable, and customer retention and its dimensions as a dependent variable.
Figure (1) Diagram of the hypothetical research
2-1-6 the research hypotheses
Two main hypotheses were formulated:
2-1-7 the statistical tools
A set of statistical tools and measures were used in the current research in order to test the established research hypotheses and reach the desired results after interpreting the correlation and influence relationships for the two research variables. Which:
2-1 Ambidexterity Marketing prowess
The word ambidexterity goes back to the Latin origin and means the right hands [3], and it also comes with many meanings, including using both hands easily and equally, or multiple uses. Duncan was the first to use the term “ambidexterity.” in the organizational context in 1976 AD and described it as the extent to which the organization is able to implement dual structures to manage activities arising from a focus on alignment and adaptation simultaneously [4].
2-1-1 the concept of Ambidexterity Marketing prowess and its importance
Marketing literature has been exposed to marketing ambidexterity through a rather narrow perspective, as some researchers consider it to be the process of exploiting marketing opportunities through various promotional activities, or exploring marketing opportunities through an interest in research and development activities, thus ignoring the importance of balancing exploitation and exploration of marketing opportunities, [5]
It is no secret today that current developments in the field of information, technology and other external variables have forced companies to keep pace with them by exploring market opportunities, working to invest in them, as well as providing flexibility in performing activities and marketing products to customers, in a way that ensures their survival and growth in the market in order to satisfy and retain their customers. them clearly and planned [6]. (Josephson, et al., 2016, 539) [2] indicated that Ambidexterity marketing prowess is “a combination of exploration and investment activities for scarce resources and marketing and dynamism capabilities necessary to build balanced marketing performance to achieve strategic objectives,” and they also confirmed [7] that it “Experimenting new alternatives that contribute to achieving an immediate marketing addition based on the use of core capabilities, current technologies, and information systems to achieve positive returns and sustainable marketing excellence.”. As for [8], they indicated that it is “the ability to explore and invest continuously, especially when companies work In changing and complex environments, the ability of Ambidexterity marketing prowess lies in identifying and evaluating opportunities and threats in the business environment, and investing and mobilizing efforts and resources to confront threats and competition.” [9] also pointed out that it is “the ability of companies to achieve success through qualified leaders through Exploring opportunities, exploiting available and new capabilities, employing them in a regular and planned manner, and activating all the company’s capabilities to achieve success and participate in the competition.”, Thus, the importance of marketing prowess can be translated today as a competitive strategy through which organizations can demonstrate their ability to explore market opportunities, plan to invest in them, and deal with external variables with greater flexibility and with less cost, effort, and time in a way that achieves success and marketing excellence. [10]
2-1-2 Dimensions of Ambidexterity Marketing prowess
[3, 11-15] believe that the dimensions of marketing prowess lie in exploring opportunities, exploiting opportunities, and marketing flexibility. (Al-Amiri & Al-Yasiri, 2021), (Al-Attar & Al-Mamouri, 2021) [16, 17] they defined its dimensions as (exploring and investing in opportunities). Accordingly, these dimensions will be adopted to measure marketing prowess. The following is a brief explanation of these dimensions:
1. Explore Opportunities:
It is considered one of the purposeful marketing methods by following marketing rules and procedures that would contribute to confronting market challenges and obstacles to activate, develop and improve the capabilities of the company’s employees. They are the main basis for enhancing the capabilities and capabilities required to implement strategic plans through which one can search for resources that are less widespread in the environment. External opportunities, and the opportunities that are available at the appropriate time and place to invest those resources in developing and improving the company’s capabilities in order to achieve the goal of survival in the market, and encouraging employees to explore new and innovative methods and practices to work in innovation, creativity, and continuous development to achieve the desired marketing goals.
2. Investing Opportunities:
It is considered an important marketing strategy, as it represents the basis for the success of the company's strategic directions towards market competition, in order to enhance the necessary goals and objectives such as increasing sales and growth and addressing the obstacles and challenges facing marketing activity, as well as enhancing marketing capabilities and reducing the impact of marketing alternatives on performance. The company in general, and this is done after identifying marketing opportunities and taking advantage of them in a way that exceeds the ability of competitors in order to achieve a high-value competitive advantage. The investing opportunities refers to improving and expanding available capabilities, technologies, and marketing models that meet customers' current needs and desires and achieve significant returns for the organization.
3. Marketing Flexibility:
It means the company's tendency to adapt and respond quickly to environmental changes, especially external ones, such as the diversity of needs and desires, changing customer tastes, and lifestyle, to make sound marketing decisions that would lead to achieving marketing objectives through implementing marketing activities in a way that marketers can adapt and harmonize with the changes. Continuous processes that occur in the external environment in order to achieve the needs and desires of current and potential customers. Is it suitable for their tastes and preferences?, in order to achieve satisfaction, loyalty and retain customers for a long time.
2-2 Customer Retention
With the multiplicity of customer needs and desires, the diversity and complexity of products, which emerged as a result of changes in the surrounding external environment, especially current developments in the field of interest in technology, product design and quality, branding, and interest in other production and marketing activities, researchers’ interest and focus came to the issue of customer retention and the extent of its importance to companies. The existing competition Among companies in the market lies not only in the production and marketing of products, but rather their ability to continuously satisfy customers’ needs and desires and change in their tastes. The customer is the basic rule for increasing sales and achieving profits, and thus it is noted that companies need to develop their resources and capabilities, especially marketing, in order to win customers through. The commitment of companies to proactively provide products with the specifications and design that the customer prefers, and this indicates the strength of the company in achieving its goals, including customer satisfaction and maximizing his loyalty to the company’s products in order to make him happy and then retain him.
2-2-1 the concept of customer retention
Customer retention means working to meet the customer’s needs and desires and change his taste in a way that exceeds his expectations, which contributes to increasing his loyalty to the company’s products and its brand. To achieve this, companies must collect data and work to build a broad base of permanent customers for the company, and this will achieve satisfaction. Happiness is one of the important measures in comparing the expected or planned performance with the actual or achieved performance of the products presented to the market. The low level of customer satisfaction leads to the customer moving to other competing companies that seek to satisfy their preferences by implementing their expectations [18]. Hence, customer retention is an effective indicator of achieving goals by providing customers’ needs, which is an opportunity to gain their loyalty to a company’s products and their support for its brand. Therefore, it can be said that managers at the highest administrative levels must contact their regular customers, listen to their suggestions, and learn about their reactions to the products provided. The most successful companies are able to significantly raise customer expectations [19]. Among the concepts of customer retention are those brought by researchers and thinkers in the field of marketing, sales, and branding. Also (Mandal, 2016, 771) [20] defined “Customer retention” is “A form of loyalty related to loyal behavior measured by customer buying behavior as indicated by the high frequency of customers making product purchases”. Both (Hassan & Chebarka, 2018, 471) [21] defined “customer retention” as “those activities and actions that companies undertake to limit the customer’s transfer or preference for products.” Competing companies,” while (Yilmaz & Ferman, 2017, 366) [22] They defined it as “those marketing efforts that companies wither and are still making in order to retain their customers to achieve their goals as soon as possible,” while (Sliż & Delińska, 2021, 68) [23] defined it “the extent to which companies can meet customers’ preferences and current and future desires in a way that increases the frequency of purchases over time,'' while (Khalifa, 2022, 130) [24] defined it as “a group of customers who continue to interact and communicate. And their dealings with the company and its products throughout the year, expressed as a percentage of permanent and potential customers at the beginning of each year.”
2-2-2 the importance of retaining customers
The importance of retaining a customer is no less important than other activities, tasks, and administrative and marketing decisions taken by the company, especially in the long term [25]. As it is known, maintaining an existing customer has more impact than obtaining a new customer, in other words, the more the number of customers who leave their dealings with a company, the greater that company’s losses in sales in the market [26]. It has also been shown that the cost of acquiring a new customer is 5 times greater than the cost of maintaining an existing customer, and that the return on investment is 10 times higher in customer retention than when the company searches for another customer [27]. Thus, it is noted that companies depend on their revenues by gaining the loyalty of their customers and retaining them, and this cannot be random except through studying the market and the external environment surrounding the organization [28]. Accordingly, we believe that companies that want to obtain the benefits and benefits of customer retention are required to develop an integrated vision and strategy to manage their marketing activities in meeting customers’ needs and desires, which will enhance their position in the market by winning new customers and maintaining current customers, especially In the long run, they are the source of the company's survival, growth, and increase in market share.
2-2-3 Dimensions of customer retention
(Awwad & Al-Garalleh, 2014),(Al-Hussein & Al-Jazouli, 2019), (Amaal, 2020), (Abu baker, 2020), (Musa & Nasiru, 2021), (Sameh & Nancy, 2021), (Al-Shaykhani, 2022) and (Al-Dulaimi, 2022) [29-35] they are indicated that the dimensions of customer retention are (guidance, information systems, and Human Resource, customer trust, and customer satisfaction). The following is an explanation of each of them:
1. Guidance
Direction means companies' readiness and ability to meet market and customer requirements, and this would have a direct and positive impact on customer satisfaction, which is one of the company's indicators towards achieving its goals, including maintaining its current customers and increasing their loyalty towards its products and brand. The customer retention process also requires careful guidance through which the reasons for customers moving towards competing companies' products are revealed and work is done to provide high-quality products by developing the marketing mix and providing accurate market information to address them and limit the shift.
2. Human resources (HR)
(HR) means “the sum of individuals who constitute the driving and working force in organizations. The organization focuses on the participation of employees and workers in decision-making, selecting, training, evaluating and rewarding them, in addition to following up on the organization’s leadership and working to improve the organizational culture. They are also considered one of the most important main pillars that determine the success of an organization or their failure, so we see companies seeking to attract and select effective human resources, train them and maintain them, which is reflected in enhancing their performance in the company and their dealings with the surrounding environment.
3. Information systems
It is defined as “a group of human and automated elements that work together to collect, process, analyze, and classify data according to specific rules and procedures in order to provide it and make it available to decision makers in the form of appropriate information that can be used in planning and decision-making.” The marketing information system is important in providing information related to internal operations and external market intelligence. It helps in planning, control, and executive functions in the company by providing information at specific timings to help decision makers.
4. Customer trust
Trust is based on customers' evaluation of the characteristics of companies' products, based mainly on their motivations, behaviors, and subsequent use of the product. Therefore, trust towards products varies from one customer to another, and trust is of great importance in exchange processes, whether for the company or the customer, as it saves stress in activities and decision-making, and supports... The reciprocal relationship with the customer is the key to the success of international business relations, in addition to the fact that the main advantage of trust lies in customer loyalty, which in turn leads to the sustainability of long-term relationships with customers.
5. Customer satisfaction
Customer satisfaction means “the customer’s reaction and the evaluation that follows the process of purchasing the product, that is, after consuming or using the product”. Customer satisfaction also determines the value achieved by the company through the customer, which is represented in the extent of the company’s ability to achieve satisfaction and gain customer loyalty. By providing the best products according to spatial and temporal considerations and at acceptable price and quality, as the company’s goals, including increasing sales and profitability, cannot be achieved except by achieving a level of satisfaction, and this is achieved through the company’s insistence and continuity on meeting Customer needs and desires.
3-1 An overview of the furniture stores researched and operating in the northern region
1. Vana Store
It was founded in 1934 AD in Turkey, and is considered one of the leading stores in the field of manufacturing and marketing furniture in the world. It has branches in most countries of the world, including Iraq, and offers a diverse selection of furniture products that suit customers’ needs, desires, and tastes. It is also interested in presenting the product in modern colors that suit the customer’s ambitions. In addition to paying attention to the quality of the product and its price compared to competitors, it also possesses experience and skills in the field of production, supply and marketing, as its working members are distinguished by acquiring experience and skill in a way that develops its production and marketing capabilities. Its efforts were also linked to thinking about entrepreneurship, expansion, prosperity, and improving the quality of lifestyle for consumers.
2. Istikbal Store
It was founded in 1957 AD in Turkey, and has succeeded in marketing its products internationally. It is among the leading brands in Turkey. It is distinguished by its many branches operating in the world, including the Iraq branch in the capital, Baghdad, and the governorates of the Kurdistan Region of Iraq, Nineveh and other governorates. It is interested in the diversity and uniqueness of its products in Providing wooden products and focusing on design, quality, and providing after-sales services, as it worked on producing types of furniture such as doors, windows, cabinets, bedrooms, tables, and chairs until the eighties of the last century, while maintaining the satisfaction of customers’ needs and desires. It was not limited to producing one product, but rather worked To add new products to its product range, which includes indoor and outdoor furniture, it is also distinguished by the skill of its personnel working in the field of industry and marketing, and trains them from time to time to be more prepared to meet the demands of the local and international market, taking into account the provision of products at acceptable prices.
3. Bellona Store
It was established in 1997 AD in Turkey. It specializes in manufacturing and marketing furniture and has a global reputation. It has grown to become a subsidiary of the (Erciyes Anadolu Holding Group). It has an experienced and skilled workforce. It owns a number of technologically advanced machines, equipment, and sales systems. It offers a variety of representative furniture. In bedrooms, living room furniture, beds and chairs, it is concerned with the quality of products, design and customer satisfaction by meeting his needs. Its products are made of high-quality materials and at competitive prices, which makes them an excellent choice for customers. It has branches in a number of countries around the world, including Iraq in the Kurdistan Region of Iraq, Nineveh, Dohuk, and Baghdad.
All of the surveyed stores offer their goods and services to consumers, organizations, hotels, restaurants, universities, schools, and other public and private institutions. They also work to provide ready-made products according to customer demand at competitive prices. They also provide grants and material and moral aid to charitable organizations on multiple occasions, participate in exhibitions and conferences, and provide advice and support in an unlimited manner. Limited.
3-2 Description and diagnosis of the research variables
The following table describes the descriptive research variables for the sample studied and their diagnosis.
No. | % | Variables Dimensions | Variables |
35 | 64% | Male | Sex |
20 | 36% | Female | |
55 | 100% | Sum | |
10 | 18% | Less than 20 year | Age |
15 | 27% | (20-25) year | |
22 | 40% | (26-30) year | |
8 | 15% | More than 31 year | |
55 | 100% | Sum | |
32 | 58% | Married | Marital status |
23 | 42% | Single | |
55 | 100% | Sum | |
12 | 22% | Less than 3 years | Duration of work in the store |
28 | 51% | (3-6) years | |
15 | 27% | More than 7 years | |
55 | 100% | Sum |
Source: Table prepared by researchers based on the outputs of SPSS VER 26.0
Table (1) Description of the descriptive research variables and their diagnosis
3-3-1 Testing simple and multiple correlations between the two research variables (Ambidexterity marketing prowess and customer retention)
The first main hypothesis states: “There is a statistically significant correlation between Ambidexterity marketing prowess and customer retention at a significance level of 0.05 and at the overall level, as shown in the results of the correlation table (2).
Ambidexterity Marketing Prowess | Independent Variable
Dependent Variable |
0.74** | Customer Retention |
n=55 p ≤ 0.05
Source: Table prepared by researchers based on the outputs of SPSS VER 26.0
Table (2) The correlation between marketing prowess and customer retention
The correlation results in Table (2) and at the overall index level show that there is a statistically significant correlation between Ambidexterity marketing prowess as an independent variable and customer retention as a dependent variable by extracting the value of the simple correlation coefficient calculated as (0.74**) at a significance level (0.05). This, if anything, indicates that Ambidexterity marketing prowess plays a major role in enhancing the stores under study in retaining their current customers, especially final consumers. This reflects their strength in the extent of their capabilities in discovering and investing in market opportunities and with high marketing flexibility, which gives them an incentive to develop their current products and introduce new products and compete with them locally, internationally and globally.
Thus, the first main hypothesis was accepted, which states that “there is a statistically significant correlation between Ambidexterity marketing prowess and customer retention at a significance level of 0.05.” In order to verify the sub-hypothesis of the first main hypothesis, which states: “There is a statistically significant correlation between each of the dimensions of Ambidexterity marketing prowess and the dimensions of customer retention, the values of multiple correlation coefficients between them and at the micro level were extracted, as shown in Table (3) the following:
Exploring opportunities | Investing opportunities | Flexibility Marketing | Independent dimensions Dependent dimensions |
0.855** | 0.810** | 0.825** | Guidance |
0.815** | 0.790** | 0.810** | HR |
0.780** | 0.765** | 0.795** | Information System |
0.755** | 0.740** | 0.775** | Customer Trust |
0.720** | 0.715** | 0.750** | Customer Satisfaction |
n=55 * p ≤ 0.05
Source: Table prepared by researchers based on the outputs of SPSS VER 26.0
Table (3) Results of multiple correlations between dimensions of Ambidexterity marketing prowess and customer retention.
It is clear from Table (3) that there is a statistically significant correlation between the opportunity discovery dimension, as a dimension of Ambidexterity marketing prowess, and the guidance dimension, as a dimension of customer retention. This is reinforced by the correlation coefficient value of (0.855). This means that discovering market opportunities contributes to directing working individuals. Towards retaining existing customers, and working to meet their needs and desires.
With regard to discovering opportunities and its relationship with human resources, the result of the correlation coefficient appeared positive at (0.815), which means that discovering opportunities contributes to enhancing the skills of individuals working in retaining current customers.
It is also noted that discovering opportunities plays a major role in strengthening the information systems that the surveyed stores possess, and this is indicated by the value of the multiple correlation coefficient (0.780), which would enhance their ability to retain customers by constantly updating the customer information base.
It also became clear that discovering market opportunities has a positive moral relationship with customer trust, and the value of its correlation was (0.755), which reflects the strength of the relationship between discovering market opportunities and working according to the principle of customer trust.
It is also noted that there is a positive moral correlation between discovering opportunities and customer satisfaction (0.720). This means that discovering market opportunities and working to meet the needs and desires of those markets will achieve customer satisfaction, especially the final consumer.
Thus, the rest of the dimensions of the independent variable (Ambidexterity marketing prowess) had significant and positive correlations with the dimensions of the dependent variable (customer retention), and this was explained by the results of the values of the multiple correlation coefficients. Which means accepting the research sub-hypothesis of the first main hypothesis, which states that “there is a statistically significant correlation between each dimension of Ambidexterity marketing prowess and each of the dimensions of customer retention at a significance level of 0.05”.
3-3-2 Testing the effect of the independent variable (Ambidexterity marketing prowess) on the dependent variable (customer retention)
After identifying the results of the analysis of the total and partial correlations between Ambidexterity marketing prowess and customer retention, and explaining their moral and positive values, the procedural outline of the research and its hypotheses require determining the degree of influence of Ambidexterity marketing prowess on customer retention at the macro level, and this is what was stated in the second main hypothesis, which states that “ There is a statistically significant effect of Ambidexterity marketing prowess on customer retention at a significance level of 0.05, and this is shown in Table (4).
Ambidexterity Marketing Prowess | R2 | F | Independent variable
Dependent variable | ||
B0 | B1 | Calculated | Tabulation | ||
0.810 (0.890) | 0.885 (8.55) ** | 0.81 | 139.25 | 4.01 | Customer Retention |
p≤ 0.05 n= 55 df = (1 , 54)
Source: Table prepared by researchers based on the outputs of SPSS VER 26.0
Table (4) the effect of Ambidexterity marketing prowess on customer retention
After reviewing the results of the regression analysis, it was found that there was a statistically significant effect of marketing prowess on retaining customers, as the calculated (F) value reached (139.25), which is greater than its tabulated value of (4.01) at two degrees of freedom (1,54) and at a significant level ( 0.05) and the coefficient of determination was (R2=0.81), meaning that (81%) of the differences are explained by the independent variable (marketing prowess) with the dependent variable (customer retention). By observing the value of (b0) and (b1) and the (t) test, it was found that the value The calculated (t) was (8.55), which is greater than its tabulated value of (1.67) at two degrees of freedom (1,54) and at a significance level (0.05).
Thus, the second main hypothesis is accepted, which states that “there is a statistically significant effect of Ambidexterity marketing prowess in customers retention at a significance level of 0.05”.
After reviewing the content of the research in both its theoretical and applied aspects and discussing the results reached by the research, the most important conclusions can be stated as follows:
The results of the statistical analysis showed that there is an impact of the dimensions of marketing prowess on retaining customers, and this is explained by the values of the determination coefficients r, which were all significant, and this would reflect positively in the continuity of marketing activities provided by organizations and confronting competitors in the market.
Funding: No funding sources.
Conflict of interest: None declared.