Preliminary Investigation of Entertainment Strategies Involving Alcohol: Implications for Professional Sales Education and Training in Business Markets

Purpose: With increased numbers of business to business (B to B) firms hiring professional sales students, it is important that both sales educators and sales managers understand entertainment’s influence and its potential consequences in the professional sales environment. This study examines the perceived role entertainment plays in today’s sales process and the importance of integrating entertainment topics into sales education and sales training. The purpose of this study is to update the sales entertainment literature, record its current importance in the age of sales systemization, and propose entertainment strategies and guidelines that can be shared in both corporate sales training programs and university professional sales curricula.

Methodology/approach: Partial least squares (PLS) methodology (SmartPLS 2.0) was used to examine the model and assess the relationships between the constructs and their indicators. Data was first gathered via online and in person surveys distributed to a total of 59 sales executives. To determine whether there were significant differences between path coefficients, PLS multi-group analysis was used (PLS-MGA) to compare sales practitioners’ response to sale educators and sales students. This method was used because conducting pair-wise group comparisons can result in family-wise error.

Findings: Results indicate significant positive relationships exist between entertainment orientation, internal bonding activities, and sales performance. The results confirm the path coefficients for the 3 groups, sales practitioners, sales educators, and sales students, did not differ significantly. Therefore, all groups rated external entertainment as being important to achieve sales performance and internally for bonding with co-workers.

Originality/value/contribution: The responses of B to B sales professionals, sales educators, and sales students are compared regarding their perception of entertainment in developing and managing sales relationships. Based upon the findings, sales professionals are provided with insight about the perceived role entertainment plays

in today’s selling environment and offered recommendations for collegiate classrooms and corporate on-boarding sessions that improve the knowledge of and ability to successfully manage entertainment of internal and external customers.     

Service Business Development in Small- to Medium-Sized Equipment Manufacturers

Purpose: This article explores service business development by small- and medium-sized equipment manufacturers (SMEMs). It focuses on underlying dynamic and operational capabilities in service business development.

Design/Methodology/Approach: The research design is based on case study research with nine companies from Germany, Italy, Sweden, and Switzerland.

Findings: The findings are twofold. First, the authors elaborate the phases and capabilities necessary for service business development. Second, they argue that these phases and capabilities depend on sales channels (direct sales versus indirect sales through distributors) and customer structures (a limited number of strategic customers versus many end-customers). SMEMs selling directly to a limited number of strategic customers develop organizational capabilities through four phases: (1) consolidation of service offerings, (2) job enlargements in organizational functions, (3) job enlargement in the key account teams, and (4) orchestration of partners to widen the solutions offered to customers. SMEMs selling indirectly through distributors to many customers develop organizational capabilities through the following four phases: (1) rearranging collaboration with distributors, (2) enlarging the service competencies of distributors, (3) modifying distributors into subsidiaries, and (4) enlarging jobs in the sales function of the subsidiaries.

Research Limitations/Implications: The research limitations are due mainly to the intrinsic nature of qualitative research.

Practical Implications: Managers can obtain guidance for service business development from the phases and capabilities described in the paper.

Originality/Value: The study offers a comprehensive framework for assisting researchers in conceptualizing service business development and operationalizing capabilities. The results provide testable propositions that can be used to guide future research.     

Double-Loop Sales Adaptation: A Conceptual Model and an Empirical Investigation

Purpose: The purpose of this article is to conceptualize and discuss the phenomenon of a double-loop sales adaptation in sales and its practical application. The resultant framework is developed from existing academic literature on adaptation in sales and marketing and inspired by the concept of double-loop learning.

Methodology/approach: The study adopted an abductive approach, iterating between the empirical world of two service firms and the theoretical world. The developed framework is refined with interview-based feedback from key informants in business-to-business organizations.

Findings: This article develops a framework for double-loop sales adaptation, which combines adaptations of selling behavior with a sales mindset.

Contribution: Although previous research recognizes adaptation as a central aspect of relationships, the link between adaptation and sales mindset has arguably been inadequate in the literature. Accordingly, this study focuses on sales adaptation occurring at the two levels of behavior and mindset.

Implications for practice: The proposed framework provides sales practitioners with a model for adaptation in their customer relationships. By distinguishing between two sorts of adaptation, managers can optimize resource allocation to both benefit the company and strengthen the relationship among parties.     

Conceptualization and Integration of Marketing Intelligence: The Case of an Industrial Manufacturer

Purpose: The primary goal of this article was to conceptualize a systematic marketing intelligence process for industrial manufacturers because, up until now, such concepts have only been focused on consumer goods settings. Hence, this article investigates how marketing intelligence activities are developed and managed effectively in industrial markets.

Methodology/approach: The authors conducted a case study of Maschinenfabrik Reinhausen, a German based manufacturer of regulation technology for power transformers.

Findings: We found that a systematic marketing intelligence process should be based on the resource- and market-based view of strategy as well as on the market orientation construct. When implementing marketing intelligence, the integration of the sales force within the whole process is the crucial lever for an industrial company. The formalization of the process is necessary to ensure its continuity and acceptance; however, the varying intensity allows the necessary flexibility of the process.

Research implications: The constraints of the decisive process steps of marketing intelligence have to be further enhanced for industrial markets. It is important to find out how the integration of the sales force can best be designed to incorporate reward systems and motivation structures, and how to establish a corporate marketing-minded culture throughout the organization.

Practical implications: The important steps for a well implemented marketing intelligence process are a preparation phase, followed by the gathering, analysis, and dissemination of information. This article highlights the success factors for each process step. Above all, managerial and organizational commitment is necessary for the implementation of the whole process.

Originality/value/contribution: By focusing on the industrial manufacturing business, this study provides deep insights into a neglected area of research. Light needs to be shed on marketing intelligence in industrial markets, where the lack of traditional market research has to be compensated.     

Learning-Oriented Sales Management Control: The Case of a Pharmaceutical Company

ABSTRACT

Purpose: The primary goal was to identify organizational conditions for developing a learning-oriented behavioral control system, an issue that has been neglected in previous studies.

Design/Methodology/Approach: The authors conducted a case study of Nippon Boehringer Ingelheim (NBI).

Findings: We found that a behavior-based sales management control system facilitates learning by salespersons when 1) the focus is on skill development, 2) fewer key performance indicators are being used, and 3) supportive supervision and knowledge sharing are promoted.

Research Limitations: Because this was a single case study, it is necessary to investigate other cases in other countries and to compare the results with those of NBI to develop theories about learning-oriented behavior control systems.

Practical Implications: In the early stages of sales reform, sales managers and medical representatives should not use multiple process indicators for multiple evaluations; rather, they should use a small number of process indicators (e.g., number of visits per day) so that all individuals concerned about a problem can share information and promote improvement.     

Developing a New Theory of Frontline Manufacturer-Retailer Relationships for Consumer Packaged Goods

Purpose: Frontline employees from consumer packaged goods (CPG) manufacturers, and the retailers’ employees who they interact with, play a crucial role in the in-store execution of product promotions and in ensuring that products are available for shoppers. This article investigates the development of interpersonal relationships between these frontline actors at the store-level of analysis and how these relationships influence in-store processes. We consider the theoretical and practical implications of our findings for sales force recruiting and sales management in the CPG retail channel.

Methodology/approach: Frontline relationships and in-store execution remain relatively under researched fields in the sales management and retail literatures. Given the lack of a well-established theoretical framework, we conducted a qualitative study in the grounded theory research tradition. We interviewed frontline personnel from manufacturers and retailers, their immediate managers and headquarters personnel and other industry experts. We took a holistic approach to data collection; also gathering other types of written, photo and video data for the purpose of iterative data analysis and developing a mid-range theory of relationship development between manufacturer representatives and retailer employees, the frontline employees tasked with executing marketing and merchandising strategies in the store.

Findings: We develop a model of frontline relationship development and performance consisting of 4 distinct stages: (1) working alongside, (2) building respect, (3) cooperative relationship (helping hands), and (4) collaborative partnership. We compare our findings with existing relationship marketing and relationship management theories. We find that an alternative theoretical framework may suit the particularities of the CPG retail channel better.

Research implications: This article provides insight into a very specific but important type of business-to-business relationships in the CPG retail channel that have seen little scholarly attention. It calls for re-evaluating the relevance of existing relationship marketing and sales management paradigms in the CPG retail channel. Future research could investigate the extent to which our model is applicable in sales environments beyond the CPG retail channel.

Practical implications: The study’s findings contribute to the practice of relationship marketing and sales management in the CPG retail channel. We present a case for a different approach of managing manufacturer-retailer relationships at the store level, a more functional tactic, which seems to deliver higher relationship performance than expected under the relationship marketing paradigm prevalent in sales and retail literatures. This different approach has direct consequences for the recruitment and management of a CPG sales force.     

One-to-One and One-to-Many Business Relationship Marketing: Toward a Theoretical Framework

ABSTRACT

Purpose. This work addresses mixed findings in relationship marketing literature regarding the importance of micro-level (interpersonal) relationships on firm outcome.

Methodology/Approach: The article leverages impression formation theory to advance a framework to understand one-to-one and one-to-many marketing relationships to better predict firm outcome.

Findings: The authors suggest that 5 framework moderators—the type and consistency of the encounters, relationship age, purchase frequency, relationship interruptions, and two customer side characteristics (i.e., need to evaluate [NTE] and need for cognitive closure [NFCC]”)—can qualify the relationship building process and impact the effectiveness of interpersonal and/or group relationships on firm outcome.

Practical Implications: The framework suggests that (1) highly consistent sales team behaviors reduce the risk of losing business in case of a sales team member leaving; (2) low frequency purchases are better suited for one-to-many selling relationships; (3) temporarily suspending relationships by individual salespeople is more harmful than suspending relationships by sales teams; (4) involving the customer in the acquisition process facilitates team selling; and (5) a positive first impression is more important for high (vs. low) NFCC and high NTE customers.

Originality/Value. The theoretical framework (1) distinguishes between individual-to-individual and individual-to-group relationships, (2) suggests a distinction between micro-level individual-to-individual and individual-to-group relationships and macro-level individual-to-firm relationships, (3) analyzes the impact of micro-level relationships under the influence of context-related and customer-related factors, and (4) provides managerially relevant guidelines for strategic sales planning.     

Building Bridges: The Company-Customer Relationship

ABSTRACT

With increasing emphasis on relationship selling, a bond is often formed between the salesperson and each customer. When a salesperson leaves to work for a competitor, customers may follow. Small companies are particularly vulnerable since they lack the resources necessary for many sales force retention strategies. The suggestion is made that such companies can implement “bridging strategies,” company-level relationship strategies designed to supplement the relationship between the sales rep and the customer, with the distinct objective of retaining customers following salesperson defection. Using the three levels of relationship marketing described by Berry and Parasuraman (1991), specific bridging strategies are identified and analyzed. The pharmaceutical industry is discussed as an example.     

An Exploratory Analysis of the Impact of Salesperson Customer-Orientation on Sales Force Productivity

Abstract

Consumer sovereignty is a concept that is well-established in the marketing literature. It is widely assumed the customer satisfaction is a crucial variable in determining the long-run prosperity of a business. Since the sales force often has the most contact with the customer, it seems logical that their efforts toward satisfying the client would be imperative. The selling orientation-customer orientation (SOCO) scale developed by Saxe and Weitz (1982) was used to determine the customer-orientation of 180 real estate sales personnel. The results of the research indicate that real estate sales representatives can practice customer-oriented selling without fear of losing sales due to their being too “soft” in their selling methods. In addition, the results indicate that companies wishing to enhance their sales personnel's level of customer-orientation may do so through professionally designed sales training programs.     

How Knowledge Management Capabilities Help Leverage Knowledge Resources and Strategic Orientation for New Product Advantages in B-to-B High-Technology Firms

ABSTRACT

Purpose: Current understanding of how new product development (NPD) teams use knowledge management capabilities to acquire, disseminate, and apply knowledge resources to achieve competitive advantages is limited by a lack of compelling theory supported by empirical evidence. This study provides a theoretical framework and empirical validation for how an NPD team manages knowledge resources and strategic orientation to enhance its knowledge management capabilities, which, in turn, lead to business-to-busienss (B-to-B) new product advantages.

Methodology/approach: A total of 100 sets of data was collected from B-to-B firms in U.S. high-tech industries. In order to validate the proposed hypotheses, we estimated the main effects using path analysis in AMOS, and tested for interaction effects using interaction term regressions.

Findings: Our findings show that the two dimensions of NPD knowledge management capabilities—acquisition and application—are important but differential drivers of product quality superiority and product differentiation. In testing whether NPD management capabilities matter for two product advantage constructs, we confirmed that product quality superiority can be enhanced by both NPD knowledge acquisition and application capabilities, whereas product differentiation can be increased strongly by NPD knowledge acquisition capabilities.

Research implications: Our research confirms the importance of strategic orientation as a driver of NPD knowledge management capabilities, which enhances understanding of how strategic factors operate under a resource-based view. Our results further provide direct empirical support for the knowledge-based view of firms, in that an NPD team’s abilities to manage and deploy knowledge-based resources by acquiring and applying NPD knowledge lead to competitive advantages, for outcomes of quality superiority and differentiation.

Practical implications: Our findings have relevance for managers in three ways. First, NPD knowledge acquisition and application capabilities have differential impacts on product quality superiority and differentiation. Second, in exploring NPD resource factors as antecedents, managers should manage levels of NPD market intelligence, resource tacitness, and NPD resource deployment differentially to directly improve NPD teams’ acquisition and application capabilities. Third, managers should not underestimate the importance of market and technological orientations in enhancing NPD knowledge management capabilities. Market orientation drives both NPD knowledge acquisition and application capabilities; technological orientation drives NPD knowledge application capabilities. Originality/value/contribution of the paper: An NPD team’s knowledge management capabilities generally, but differentially, mediate the relationships of knowledge resources and strategic orientation factors with new product competitive advantage. However, simply enhancing NPD knowledge management capabilities is not a panacea for developing product competitive advantage in B-to-B settings, because of their differential effects.     

Allocating a Promotion Budget between Advertising and Sales Contest Prizes: An Integrated Marketing Communications Perspective

This paper develops and analyzes a normative model for allocating a fixed, short-term promotion budget between product advertising and prizes of a rank-order sales contest for a homogeneous sales force when sales are driven by both personal selling effort and advertising. The model provides insights into how the optimal budget allocations vary with the synergy between advertising and selling effort, sales force size, salesperson risk-tolerance, perceived cost of effort, selling effectiveness and sales response uncertainty. The analysis highlights the need for and value of close coordination between marketing and sales management in designing a promotion program involving both advertising and sales force incentives.     

The Effects of Relationship Marketing on Share of Business: A Synthesis and Comparison of Models

ABSTRACT

Purpose: The article synthesizes the extensive empirical work on relationship marketing (RM) and compares the various conceptualizations to give a better understanding of the relational factors (i.e., characteristics of the business relationship) that improve a seller’s objective performance (i.e., share of business) in a business-to-business (B2B) services context. These conceptualizations, taken from the literature, link relational antecedents (i.e., communication, domain expertise, relational value, and mutual goals) to relational mediators (i.e., trust, satisfaction, commitment, relationship quality) to explore how they in turn affect a seller’s share of business.

Methodology/approach: All 4 models derived from the literature review were assessed using a dataset drawn from a survey of 948 client firm representatives of a Portuguese hotel chain in a B2B services context.

Findings: The best of the models in terms of model fit and prediction of share of business shows that only customer commitment directly drives a seller’s share of business, and simultaneous interrelated changes in customer trust and satisfaction, as well as customer perceptions of relational value, drive customer commitment, and so exert indirect effects on performance. The model that proposes that a seller’s performance is strengthened by simultaneous interrelated improvements in customer trust, satisfaction, and commitment (i.e., with these three mediators being conceptualized as a single, combined, higher-order mediator, termed relationship quality [RQ]) shows inferior fit. No combination of mediators (satisfaction, trust, or commitment) improves the seller’s objective performance over and above their individual effects (i.e., there are no synergistic effects).

Research implications: The literature review suggested four ways of modeling RM antecedents, mediators, and their effect on performance. Complex second-order constructs such as RQ lack explanatory power when predicting outcomes and mask the effects of individual relational mediators. Correct conceptualization is important, as conclusions vary drastically even with the same set of relational mediators and same dataset.

Practical implications: B2B service providers’ investments in RM will lead to improved share of business only if customer commitment is high or there is at least the potential to improve it. This requires an understanding of how valuable

the customer believes the relationship to be, and how the customer rates the relationship with the firm in terms of satisfaction and trust. A customer segmentation approach to relationship building and maintenance is advocated and detailed suggestions are put forward.

Originality/value/contribution: Apart from the work by Palmatier, the relationships between RM antecedents and mediators have not yet been examined simultaneously and findings are fragmented. The article provides a synthesis of this expansive literature. It contrasts different interplays between RM mediators, including their interrelationships as a higher-order construct, and explores possible synergy effects. Unlike previous work, this study focused on an objective measure of seller performance (i.e., share of business), whereas previous studies have tended to examine subjective measures, especially within the B2B context. Furthermore, four full models were assessed here, each of which included the antecedents to RM mediators and their links to objective performance.     

Live streaming commerce from the sellers’ perspective: implications for online relationship marketing

ABSTRACT

Live streaming has recently become a popular direct selling channel which offers small, self-employed sellers unseen levels of consumer interaction and engagement. While the extant research focused on consumer motivation and intention to shop via live streaming, little is known from the seller’s perspective. Indeed, the potential advantages of live streaming commerce are accessible to everyone, but sellers experience different levels of success with this medium. Using a mixed quantitative and qualitative approach, this study analyses Facebook data of live streaming sellers to assess the nature and extent of engagement metrics, and delineate the dynamic, interactive live streaming sales process. We identify four sales approaches and twelve strategies adopted in acquiring and retaining customers. This typology of sales approach representing seller-focused antecedents is mapped against the relationship process and outcomes to provide a framework for understanding relationship mechanisms in live streaming commerce.     

Guanxi,Communication, Power,and Conflict in Industrial Buyer-Seller Relationships: Mitigations Against the Cultural Background of Harmony in China

Purpose: This research aims to investigate how guanxi influences conflict occurrence and conflict-related behavior in transactions of equipment with state-owned enterprises (SOEs) against the cultural background of harmony in China. The influence of guanxi on conflict-avoidance behaviors is discussed, and a model is proposed depicting the relationship between guanxi, the selection of communication modality, the exercise of power, and manifest conflict.

Methodology/Approach: Data was collected from persons selling equipment in the oil industry. The partial least squares method is applied to analyze the collected data.

Findings: Guanxi at the individual level positively influences the use of informal communication and the exercise of non-coercive power and negatively influences the use of formal communication and the exercise of coercive power at the organizational level. The use of informal communication is inversely related to the intensity of conflict, whereas the use of formal communication and the exercise of coercive power are positively related to the intensity of conflict. The combination of these effects is that the guanxi between representatives of business partners is negatively related to manifest conflict at the organizational level.

Contribution: This empirical research is among the earliest studies attempting to examine how guanxi influences interorganizational conflict occurrence and conflict-related behavior in industrial buyer-seller relationships in China, and it reveals a significant relationship between guanxi and the selection of communication modality, the exercise of power, and the occurrence of conflict in a guanxi-intensive market in China.

Practical Implications: First, our findings will help members of the seller's management team, especially foreign members, to better understand the behavior of their Chinese employees. Secondly, our findings should help sellers improve the effectiveness of their conflict management to increase good word-of-mouth and maximize reorders. Thirdly, our findings should help the purchasing managers of SOEs to better understand how to manage conflict to lower the project risk. Lastly, firms doing business with SOEs should take both cultural and political factors into account in their business activities.     

Customer Involvement in Product Development: An Industrial Network Perspective

Purpose: In business markets, working with customers and users has become increasingly important to get knowledge about customer needs and to develop new products. The purpose of this article is twofold: (1) to develop a framework for analyzing customer involvement in product development in a business market context, and (2) to apply this framework to a particular company to describe and analyze how it practices customer involvement.

Methodology/approach: The article takes its main theoretical starting point in the industrial network approach, but also uses other literature from the innovation and product development field. The empirical study applies a qualitative case study approach and focuses on one company in the truck business.

Findings: The suggested framework deals with four key aspects of customer involvement: Why, when, how, and who. The observed pattern of the truck manufacturer shows how dealers, hauliers, and truck drivers are all part of the overall understanding of the customer. These actors are involved for different, typically very clear, purposes at different points in time through surveys, product clinics, and field testing. The pattern, referred to as mixed facilitative, is not one of close collaboration with individual customers, but one of broad involvement of several customers through business intelligence and direct involvement.

Research implications: First, the article provides researchers with a framework and method for studying customer involvement in product development. Second, the case study provides an illustrative example of the customer involvement pattern pursued by a leading company in a major industry. This enhances the understanding of the focal phenomenon, leads to managerial implications, and gives ideas for future research.

Practical implications: There are several managerial implications related to the why, when, how, and who questions. For example, it is pointed out that managers should consider involving customers more extensively than what seems to be common today—for example, by using customers as codevelopers, working with them throughout the entire development process (i.e., not only early and late), and including different types of users (with different requirements and wishes).

Originality/value/contribution of the article: The contribution lies in the development of a framework centered on the four key questions of customer involvement in

product development and using this framework for observing a pattern, and finding explanations and relating this pattern to how other firms are doing.     

The Myth of the Salesperson: Intended and Unintended Consequences of Product-Specific Sales Incentives

Product-specific sales incentives (PSIs), or "spiffs," have instigated conflict in business and sales for more than fifty years. PSIs are exactly what they sound like: incentives offered by manufacturers to salespeople to encourage them to promote certain products above those of competitors. PSIs have provoked considerable controversy. They are sometimes likened to "bribes," in that their purpose is to motivate salespeople to offer advice that might contradict what they would otherwise recommend. If a salesperson's job is to sell an array of products, how is it equitable for him or her to receive additional compensation for selling certain products above others? In addition, how are we to justify the bias that the presence of PSIs introduces into the selling process. There is concern that this causes negative consequences for stakeholders, including manufacturers, retailers, salespeople, and, of course, customers. How does this affect the competitive process?The research conducted explores the reaction to PSIs by people of different ages. It reveals a correlation between age, education, and reaction to PSIs. The findings correspond with the Josephson Institute of Ethics report, which found that younger adults tend to exhibit higher tolerance for unethical behavior. Examination of PSIs, like other sales incentives, reveals intentional and unintentional consequences to a wide array of stakeholders. The research indicates that there is value inherent in considering both the propriety and manner of implementation of sales incentives, such as PSIs.     

Improving relationships between sales and marketing: the relative effectiveness of cross-functional coordination mechanisms

ABSTRACT

The importance of effective sales and marketing working relationships is well known and this article examines the effectiveness of various coordination mechanisms used to improve this cross-functional relationship. Six coordination mechanisms are measured to identify their effect on sales and marketing conflict and collaboration, which in turn influence business performance. The results reveal that not all coordination mechanisms are equally effective. Structuring sales and marketing as a single unit and creating cross-functional project teams improve the interface, as do providing opportunities for job rotation and establishing cross-functional meetings. However, employing cross-functional training and co-locating sales and marketing do not influence this working relationship. Finally, reducing conflict and increasing collaboration between sales and marketing is shown to independently, and positively, influence business performance.     

BOOK REVIEWS

Purpose: Companies engage in business relationships for a variety of reasons, including specialization, product development, and building competitive networks. Research has demonstrated that mergers and acquisitions (M&As) may challenge ongoing business relationships. The purpose of this article is to investigate whether and how competition authorities consider business relationships when evaluating M&As.

Methodology: The article uses the documentation from 450 M&As reported to the Swedish competition authority to capture the way in which an authority evaluates M&As. The Swedish competition authority evaluation corresponds to other national and international evaluation procedures.

Findings: The findings indicate that the competition authorities neglect an important aspect of business life, namely companies forming business relationships. The competition authorities evaluate M&As on the basis of risk for price increases, and consequently disregard such issues as heterogeneity in demand and offerings, and values built into existing business relationships.

Originality/Value/Contribution: The article contributes to research on business relationships through exploring how a public authority deals with such relationships. It also contributes to research on mergers and acquisitions through examining how these activities are evaluated by competition authorities. Furthermore, the article contributes to competition research by reflecting on competition law concerning M&A regulations in relation to business relationships.     

Tradeoffs in Supplier Attribute Ratings in Supplier Selection across Strategic versus Non-Strategic Purchases

ABSTRACT

Purpose: This research identifies a customer perspective that is often ignored, neglected, or undervalued in B-to-B sales – the nature of the product itself. The pivot point is whether the product/service desired is strategic (critical to the company’s mission) or non-strategic (not critical to the company’s mission).

Methodology/Approach: A conjoint analysis was conducted for both types of purchases (strategic and non-strategic), assessing the tradeoffs and espoused preferences of four key attributes involving both the supplier and the product across three performance levels – (1) stability of the supplier, (2) reliability, (3) competitive pricing and (4) product quality.

Findings: The results indicate that B-to-B customers do make tradeoffs between suppliers based on stability, reliability, pricing and product quality. The direction of the tradeoffs depends on whether the purchase is a strategic or non-strategic acquisition. The results suggest that suppliers would benefit from understanding the relationship of their products and services to the B-to-B customer’s mission when the supplier is deciding how to improve performance.

Research implications: Too often there is a disconnect between B-to-B salespeople and their customers resulting in suppliers failing to reach performance goals. The research focuses on the importance of B-to-B salespeople uncovering whether or not the customer considers the nature of the product being considered as strategic or non-strategic to their business. The research helps to explain some of the mixed findings in the supplier selection literature.

Practical implications: The research points to the fact that customers analyze and make decisions differently depending on the type of product. Additionally, the research highlights the importance to customers of understanding the potential legal and financial risk of suppliers. This is important in that traditionally suppliers tend to focus on product features and benefits in their selling efforts. These results indicate that they should spend significant time discussing factors that illustrate legal and financial risk reduction to the customer of dealing with their companies.

Originality/Value/Contribution: The study offers a new look at an age-old problem of enhancing sales performance through a new lens by considering the nature of the product (strategic versus non-strategic) through the perspective of the customer. The findings help to explain the mixed results of previous research. To date, the nature of the product and tradeoffs of attributes that customers are willing to make depending on that product classification have not been the focus, though the results suggest that understanding customer decision-making through this lens may enhance supplier success.