“I think I can…I think I can”: The impact of perceived selling efficacy and deal disclosure on salesperson escalation of commitment

Salespeople have considerable autonomy in the choices they make with respect to both the types and amounts of resources they deploy in pursuing potential customer accounts and specific sales opportunities. Building from a prospect theory framework and also leveraging self-justification theory, this research reports the results of three experimental studies conducted on practicing salespeople. The experiments help shed light on several factors that might influence a critical form of salesperson resource allocation decision — the allocation of the salesperson's own ‘selling time’ which is devoted to a specific sales opportunity. Study 1 establishes that an escalation of commitment effect exists when salespeople pursue a new customer opportunity, and that “competitive intensity” is a key variable that attenuates the escalation of commitment effect. Study 2 demonstrates that a salesperson's “selling efficacy” – or their confidence in their abilities and decision-making in sales – has important, but mixed, effects on the salesperson's allocation of scarce resources. Finally, study 3 broadens this research by showing that environmental factors such as the extent to which the salesperson has ‘disclosed’ their pursuit of a new sales opportunity within their own organization can also influence the escalation of commitment effect on how they allocate resources in pursuit of that business. The article's broader contribution is that it offers an overdue and preliminary glimpse into the levers which shape and influence how, when, and why salespeople apply resources in the pursuit of new customers.     

Selling Value in Business Markets: Individual and Organizational Factors for Turning the Idea into Action

Modern business-to-business firms focus increasingly on understanding and selling value, as a strategic priority and to achieve marketing and sales excellence. Yet many companies struggle to implement their value orientation, without sufficient knowledge of how to translate it into sales practice. This study therefore examines value-based selling (VBS) as an implementation of value-based marketing at the sales force level. The proposed motivation–opportunity–ability framework integrates individual- and organizational-level antecedents, outcomes, and moderators in an attempt to explain the adoption and performance outcomes of VBS in business markets. Multilevel path modeling with cross-sectional survey data from 944 salespeople and managers in 43 sales organizations confirms the prediction that VBS enhances salespeople's performance, beyond that achieved with established selling approaches. However, firms need specific types of salespeople and dedicated organizational support for effective VBS implementation. A salesperson's learning orientation and networking competencies emerge as critical antecedents. Organizational value assessment tools can compensate for individual salespeople's lack of learning orientation; reference marketing efforts also strengthen the performance outcomes of VBS. Finally, VBS is most effective in organizational settings where perceived customers value demandingness is lower, enabling salespeople to use VBS as a proactive selling approach.     

CRM systems and organizational learning: An exploration of the relationship between CRM effectiveness and the customer information orientation of the firm in industrial markets

The firm's customer relationship management (CRM) system is frequently a central element of the knowledge management function of the firm. It integrates information from internal and external sources to guide managers and field personnel in the development and presentation of the firm's value proposition. But despite the widespread adoption of CRM systems by firms operating in business-to-business markets, there is continued management skepticism concerning the effectiveness of these systems and their association with the firm's overall “customer information orientation.” The present study seeks to shed light on these topics by evaluating the relationship between the customer relationship orientation of the firm and its use of CRM, as well as the association of CRM use with overall firm performance in B-to-B settings across a range of traditional business performance measures. The authors employ a multi-method approach to determine the key variables, including: database currency, internal database utilization, database accuracy and performance based reward systems utilized to operationalize the construct “the firm's customer information orientation” in order to develop statistical measures of the relationships of selected variables. The results of the study provide support for the finding that customer information orientation is indeed associated with CRM system implementation and that CRM use is associated with firm performance in B-to-B markets.     

How salesperson perceptions of customers' pro-social behaviors help drive salesperson performance

By conceptualizing customers' organizational citizenship behavior as a communication cue, a customer evaluation criterion, and a sales performance facilitator in a relational selling context, the authors empirically demonstrate the effect of salespeople's perceptions of their customers' voluntary, prosocial behavior on three components of sales performance. The authors first hypothesize and confirm that salespeople can perceive their customers to exhibit organizational citizenship behavior, and that this important customer cue can serve as a customer evaluation criterion. The authors then demonstrate how salespeople can respond to their perceptions of customers' organizational citizenship behavior in performance-enhancing ways. Results from a sample of 628 business-to-business salespeople suggest that customer-involved sales performance fully mediates the relationship between customers' organizational citizenship behavior and salesperson behavioral performance, and that salesperson behavioral performance partially mediates the relationship between customer-involved sales performance and salesperson outcome productivity. These findings highlight the important role customer-involved sales performance plays as an antecedent to a salesperson's individual performance. Support for the notion that salespeople's perceptions and interpretations of their customers' organizational citizenship behavior can facilitate personal selling and augment sales performance has implications for sales training, salesperson evaluation, and customer evaluation. The authors discuss these and other implications for B2B researchers and practitioners.     

Converting purchase commitments into purchase fulfillments: An examination of salesperson characteristics and influence tactics

This study explores the roles that salesperson characteristics and influence tactics play in converting customer commitments to sales fulfillments. A sample of 258 salesperson-customer interactions revealed that, by offering recommendations and exchanging information with customers, salespeople can increase the propensity for fulfillment of customers' purchase commitments. Conversely, it was discovered that salespeople fail to convert commitments into fulfillments when they utilize threats, promises, ingratiation, or inspirational tactics. Additionally, long-term orientation, customer orientation, and adaptive selling behaviors were not found to have an impact on the commitment-fulfillment relationship.     

The Effect of Sales Force Adoption on New Product Selling Performance

Although several studies have suggested that the sales force is a major contributing factor to new product success, few studies have focused on new product adoption by the sales force, particularly with respect to its relationship with selling performance. The present article presents empirical evidence on the impact of sales force adoption on selling performance. We defined sales force adoption as the combination of the degree to which salespeople accept and internalize the goals of the new product (i.e., commitment) and the extent to which they work hard to achieve those goals (i.e., effort). It was hypothesized that the impact of sales force adoption on selling performance will be contingent on supervisory factors (sales controls, internal marketing of the new product, training, trust, and supervisor's field attention), and market volatility. Therefore, this article also provides evidence of the conditions under which sales force adoption of a new product is more or less effective in engendering successful selling performance. The hypothesized relationships were tested with data provided by 97 high technology firms from The Netherlands. The results show that sales force adoption is positively related to selling performance. This finding suggests that salespeople who simultaneously exhibit commitment and effort will achieve higher levels of new product selling performance. Outcome based control, internal marketing and market volatility are also positively related to new product selling performance. The effect of sales force adoption on selling performance is stronger where outcome based control is used and where the firm provides information on the background of the new product to salespeople through internal marketing. Training and field attention weaken the adoption‐performance linkage. These findings may indicate that salespeople in The Netherlands interpret training as “micromanaging” and field attention as “looking over their shoulder.” We conclude with implications of our study for research and managerial practice.     

‘It's almost like taking the sales out of selling’—Towards a conceptualization of value-based selling in business markets

While the creation of superior customer value is regarded as fundamental to a firm's long-term survival and growth, little is known about the effective implementation of a firm's value orientation at sales force level. As the sales force plays a pivotal role in implementing marketing strategies, this study adopts a discovery oriented approach and conceptualizes value-based selling as an effective sales approach in business markets. Based on in-depth interviews with sales managers in a variety of industries, we identify and portray three salient dimensions of value-based selling, namely (1) understanding the customer's business model, (2) crafting the value proposition, and (3) communicating customer value. The selling behavior entails a mutual orientation and focuses on the value-in-use potential of the offering for the customer's business profits. We argue that value-based selling is a unique concept that differs from the established selling approaches and propose a conceptual model linking value-based selling to performance outcomes. To further advance our knowledge about the effective implementation of a firm's value orientation, we identify future research avenues embracing qualitative and quantitative research methodologies.     

The Significance of the New Venture's First Sale: The Impact of Founders' Capabilities and Proactive Sales Orientation

Initial sale success in the market with a new product is a critical milestone for a new venture. Failure at the introduction stage of a new product could have lethal consequences for the venture. In the present study, the authors investigate the role of a new venture company's first successful sale in the venture's future commercial success. The authors develop and test a model of the impact of the founders' entrepreneurial and commercial capabilities and proactive sales orientation on the significance of the first sale and sales growth of a new venture. Using survey data and partial least squares estimation, the results reveal that the founders' commercial capabilities have a positive effect on proactive sales orientation, while their entrepreneurial capabilities positively moderate the effect of commercial capabilities. Further, the results reveal that a proactive sales orientation positively affects the significance of the first sale and that value‐based selling approach positively moderates the effect of proactive sales orientation. Finally, the results reveal that the significance of the first sale is positively related to sales growth. Thus, the authors conclude that combining the founders' commercial and entrepreneurial capabilities strengthens proactive sales orientation and that, in turn, a proactive sales orientation particularly increases the significance of the first sale when new venture companies practice value‐based selling. Research has convincingly demonstrated proactive selling behavior to be one of the most powerful predictors of sales performance. Value‐based selling is a sales approach to identify, quantify, communicate, and verify value of a new product to the customer. Our findings suggest that founders who possess both strong commercial and entrepreneurial capabilities engage considerably more in proactive sales practice as compared with founders that only possess strong commercial capabilities. Hence, rather than hiring specific sales expertise, founders should develop their proactive, value‐selling capabilities.     

The effects of incentives and personality on salesperson's customer orientation

Numerous strategies for increasing customer orientation of salespeople, including customer satisfaction-based incentives and selective recruiting, have been suggested; however, little is known about their effectiveness. This study replicates and extends findings from two previous studies by testing the effects of customer and sales volume-based compensation and personality characteristics on the customer orientation of salespeople. Customer satisfaction incentives and salespeople's level of empathy were positively related to customer orientation. Sales volume incentives and job tenure were negatively related to customer orientation. Empathy moderated the effect of customer satisfaction and sales volume incentives on customer orientation. A discussion of the findings, managerial implications, and suggestions for future research are all presented.     

Emotions and salesperson propensity to leave: The effects of emotional intelligence and resilience

Emotions constitute a powerful psychological force that can significantly influence the behavior and performance of salespeople. However, emotions in the workplace still constitute an under-developed area of study, mainly in the field of sales. Sales turnover is also particularly important in relation to sales management due to the nature of sales positions, their historically high turnover levels, and the difficulty involved in filling them.In view of the need to broaden knowledge on how to more successfully retain valuable salespeople, and the fact that B2B selling jobs are not the same across the board, this paper, while controlling the type of selling situation, analyzes the influence of two emotional skills (i.e. emotional intelligence and resilience) on salesperson propensity to leave their organization, both directly and indirectly, through their impact on work–family conflict and emotional exhaustion. The moderating effect of servant leadership perceived by salespeople on the relationship between emotional exhaustion and intention to leave is also addressed. Information provided by 209 salespeople from 105 enterprises from various industries confirms the hypotheses put forward and highlights the importance of encouraging the development of emotional skills as a way of alleviating work stress and reducing salesperson turnover. In addition, the results confirm the contribution of servant leadership towards reducing the effect of emotional exhaustion on salesperson intention to leave.     

An interdisciplinary approach to assessing the characteristics and sales potential of modern salespeople

Technology is becoming increasingly pervasive in industrial markets. So too are the necessary attributes of salespeople in this context changing, to require not only the typical selling skills of persuasion and tact, and the interpersonal skills usually considered relevant in consumer markets, but also the technical skills associated with technology transfer. The research reported here investigates these three aspects, and measures their influence on actual sales performance in a business-to-business context.     

Exploratory navigation and salesperson performance: Investigating selected antecedents and boundary conditions in high-technology and financial services contexts

Salesperson behavior aimed at improving internal company response to customer requests has received little attention in the industrial marketing literature in comparison to external, customer-directed behaviors. In this study, the phenomenon of “salesperson navigation” (SpN) is developed within the context of a research model of selected antecedents and boundary-conditions that influence a primary form of navigational behavior, or “exploratory navigation”. The research model's utility in predicting sales performance is tested empirically with data from two Fortune 500 sales forces. The findings show that the traits of competitiveness and expert power significantly enhance the salesperson's propensity to engage in exploratory navigation behavior. Exploratory navigation, in turn, is found to have a significant and positive association with salesperson job performance, contingent upon specific boundary conditions within the salesperson's own organization (i.e., sales management support and internal competitive climate). The article concludes by offering sales researchers and industrial marketing managers implications derived from the study as well as directions for further work.     

Social media in B2B sales: Why and when does salesperson social media usage affect salesperson performance?

The importance of social media usage by B2B salespeople has been well documented in the sales literature. In particular, a B2B salesperson's use of social media to prospect for customers and adapt their sales approach have primarily been shown to explain sales performance. However, an increasing body of literature in the sales domain has called for B2B salespeople to be ambidextrous by engaging in service activities aimed at helping their customers. We argue that by giving B2B salespeople an opportunity to communicate directly with their customers, social media is used by salespeople to proactively service their customers and hence can play a critical role in driving sales performance. Drawing from the Task-Technology Fit theory, we develop and test a conceptual model in which B2B salesperson social media usage affects salesperson performance indirectly through value-oriented prospecting and proactive servicing. Additionally peer social media usage was a key moderator in the relationship between B2B salesperson social media usage on the one hand and value-oriented prospecting and proactive servicing on the other hand. We test the model with data from 171 B2B salespeople and find that salesperson social media usage relates positively with proactive servicing and value-oriented prospecting. While we did not find support for the relationship between social media usage and adaptive selling, we did find support for the impact of all three sales activities salesperson performance. In addition, results show that peer social media usage has positive moderating effects on the B2B salesperson social media usage and value-oriented prospecting/proactive servicing relationships.     

Sales management control level and competencies: Antecedents and consequences

The pursuit of superior salesperson performance and higher levels of sales organization effectiveness is a growing management priority. Management control is an important antecedent to several aspects of salesperson performance and organizational effectiveness. However, prior research has neglected two important issues. First, the impact of market orientation on sales manager control approaches has not been previously considered. Second, sales manager competencies in behavior-based control have not been examined, as research has focused on the level and form of control. Market orientation and the critical sales skills required of salespeople have strong antecedent relationships with sales manager control. Also, sales manager control competencies play a significant role in shaping salesperson performance, and the impact of control competencies is larger than control level. Sales manager control competencies play an important mediating role between sales manager control level and salesperson performance and sales organization effectiveness. Our findings are based on a study of British companies in which five hundred sales managers were sent surveys and 300 usable responses (a response rate of 60%) were returned. Three important implications derived from this study include: (1) sales managers need to translate market orientation into sales force behaviors; (2) control strategy should be aligned with sales force priorities; and (3) time and resources should be invested in training sales managers.     

Salespeople's work toward the institutionalization of social selling practices

While the use of social media has become widespread among business-to-business organizations, the diversity of the social selling practices undertaken by salespeople and the extent to which they rely on them for their sales approach remain limited. Contrary to previous studies that emphasize the benefits of top-down approaches, we adopt a salesperson-centric approach, with the belief that the salesperson's agency is a key factor in the development of new sales practices related to social media. Using the concept of practice work and building upon institutional theory, we argue that social selling practices emerge in a bottom-up way, depending on the work initiated by salespeople. Based on a qualitative study of 32 B2B sales professionals, we show that salespeople perform three kinds of practice work: promotion, reconciliation, and disruption. These efforts can diffuse but also thwart social selling practices in sales organizations. This article offers new insights into how organizations can develop salespeople's depth of social media usage, and encourages firms to support salespeople's social selling initiatives instead of controlling them.     

Intangible sales team resources: Investing in team social capital and transactive memory for market-driven behaviors,norms and performance

Complex offerings and evolving customer needs increase the demand for market-driven salespeople. Yet many of today's managers struggle to effectively deploy this selling approach. In light of this reality, we develop and test a multi-level market capabilities framework to examine team-level drivers and boundary conditions of market-driven salesperson behaviors, norms, and performance. Data collected in a lagged, multi-source, cross-level field study of 246 salespeople nested within 54 sales teams provide evidence that investments in team social capital (ITSC) support the self-correcting, customer-centric, learning behaviors needed for performance. Results show that managers' ITSC are positively associated with team goal monitoring, commitment to service quality, and learning effort. Further, goal monitoring and learning effort increase commitment to service quality, which helps drive sales performance. We also find that transactive memory systems (TMS) can be an efficient team knowledge resource that strengthens the learning effort-to-performance and service quality-to-performance relationships.     

Social media use in B2b sales and its impact on competitive intelligence collection and adaptive selling: Examining the role of learning orientation as an enabler

This paper examines the use of social media by business-to-business (B2B) salespeople to assist in their job functions. The authors propose that a salesperson's attitude toward social media usefulness, as well as a salesperson's learning orientation, will influence how much a salesperson uses social media to assist in day-to-day job tasks. Additionally, the impact that the use of social media has on collecting knowledge about competitors, adapting to customers, and sales performance is considered. Accordingly, a broad literature review is provided to introduce extant theory contributing to the proposed model. The practical uses of social media by salespeople will be described, and then the theoretical foundation is built, encompassing social media use, goal orientations, and adaptive selling theory. Results of an empirical model are provided, followed by a discussion of theoretical and managerial implications.     

The effects of sales supervisor relationships on work meaning: The case of Canadian and Chinese salespersons

Although the meaning of work—an individual's understanding of the purpose and significance of his or her work—is often discussed, the issue of how to enrich the meaning of work for salespeople remains poorly understood. This study examines the role of sales manager-salesperson relationships in the development of work meaning in a cross-cultural context. To better understand how work meaning might differ in Eastern (collectivist) and Western (individualist) cultures, data were gathered from salespersons in the Chinese and Canadian telecommunications industries. Findings suggest that the development of work meaning among Canadian salespeople is ascribed to the perceptions of customer orientation and self-determination. Conversely, in China, a quality relationship with one's sales supervisor is a direct factor in the development of work meaning. Managers of global sales forces should carefully consider the cultural differences of their salespersons and how a close personal relationship can impact the understanding of the purpose and significance of work for their sales team. After discussing the findings, managerial implications and suggestions for future research are offered.     

Navigating the demands of increasing customer participation through firm and individual job resources

Many firms are increasing the amount of customer participation required in B2B sales in efforts to improve firm performance. Unfortunately, little is known regarding how increasing customer participation expectations effects the firm's salespeople. To address this issue, using the job demands-resources model, this study examines how increases in customer participation influence salesperson burnout and salesperson investment in resources, while accounting for the job resources of job autonomy and belief in innate selling ability. The potential moderating effects of competitive intensity are also captured. The findings, based upon a survey of 210 B2B salespeople, indicate that increasing customer participation does not increase salesperson burnout, but increases investments in resources aimed to increase salesperson professional development. Further, greater job autonomy was found to decrease salesperson burnout and increase investment in resources, with the latter being moderated by competitive intensity. Belief in innate selling ability, in contrast, was found to increase burnout and decrease investment in resources by salespeople, with the latter being moderated by competitive intensity. This study highlights the multiple positive and negative effects of increasing customer participation in B2B selling, providing new insights for how firms can set policies to enhance salesperson well-being and effectiveness in a B2B setting.