Authors:

• Maria Gracner, University of Ljubljana, School of Economics and Business, PhD Student
• John William Cadogan, University of Liecester
• Gregor Pfajfar, University of Ljubljana, School of Economics and Business

Keywords:

Customer prioritization | Customer value management | Relationship marketing | International marketing | Headquarters–subsidiary relationships | Profitability 

Abstract:

This study examines customer prioritization, a strategic practice where businesses allocate resources and efforts based on customer value. While its significance in international marketing continues to grow, limited research exists on how customer prioritization is understood and applied in international firms operating across diverse cultural contexts. Addressing this gap, the study explores how international-marketing managers conceptualize customer prioritization and identifies its key components. Using a qualitative methodology, the study conducted in-depth interviews with Slovene international-marketing and sales managers from 13 export-oriented firms. Thematic analysis, guided by the Gioia methodology, identified four central themes: prioritization tactics and strategies, international customer profitability, headquarters–subsidiary relationships, and customer relationship management. The results indicate that companies adopt varied prioritization strategies influenced by factors such as product lines, customer size, industry significance, and the importance of foreign markets. Furthermore, subsidiaries play a pivotal role in collecting and relaying local market knowledge to headquarters, facilitating effective customer prioritization. This research advances the conceptual understanding of customer prioritization as a dynamic capability that shapes customer relationship management strategies in international firms and can enhance profitability in foreign markets.

The Sustainable Development Goals (SDGs) addressed in the article are:

• SDG 8 – Decent work and economic growth
• SDG 9 – Industry, Innovation, Technology and Infrastructure
• SDG 17 – Partnerships for the goals

The article is published in:
Economic and business review

The content is freely accessible at:

Customer prioritization: conceptualization to international application