Differences in Turnover Predictors between Multilevel and Single Level Direct Selling Organizations

Turnover among its salespeople is a significant issue for direct selling firms because attrition impacts the size and continuity of revenue generation by a firm's sales force. While turnover rates in direct selling are high overall, turnover rates and intentions to quit differ significantly between multilevel (ML) and single level (SL) forms of direct selling organizations. This study examines whether specific demographic and behavioural/attitudinal characteristics of direct salespeople correspond to differences in turnover between ML and SL salespeople. For many demographic variables there are significant differences between ML and SL salespeople, but none of these differences correspond to differences in quitting intentions. There are also significant differences between ML and SL salespeople on the behavioural and attitudinal variables studied. Analysis revealed that the relationship between some of these variables and quitting intentions differed substantially between ML and SL salespeople. These variables included job satisfaction, organizational commitment, perceived image of direct selling in the marketplace, and the importance of the job characteristics of work rewards and career growth. Specific managerial implications follow from these findings.     

Are performance appraisals a bureaucratic exercise or can they be used to enhance sales‐force satisfaction and commitment?

In some sales organizations the performance appraisal is treated as a bureaucratic exercise. As such, sales managers may essentially conduct appraisals in an arbitrary and perfunctory manner. This behavior could be based on the belief that conducting performance appraisals requires considerable amounts of time and effort, generates few rewards, and adds considerably to the manager's level of conflict and stress. The purpose of this research is to examine the relationships existing between performance appraisals, salesperson organizational commitment, and job satisfaction. If various characteristics of performance appraisals that build commitment and satisfaction could be identified, then managers may be more capable of using performance appraisals that yield positive results. A survey of 185 retail salespeople and 58 retail sales managers provided the data required to evaluate the relationship between satisfaction, commitment, and various aspects of performance appraisals. The results of the study indicate that managerially mediated factors may be used to enhance salesperson job satisfaction and organizational commitment. © 2001 John Wiley & Sons, Inc.     

Assessing sales contest effectiveness: the role of salesperson and sales district characteristics

Sales contests are widely employed to improve short-term sales performance, but knowledge about their effectiveness at the individual salesperson level remains sparse. Proponents argue that contests increase sales by stimulating salespeople, while critics say that contests merely encourage strategic timing of sales efforts. The authors draw on the strategic sales timing literature and goal theory to hypothesize that in a consultative selling scenario, sales will dip below the baseline before the contest but increase above the baseline during and after the contest. They posit that sales district potential and salesperson ability moderate the pre-contest sales dip, contest sales boost, and post-contest sales. Results from a model based on individual-level data on 1180 salespeople in 78 sales districts are largely supportive of the hypotheses. They highlight the need for researchers to integrate the role of strategic timing, salesperson, and sales district characteristics to assess sales contest outcomes. For practitioners, the findings show that in consultative selling situations, contests can generate a net sales increase despite the occurrence of timing games, and the sales gain is higher in districts with lower sales potential and among salespeople with higher sales ability.     

Scheduling sales force training: Theory and evidence

To have a productive sales force, firms must provide their salespeople with sales training. But from a profit-maximizing perspective, there are also reasons to limit training: training is expensive, it has diminishing returns, and trained salespeople need to be compensated at a higher level since their value in the outside labor market has increased. Due to these reasons, the following inter-related questions are not straightforward to answer: (1) How much training should be provided and how should training be scheduled over time? (2) How should compensation vary with training? (3) Should salespeople be asked to pay for some or all of their training? An analytical model is developed and analyzed using optimal control theory to provide answers to these questions. Thereafter, an empirical investigation is undertaken that broadly corroborates the analytical findings.     

Sales management coaching: a model for improved insurance company performance

Of all the things sales managers do to develop salespeople, many people believe the most important one is coaching. Coaching is defined as using skills, experience, and direction to help someone improve their performance. Coaching consists primarily of giving people feedback to reinforce what they do well while suggesting ways and means to improve. Coaching implies that everybody can improve and hopefully everybody wants to get better at what they do. Many sales managers erroneously believe that they have to be better than the person they are coaching at the skill set they are discussing in order to be a useful coaching resource to that person. To be a good coach requires an understanding of the skills being discussed and a desire to help someone improve in the performance of their job. The sales manager who knows how to provide that feedback will have more productive, effective, satisfied, and motivated salespeople. This paper provides an overview of the coaching sequence and the skills required to make it work with some comment on how this was successfully applied to a major national insurance company. Sales Management styles vary, and what works for one person may not work for another. Effective Sales Management Coaching can provide sales managers with the skills to help salespeople grow and develop professionally.     

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.     

Dynamic effects of newcomer salespersons' peer relational exchanges and structures on performance

This article explores the impact of key salesperson-to-salesperson relationship characteristics on the success of salespeople as they gain tenure in their firm. Focusing on newcomer salespeople and leveraging socialization theory, the authors investigate the influence of relational exchanges that salespeople engage in with their peers (unilateral and reciprocal exchanges) and their position in salesperson relational structures (teaming and spanning structures) on their objective sales performance over time. Integrating results from two studies, one that uses a longitudinal sample (three-year period) of salespeople from a single firm and another that relies on a sample of salespeople across three industries, the authors provide strong evidence for the differential roles of teaming and spanning structures on salesperson sales growth over time. Specifically, newcomer salespeople immediately benefit from being part of teaming structures, because these highly interconnected relational structures support individual socialization. As salespeople gain tenure, the effects of being part of teaming structures diminish, while being part of spanning structures becomes more beneficial. Moreover, spanning structures help newcomers offset the negative impact of teaming over their tenure. This study also isolates relational exchanges (unilateral and reciprocal) as precursors of teaming and spanning structures and identifies key contingencies of the effect of relational structures on performance.     

A situational analysis on how salespeople experience and cope with shame and embarrassment

The goal of this article is to explore the role that shame and embarrassment play within an organization boundary‐spanning context. For a sample of 458 salespeople selling financial services, measures are developed and hypotheses are tested concerning the effects of shame and embarrassment. The results suggest that the tendency to experience shame and embarrassment in personal selling leads to protective reactions (e.g., avoidance behaviors), and these, in turn, negatively impact performance (e.g., sales volume and quality of sales interaction). Hypotheses are tested on fitting and validation samples, both for salespeople focusing on prospecting tasks and salespeople focusing on relationship building. © 2002 Wiley Periodicals, Inc.     

Empowering salespeople: Personal,managerial, and organizational perspectives

The traditional seven steps of personal selling have remained virtually unchanged since the early 1900s. Meanwhile, the actual roles and duties of salespeople have pushed far into customer relationship management (CRM). Psychologically and professionally, salespeople need greater empowerment for their expanding CRM responsibilities. However, empowerment is a complex process requiring several individual, managerial, and organizational changes for successful implementation. As part of the empowerment process for its salespeople, companies need to provide supporting structures, processes, and incentives for customer‐oriented behavior. At the same time, the Internet and other telecommunications advances in the macroenvironment are accelerating empowerment changes in personal selling—mainly on the customer side of the exchange. To effectively and efficiently carry out their growing yet still poorly defined CRM roles, salespeople need to be comprehensively empowered, trained, motivated, and rewarded. Companies that most effectively empower their salespeople should reap substantial rewards in profitability and loyalty from both their salespeople and customers. © 2006 Wiley Periodicals, Inc.     

Power-Base Effects on Salesperson Motivation and Performance: A Contingency View

Purpose: The sales literature shows that motivation is a key determinant of salesperson performance. The literature also suggests that how managers use social power will have an effect on important organizational outcomes, including salesperson performance. This study examines the five bases of social power that sales managers use (reward, coercive, legitimate, referent, and expert) as moderating influences in the salesperson motivation (extrinsic and intrinsic)—salesperson performance linkage.

Methodology/approach: Data was collected from 128 salespeople using a cross industry survey. Eight hypotheses were developed and tested using SmartPLS (partial least squares).

Findings: The authors found support for five of eight hypotheses. Results and significant findings suggest that sales managers can impact sales performance in extrinsically motivated salespeople by using coercive and legitimate power. For intrinsically motivated salespeople, sales managers can impact sales performance by using coercive, legitimate, and referent power.

Research implications: Related to social power theory, the study suggests that salesperson performance is dependent upon a salesperson’s combined motivation orientation and the base of power used by the sales manager. The study also sets the stage for subsequent research on how managerial power can be studied as a moderator for other personal salesperson characteristics (e.g., self-esteem, self-efficacy, locus of control) and salesperson performance. In addition, understanding how these other personal characteristics interact with managerial bases of power to produce other organizational outcomes (e.g., job satisfaction, organizational commitment) are questions that sales researchers may wish to pursue via further study.

Practical implications: For practicing sales managers, the research study can provide guidance as to how they may tailor their use of power to best impact salesperson performance. For a manager to understand the motivational makeup of each salesperson, open communication and dialogue must occur at the onset of their relationship. Having the knowledge of what drives each salesperson, a manager can modify their leadership style (and choice of power base) to suit the situation. Customizing these sales management approaches may also have long-term benefits for the organization as studies show that doing so can lead to reduced levels of turnover as well as increased levels of performance.

Contribution of the article: This study is important to sales research, theory, and practice. The authors contribute to the selling and sales management literature by extending motivation and social power theories into the sales domain by showing that managerial power may be a key moderating determinant between a salesperson’s motivation and his/her sales performance. For practicing sales managers, we provide some insight and guidance for understanding how to throttle or moderate their use of various social power bases when dealing with individual salespeople who may differ in their motivation orientation, age, and degree of selling experience.     

Individual and contextual influences on the affective commitment of retail salespeople

Abstract

Salesperson characteristics as well as managerial approaches have been found to play an important role in the development of positive attitudes by salespersons towards an organisation. This study integrates these two research areas to investigate the personal and contextual antecedents of affective organisational commitment of retail salespeople. Fit theory and the literature on person–situation interaction provide the theoretical bases for explaining how salesperson selling skills, job liking, and empowerment individually and jointly influence affective commitment. A multilevel modelling approach is used to analyse data from 105 sales managers and 419 salespeople. Findings reveal that salespersons' affective commitment is influenced by their selling skills, degree of job liking, tenure, and empowerment. The results also indicate that the impact of selling skills on affective commitment is higher when empowerment is high. Based on the study's findings, implications for managing salespeople as well as limitations and suggestions for future research are offered.     

Demographics,job satisfaction,and propensity to leave of industrial salesmen

An extremely important and expensive promotional tool used by industrial marketers is personal selling. One of the major costs of personal selling is the cost associated with sales personnel turnover. Past studies in the sales management area have focused on the effect of organizational and psychological factors on the satisfaction of salespeople and their propensity to leave their organizations. However, no study has examined the interrelationships among salespeople's demographic variables, job satisfaction, and propensity to leave, even though such relationships have been studied for nonselling occupations. An empirical study done to at least partly fill this research void is described. The results provide new insights for researchers and practitioners with an interest in the sales management area.     

Entrepreneurship and Fitness: An Examination of Rigorous Exercise and Goal Attainment among Small Business Owners*

In today's society, the benefits of exercise and fitness are given much publicity. However, the relationship between exercise and the attainment of personal and professional goals for entrepreneurs has not been examined. Our study addresses the issue by examining the exercise regimens of 366 small business owners and the relationship of exercise frequency with the company's sales and the entre‐ preneur's personal goals. Specifically, this study examines the relationship that two types of exercise—running and weightlifting—have with sales volume, extrinsic rewards, and intrinsic rewards. Results indicate that running is related positively to all three outcome variables while weightlifting is related positively to extrinsic and intrinsic rewards but not to sales. Suggestions then are provided for future research.     

Salesperson Resistance to Sharing Market Intelligence in Sub-Saharan Africa

This article presents a framework for exploring salesperson(s) resistance to sharing market intelligence in emerging markets in Sub-Saharan Africa. The authors propose that resistance to sharing market intelligence with relevant others, including the firm, coworkers, intermediaries, and sales managers, is a function of various individual, leadership, and organizational (firm) factors. This framework helps researchers understand how and why resistance develops among salespeople. Moreover, implications from these findings are presented to assist practitioners who wish to persuade and encourage African salespeople to share market intelligence for the benefit of their firms.     

The practical know-how of selling: Differences in knowledge content between more-effective and less-effective performers

Results of both cross-sectional and longitudinal studies of salespeople indicate that more effective and less effective salespeople differ systematically in their knowledge of sales strategies, and to a lesser extent in their knowledge of customer characteristics. For the sales situation examined, more effective salespeople use specific, problem solving-oriented strategies to sell to customers and underlying, functional characteristics to describe customers; less effective salespeople use global, relationship-oriented strategies to sell to customers and surface structure, less functional characteristics to describe customers.The research was supported in part by a grant from the Division of Research, College of Business Administration, The Pennsylvania State University.     

When Stress Frustrates and When It Does Not: Configural Models of Frustrated versus Mellow Salespeople

The purpose of this study is to elucidate the stress–strain relationship by examining compound causes of frustration in the workplace. Drawing on configuration theory, this article describes stress patterns, that is, configurations of role stressors and social stressors, and underlying frustration and its negation, that is, mellowness. In addition, this article describes potential sources of such frustration‐stimulating stress patterns by examining constellations of employee and task characteristics. Based on a sample of 118 salespeople, the authors analyze the data using fuzzy‐set Qualitative Comparative Analysis—an analytic method pertinent to describing configurational patterns of causal factors. The findings from this study indicate the coexistence of alternative patterns of stressors for frustration. In addition, the findings show that configurational patterns for frustrated salespeople are quite different from those characterizing mellow salespeople. In summary, knowledge of these constellations of stressors helps sales managers detect conditions that frustrate, and develop strategies to diminish these conditions in order to improve sales force performance.     

An empirical study of salesperson stereotypes amongst UK students and their implications for recruitment

The success of recruitment efforts can have a major impact on sales force effectiveness. Students have long been considered a good source of potential sales recruits, but research has found students have generally negative perceptions of selling as a career. One reason for such perceptions may be negative stereotypes of salespeople held by students. However information on the content of UK sales stereotypes remains anecdotal at best. This study empirically examines UK business students' stereotypes of salespeople using a two-stage approach. Findings suggest that these stereotypes are generally negative. However, we create profiles of salespeople using our findings, and consequently uncover some positive aspects to the stereotype. The study provides instruction on how to use stereotypes in subsequent work, as well as how to utilise the profiles in recruitment efforts.     

The Influence of the Compensation System and Personal Variables on a Salesperson's Effective Listening Behaviour

Effective listening is crucial for salespeople to succeed in today's personal selling environment, yet poor listening is still one of the most important factors contributing to a salesperson's failure. Despite its importance, very little research has focused on effective listening in this context. This study proposes a model that explains the effective listening behaviour of salespeople in terms of their method of compensation, ability to use customer knowledge, intrinsic motivation, gender, education and experience. The findings suggest that the above factors, with the exception of experience, are significant determinants of effective listening in the sales environment. A discussion of theoretical and managerial implications is presented, and key areas for future research are suggested.     

Servant Leadership,Proactive Work Behavior,and Performance Overall Rating: Testing a Multilevel Model of Moderated Mediation

ABSTRACT

Purpose: The goal of this paper is to investigate whether salesperson proactive behavior mediates the relationship between sales manager servant leadership and salesperson overall performance rating by the sales manager. Moreover, it examines whether salesperson customer orientation and political skill moderate the sales manager servant leadership ? salesperson proactive behavior ─ salesperson overall performance. Design/methodology/approach: Empirical analysis is based on dyadic data from 181 industrial salespeople and their sales managers in a range of different industries (including both manufacturing and service industries). To analyze the multilevel moderated mediation process, this investigation uses Multilevel Structural Equation Modeling (MSEM). Findings: Sales manager servant leadership was positively related to salespeople overall performance rating through their proactive behavior except when their customer orientation was low. Moreover, this relationship between sales manager servant leadership and overall performance rating through proactive work behavior was stronger the greater the salespeople consumer orientation and political skill. Research implications: The study suggests that sales manager servant leadership is indirectly related to salesperson overall performance rating through salesperson proactive behavior. The findings also support subsequent research on salesperson values, skills, and behaviors as moderators in the servant leadership – proactive behavior – overall performance rating relationship. Understanding how these salesperson factors interact with sales management leadership to produce organizational outcomes (e.g., stress, engagement, organizational commitment) are questions that sales researchers may wish to pursue via further study. Practical implications: Sales managers should employ servant leadership to stimulate salespeople proactive work behavior. This study clearly indicates the salespeople need to adopt customer orientation and to have political skill. Hence, sales managers need to try to improve the customer orientation and the political skill of their salespeople through selection procedures or training programs. Originality/value: The relationship between sales manager servant leadership and salesperson overall performance through proactive work behavior has not been addressed and tested in the literature to date.     

Corporate entrepreneurship,customer-oriented selling,absorptive capacity,and international sales performance in the international B2B setting: Conceptual framework and research propositions

In the international business-to-business (B2B) setting, a firm's salespeople often have more direct, prolonged, and intimate contact with the customer and market environments than any other employees of the firm. In fact, for customers in many B2B markets, the salesperson is the face of the firm. The sales function can be characterized as an inherently entrepreneurial activity. Entrepreneurship is founded on knowing or seeing something others do not see, and the sales force has long been recognized as an important source of knowledge about a firm's customers and environment. However, there has been relatively little work linking entrepreneurship to international sales performance, especially in the B2B context.This paper focuses on the intelligence-gathering role of salespeople to firms practicing corporate entrepreneurship in the international B2B setting. More specifically, drawing on the theories of corporate entrepreneurship and the knowledge-based view of the firm, the authors develop a conceptual model that proposes international sales performance for firms practicing corporate entrepreneurship will be enhanced when salespeople practice customer-oriented selling and the firm's absorptive capacity is stronger. Recommended methodology for testing the proposed model is a single-informant survey of sales managers with firms in the domain of interest, using structural equation modeling with moderator tests. The paper concludes with implications and directions for future research.