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.     

Do Mystery Shoppers Really Predict Customer Satisfaction and Sales Performance?

Mystery shopping (MS) is a widely used tool to monitor the quality of service and personal selling. In consultative retail settings, assessments of mystery shoppers are supposed to capture the most relevant aspects of salespeople’s service and sales behavior. Given the important conclusions drawn by managers from MS results, the standard assumption seems to be that assessments of mystery shoppers are strongly related to customer satisfaction and sales performance. However, surprisingly scant empirical evidence supports this assumption. We test the relationship between MS assessments and customer evaluations and sales performance with large-scale data from three service retail chains. Surprisingly, we do not find a substantial correlation. The results show that mystery shoppers are not good proxies for real customers. While MS assessments are not related to sales, our findings confirm the established correlation between customer satisfaction measurements and sales results.     

The relationship between ethical and customer-oriented service provider behaviors

This study examines the relationship between the ethical behavior and customer orientation of insurance sales agents engaged in the selling of complex services, e.g. health, life, auto, and property insurance. The effect of ethical and customer-oriented behavior, measured by the SOCO scale (Saxe and Weitz, 1982), on the annual premiums generated by the agents is also investigated. Customeroriented sales agents are found to engage in less unethical behavior than their sales-oriented counterparts. Further, sales-oriented agents are found to perceive greater levels of unethical behavior among their significant others. Alarmingly, higher levels of sales premiums are found among those agents who engage in unethical behavior.     

Measuring customer orientation of a salesperson: Modifications of the soco scale

This article addresses modifications made to the Michaels and Day (1985) version of the SOCO (selling orientation customer orientation) scale. Two modifications were made on the basis of pilot interviews conducted with industrial buyers. First, the scale items were changed to refer to a particular salesperson rather than salespeople. Second, the 9-point scale was changed to a more conventional 7-point scale. Further, in order to provide all respondents with the same frame of reference, scale instructions were modified to refer to the respondent's most recent buying situation. Scale properties were evaluated using the updated paradigm suggested by Gerbing and Anderson (1988). Unidimensionality of the scale was insured through the use of a confirmatory factor analysis program. The reliability of the scale is higher than that reported by Saxe and Weitz (1982), and Michaels and Day (1985). Convergent and discriminant validity were also assessed. The scale as modified in this article can be used to assess buyers' perceptions of salespeople and could provide sales managers with a means of assessing long-term aspects of a salesperson's performance. © 1995 John Wiley & Sons, Inc.     

Customer and selling orientations of retail salespeople and the sales manager's ability-to-perceive-emotions: A multi-level approach

Drawing from the mental ability framework and information processing theory, two studies embedded within the B2C retail setting investigate the role of the sales manager's ability-to-perceive-emotions in the complex non-linear relationships between salespeople's customer and selling orientations on one side, and its outcomes (sales performance and customer re-purchase intention) on the other. Using multilevel data from salespeople and their managers, Study 1 tests a theoretical model of salesperson orientation and performance, while Study 2 further verifies the results of Study 1 from the customer's perspective. Both studies find strong empirical support for a curvilinear, inverted U-shaped effect of a salesperson's customer orientation on sales performance and customer re-purchase intention. This effect is, however, reversed for the link between selling orientation and performance/re-purchase intention, where results indicate a U-shaped curvilinear relationship. Furthermore, we show that the sales manager's ability to perceive emotions facilitates the effect of salespeople's customer orientation on sales performance.     

The Interplay of Emotion Regulation and Sales Experience in Salesperson Conflicts: Evidence from an Emerging Economy

ABSTRACT

It is human nature that personal interactions are often charged with emotions and laden with conflicts. Workplace encounters are not immune from this reality. Despite this, few studies have examined ways to reduce interpersonal conflict in the workplace. This study examines the interpersonal impact of emotion regulation on salesperson relationships with stakeholders. Using structural equation modeling, results of the analysis showed that salesperson's regulation of emotions was negatively related to interpersonal conflict with co-workers as well as with customers; and positively impacted customer-oriented sales behaviors. The results also support the moderating role of selling experience in the relationship between emotion regulation and interpersonal conflict with customers. That is, the negative relationship between regulation and conflict with customers is stronger for salespeople with lower sales experience. These findings put forward important managerial implications with regard to the recruitment and training of sales professionals.     

Exploring communication differences between women and men sales representatives in a relationship selling context

The purpose of this exploratory research is to investigate the different styles of communication used by women and men sales representatives in relationship selling. An analysis of in-depth interviews revealed that the language used by women sales representatives is more conducive to building customer trust and more suggestive of relationship selling behaviour than the language used by their male counterparts. That women sales representatives may draw upon nurturing language and behaviour learned in developing other relationships (wife, mother, daughter, sister or friend) to build customer relationships is consistent with role theory and supports a theoretical explanation for the lower levels of role conflict surprisingly reported by women sales representatives in previous research. The results suggest that in a relationship selling task, marketing managers should consider using sales representatives with a 'feminine' style for sales jobs requiring extensive customer relationships. Directions for future research are also suggested.     

Revisiting the Purpose of Selling: Toward a Model of Responsible Selling

Selling as a profession and sales management as an organizational function have undergone major changes that were driven by the evolutionary journey of the marketing discipline. The extant value cocreation paradigm is recrafting the purpose of selling. This paper explores the conceptual development of a selling paradigm that is more responsible to its customers. Specifically, in Business-to-Business (B2B) context, the cost of any selling behavior that compromises customer interest could be of disastrous proportions. Building on the theoretical foundations of self-regulation and job demands-resources theory, this paper develops a conceptual model of responsible selling by integrating self-leadership literature with the emerging paradigm of value-based selling. The conceptual model outlines several research propositions for empirical validation and discusses its potential implications for sales managers and sales organizations.     

Goal interdependence and quality in services marketing

Service quality is considered an important competitive edge because it generates repeat sales, positive word of mouth, customer loyalty, and competitive product differentiation. This study examines the impact of a company's cooperative or competitive orientation and the service provider's warm or cold communication style on customer evaluation of service quality. Results from 83 participants in a simulated bank interview experiment indicate that when the bank communicated a cooperative orientation they perceived it as offering a higher-quality service than when it had competitive or individualistic goals. The warmth of the service personnel contributed to high-quality service, liking the bank representative, future confidence in dealing with the bank, satisfaction with the interview, and willingness to be interviewed by the bank representative in the future. These results were interpreted as suggesting that companies who can demonstrate a strong cooperative orientation toward customers and whose service providers demonstrate warmth will be considered to offer high-quality services. © 1995 John Wiley & Sons, Inc.     

Salesperson CLV orientation's effect on performance

Previous studies show how strategies based on the customer lifetime value (CLV) can lead to an increase of profitability for a firm. In this context, marketing serves the purpose of maximizing CLV and customer equity (the CLV of current and future customers). For most types of service firms, salespeople are direct participants in implementing the CLV concept. However, prior research does not answer the question of whether or how salesperson CLV orientation can enhance profits. Using data on salespeople in a large Chilean retail bank, this study shows that the effect of salesperson CLV orientation on salesperson performance follows an S-shaped function (which is first convex and then concave). Additionally, data does not support the idea that the optimum level of CLV orientation depends on salesperson customer orientation, salesperson adaptive selling behavior, or salesperson experience (i.e., CLV-oriented behaviors could be effective across a wide range of salespeople). As such, this study addresses an important concern among researchers and managers that is related to how to increase the salesperson performance. The findings of this study suggest that firms need to monitor individual salesperson CLV orientation more closely.     

SALCUSTOR: A Multidimensional Scale for Salespersons’ Customer Orientation and Implications for Customer-Oriented Selling: Empirical Evidence From India

ABSTRACT

Recent studies have highlighted the limitations in the applicability of the selling-versus-customer orientation scale as a measure of a salesperson's customer orientation. Therefore, few scholars call for new research on identifying the underlying dimensions of customer-oriented selling and for developing a new scale. This study provides a new conceptualization of a salesperson's customer orientation and develops and validates a multidimensional scale to measure it. This scale, SALCUSTOR, uses multiple samples of data from salespersons from India. SALCUSTOR assesses the degree to which a salesperson (a) provides relevant and correct information to his/her customers, (b) understands and learns the underlying needs of the customers, and (c) maintains relationships with customers and thinks about their long-term benefits. We establish the reliability, convergent, discriminant, and nomological validity of SALCUSTOR. Managers can use SALCUSTOR to identify specific gaps in the three dimensions of customer-oriented selling behaviors of the salespersons, using appropriate intervention strategies.     

Market Orientation and Firm Value

Several studies in the market orientation literature demonstrate a positive relationship between a market orientation and firm performance. However, the mechanisms of this relationship have yet to be explored in detail. This article addresses such a gap by proposing a conceptual model that links market orientation to wealth creation in firms. The model posits that a market orientation guides investment in market-based assets that may be deployed to create customer value. The realisation of customer value helps to both capture and retain customers. Quicker and more extensive market penetration, shorter sales cycles, and decreased marketing and sales costs enhance the cash flow of a market-oriented firm. This may be recognised in higher valuations, which ultimately translate into higher share prices and wealth creation for the owners of the firm. This model is used to describe the creation of value in the Major Business Division of BT, a large information technology service company. Recent success in this Division of BT is attributed to the creation of a market orientation and customer value-based strategy and processes. The experience of BT provides a clear illustration of how a market oriented firm creates value for both customers and shareholders.     

Customer‐oriented selling: Exploring the roles of emotional intelligence and organizational commitment

Professional salespeople are often placed in situations where role conflict and ambiguity are prevalent. They are generally expected to sell a firm's products and services to generate immediate profits, while simultaneously building customer satisfaction and promoting lifetime customers and the long‐term economic viability of the firm. The concept of customer‐oriented selling illustrates the conflict, as salespeople are required to forgo immediate benefits in lieu of long‐term rewards. The purpose of this study was to determine the relationships existing between customer‐oriented selling, emotional intelligence, and organizational commitment. The results indicate that a salesperson's customer orientation level is significantly related to emotional intelligence. Implications of the findings indicate that managers should consider using emotional intelligence as a selection and human‐resource development tool, as improvements in emotional intelligence are correlated with greater levels of customer orientation. © 2004 Wiley Periodicals, Inc.     

Acquiring customers through online marketplaces? The effect of marketplace sales on sales in a retailer's own channels

Online retailers are increasingly using third-party online marketplaces (e.g., Amazon, Taobao) as an alternative sales channel to their website. While cross-channel sales elasticities have been established for many sales channel combinations (e.g., adding bricks to clicks), we lack an understanding of whether the use of third-party marketplaces grows or cannibalizes a retailer's sales. Practitioners argue that firms can build their e-commerce business through acquiring customers by selling on the marketplace. Indeed, a marketplace could complement a retailer's offering (e.g., acquiring new customer segments), although inventory effects might mitigate this complementarity. Alternatively, cannibalization might occur from losing customers from one's website to the online marketplace. The present research investigates which of the two opposing forces prevails using a time series of category sales data from one of the largest global marketplace sellers. The authors use vector autoregressive modeling to show that marketplace sales increase sales on a retailer's website (0.014% for every 1% in marketplace sales). This effect is strongest for categories with large choice and low product prices. Acquiring customers through the marketplace might be cheaper than through other sources (estimated at 24% of initial sales). However, online retailers should be aware that this strategy strengthens the marketplace and may have potential negative long-term consequences (e.g., through marketplace control of the customer relationship).     

Can sales leaders with humility create adaptive retail salespersons?

Although humility in leadership has been recognized as vital in leading salespeople to cope with unpredictability and unknowability in customers, the role of sales leader humility in promoting sales behaviors has remained underexplored. Our research aims to unfold how and when sales managers’ leadership humility nurtures retail salespersons’ adaptive selling behavior. Grounded on the dataset from managers and employees working in retail shops of a large telecommunication and computer company in Vietnam, the results reveal the role of retail salespersons’ customer knowledge, adaptive self-efficacy, and customer-oriented harmonious passion as the mediation paths for the linkage between sales leader humility and retail salespeople's adaptive selling behavior. The findings further provide evidence for the role of sales managers’ adaptive selling as an enhancer for the impacts of sales leader humility on these mediators.     

Does managing customer accounts receivable impact customer relationships,and sales performance? An empirical investigation

The impact of accounts receivables on the performance of salespersons is largely ignored in sales literature. However, in many sales contexts, managing customers' accounts receivables is directly managed by the salespeople, and therefore substantially impacts their sales performance. Towards such sales contexts, in this empirical study, we study the effect of customer account receivables and salespersons' customer orientation on their relationship orientation and customer-related performance. We further analyse the direct impact of relationship orientation on customer-related performance. Using survey-based data from 224 salespersons based out of India, we empirically test the proposed model using partial least squares structural equation modelling. Our findings suggest that accounts receivables from customers and salespersons ‘customer orientation strongly impact relationship building and also improves customer-related performance. The salespersons’ relationship orientation also partially mediates the relationship between customer account receivables and customer-related performance. Therefore, this study provides much-required evidence to establish the salience of salesforce appropriately managing customers' account receivables so that its impact on their sales performance customer relationships are not adversely affected.     

Aesthetic labor and visible diversity: The role in retailing service encounters

This study endeavors to investigate the role of the appearance of customer service staff in forming customer perceptions. It also aims to fill the gap in existing knowledge by exploring the notion of visible diversity, for example, ethnicity, age, gender and perceived sexual orientation of store staff in service encounter from the customers’ perspective. The study adopted a qualitative, inductive approach in data collection using a sample of 30 customers from leading Australian fashion retailers. This study identifies three themes explaining customer perceptions of staff's aesthetic labor, namely mirroring appearance, matching appearance, and charming appearance, which can be explained by the social identity theory, role theory and aesthetic capital. It is found that staff appearance might affect customers’ intention to revisit but does not guarantee sales. In addition, based on signaling theory, the results show that age, ethnicity, gender and perceived sexual orientation of the retail store staff are meaningful factors in determining customers’ attitudes and behavior. This study is one of the first that takes aspects of visible diversity into account along with aesthetic labor and customer experience in a retail setting.     

Why should I believe this? Deciphering the qualities of a credible online customer review

Online customer reviews have been shown to have a powerful impact on the sales of a given product or service. However, the qualities of a ‘credible’ online customer review are still subject to debate. Existing research has highlighted the potential influence of a range of factors on the credibility of an online customer review, but relies heavily on quantitative methods and a ‘top down’ approach. In turn, this can reduce our understanding of the influence of these factors into merely discerning whether one pre-determined factor is more influential than another is. This paper adopted a ‘bottom up’ thematic analysis of individual qualitative interviews with a purposeful sample of consumers who regularly utilised online customer reviews. The findings uncovered a range of factors that influenced the credibility of an online customer review that were attached to a reader’s personal experience and to the content of a specific review, and inferred the existence of a reciprocal relationship between the constructs of review helpfulness and review credibility.     

Workplace Spirituality as a Precursor to Relationship-Oriented Selling Characteristics

Very few studies have looked upon the construct of workplace spirituality in sales organization context. This paper integrates workplace spirituality with sales literature. The paper points out that self-interest transcendence is a common aspect in the workplace spirituality concept which emerged a decade ago and in most of the relationship-oriented selling characteristics—customer orientation, adaptability, service orientation, and ethical selling behavior. Based on the common aspect of self-interest transcendence, we propose that workplace spirituality could be a causal precursor to relationship-oriented selling characteristics. We present guidelines for future research, implications for practice and a few potential downsides of workplace spirituality in sales organization.