Empathic Relationships in Professional Services and the Moderating Role of Relationship Age

Empathy has been identified as a key success factor for employees who interact with customers. Despite its overall relevance, only a few studies have acknowledged its multidimensional nature. Knowledge remains scarce about the relative impact of cognitive and affective empathy on relational outcomes. In addition, few pieces of research have explicitly acknowledged empathy as theorized within stage‐models focusing on the communication of empathy. The authors conceptualize empathy as a multidimensional construct perceived by the client. Empathy has to be communicated to be effective, while customers’ perceptions of empathy may also be more complex as they distinguish between cognitive and affective empathy. This article investigates the effects of perspective taking, emotional concern, and emotional contagion on trust and commitment. Drawing upon relationship stage concepts, the authors further argue that the influence is moderated by relationship age. Finally, this study investigates if employees benefit from being perceived as empathic partners in terms of “hard facts” (objective sales performance). Based on a data set from 215 business clients of a large consulting firm, this study adopts a structural equation modeling (SEM) approach by using multigroup analysis. To test the empathy–performance link, the authors aggregate customer responses nested in 84 employees and link perceived empathy with performance data. The results show that within B2B relationships, perspective taking exerts the strongest influence on trust, whereas emotional concern is the strongest driver for commitment. The results also confirm the moderating role of relationship age and that perspective taking leads to an increase in actual sales performance. This study underpins the relevance of empathy within services marketing, while providing a more detailed approach to account for empathy as a relation building tool. Practical and academic implications are also addressed.     

The impact of network capabilities and entrepreneurial orientation on university spin-off performance

Drawing on a database of 149 university spin-offs, we investigated the impact of network capability (NC), defined as a firm's ability to develop and utilize inter-organizational relationships, and entrepreneurial orientation (EO) on organizational performance. Not only do the results suggest that a spin-off's performance is positively influenced by its NC, but the findings also indicate that a spin-off's EO fosters competitive advantages. Although no direct relationship is apparent between EO and sales growth, sales per employee, or profit attainment, moderated hierarchical regression analyses reveal that NC strengthens the relationship between EO and spin-off performance. In sum, our research shows that a spin-off's organizational propensities and processes that enhance innovation, constructive risk taking, and proactiveness in dealing with competitors per se do not enhance growth and secure long-term survival. However, we found that NC moderates the relationship between EO and organizational performance.     

The influence of empathy in complaint handling: Evidence of gratitudinal and transactional routes to loyalty

While most studies on complaint handling are focused on performance outcomes, analysis of the processes that reinforce relationship quality is lacking. Building on the relationship marketing theory of reciprocal behaviours, this research proposes and tests a model of the effects of empathy as a particular relationship recovery investment. Addressing for the first time the role of gratitude in a complaint-handling context, this model assumes that both gratitude and transactional satisfaction mediate the influence of empathy on consumers' trust and commitment. Data from a cross-industry survey of phone and online complaints confirmed the proposed model.     

The Impact of Personality Variables,Prior Experience,and Training on Sales Agents' Internet Utilization and Performance

ABSTRACT

Emerging literature on the impact of the Internet on business-to-business (B2B) marketing has primarily focused on examining this issue from the perspective of manufacturers and buyers. This study focuses on the sales agent, a third prominent actor in B2B markets, and tests a conceptual model that relates a sales agent's personality, demographic, and user-situational constructs to that sales agent's Internet utilization for selling activities. Further, the model tested in this study relates a sales agent's Internet utilization to perceived sales performance. Findings in this study indicate that internal locus of control, learning orientation, and sales related Internet training relate positively to a sales agent's Internet utilization, and that a sales agent's age relates negatively to Internet utilization. Further, the results support a positive relationship between a sales agent's Internet utilization and sales performance. This study emphasizes that the Internet can be a productive tool for sales agents. The implications of the results of this study for sales agents with respect to training and recruitment are discussed and avenues for future research are suggested.     

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.     

The Convergence of Mirroring and Empathy: Communications Training in Business-to-Business Personal Selling Persuasion Efforts

Purpose: This study assessed the value of training in mirroring combined with training in empathy in a personal-selling setting when these two supplement training in more conventional areas. To a large extent, this investigation is exploratory. Previous attempts to probe into this topic do not appear in the literature.

Methodology: Students in personal-selling classes acted as sales representatives in an attempt to sell a service (attendance at a seminar) to small retailers. One group was trained in mirroring and another in empathy. Yet another received instruction in both mirroring and empathy. Finally, control-group members received neither mirroring nor empathy training. Chi-square tests, t tests, Tukey k tests, and an analysis of variance were used. The hypotheses were that mirroring and empathy training, and especially mirroring combined with empathy, would perform better than no training in these areas.

Findings: The analysis revealed that those who were trained in mirroring were more successful in obtaining intent to purchase than were control-group members. Likewise, trainees in empathy were more successful than those without training. Both of these experimental groups performed at levels that did not diverge significantly. Members of the group with instruction in both mirroring and empathy contributed more effectively than any other group.

Originality, Value, and Contribution: This is the first published study that systematically examined the effectiveness of both mirroring and empathy training in a personal-selling setting. Previous writings have presented research relating to nonselling functions. Others have discussed the value of mirroring and empathy in narrative that was not supported by data. The findings of this study suggest that both of these topics of coverage have merit when acting as a supplement to more conventional training content. They reveal that sales managers may be more successful in training members of the sales force if mirroring and empathy training is employed. The investigation supplies support for the proposition that this form of instruction can be useful in both academic and practical applications.     

Effects of ethical sales behaviour,expertise, corporate reputation,and performance on relationship quality and loyalty

This analysis examines the influence of ethical sales behaviour, salesperson expertise, service performance, corporate reputation, and corporate performance on relationship quality and its consequences from multi-level perspectives in order to identify the nature of mix relationships at different levels. A survey with 505 qualified observations from financial institutions' customers in Taiwan was conducted. A structural equation modelling approach was used. Ethical sales behaviour, salesperson expertise, service performance, corporate reputation, and corporate performance, that is, the antecedents of relationship quality, have significant effects on relationship quality. Relationships exist between salespeople and customers, but customers also establish relationship with the retailers themselves. Satisfactory relationship quality has positive effects on commitment and loyalty. Implications for research and practice are discussed.     

Increasing the Organizational Influence of Corporate Consumer Affairs Departments

Empirical research suggests that most corporate consumer affairs departments are not a part of the decision-making structure of their respective firms. The typical consumer affairs department appears to have little influence in management decisions that affect consumer satisfaction and welfare. As a result, it is of limited value for the consumer. A reason for the isolation of consumer affairs from corporate decision making may be that the department's contribution to the firm's welfare is not well understood. By showing a significant contribution to company sales, the consumer affairs department would be in a position to gain influence in the profit-seeking organization. The article identifies the relationship between sales and complaint management within a marketing framework and develops objectives for complaint management that maximize the consumer affairs department's contribution to sales thereby enhancing the power base of the department within the business organization.     

All pain,no gain? Why adopting sales force automation tools is insufficient for performance improvement

The dawning of the 21^st century brought a wave of research into the phenomenon of sales force automation (SFA)—technology tools aimed at enabling sales organizations to better practice customer relationship management. While the academic literature has offered great insight into how an organization can increase the likelihood that its sales force will adopt a new technology system, a great majority of research stops there. This is unfortunate in that companies mistakenly infer that use of an SFA system is the major hurdle and that simply motivating SFA use will be the key to unlocking improved performance. However, this is often not the case; many organizations are able to get their sales force to use an SFA system but do not see improvements in performance. As such, after briefly providing an overview of the factors affecting SFA use, this research provides insight into why use alone may not contribute to long-term improvements in a firm's sales performance. Key empirical findings and theoretical arguments from the extant literature are considered and a list of best practices is offered here to help managers bridge the gap between SFA use and improved sales effectiveness and efficiency.     

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.     

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.     

Customer Relationship Management (CRM)'s Impact on B to B Sales Professionals' Collaboration and Sales Performance

Purpose: Sales literature has traditionally considered technology adoption from acceptance and diffusion perspectives. This article examines the impact of customer relationship management (CRM) technology on business-to-business (B2B) sales professionals' ability to collaborate with internal stakeholders and also assesses the relationship between CRM utilization and sales performance. The study moves from assuming that CRM utilization positively impacts salesperson effectiveness and performance to assessing this outcome from the perspective of the salesperson.

Methodology: A survey that was comprised of four scales was sent to 115 B2B sales professionals and usable surveys were received from 70 respondents. The data were analyzed using partial least squares regression to test the hypothesized paths. Partial least squares regression has been shown to work for small sample sizes.

Findings: There is empirical evidence that CRM adoption and utilization positively impacts sales performance, sales effectiveness, and collaboration. As a partial mediator, collaboration positively influenced CRM utilization's effect on sales performance. However, collaboration did not positively influence sales process effectiveness. Explanations of the findings are offered.

Managerial Implications: Sales managers can use CRM technology to make their sales team more effective and efficient. Second, increased collaboration across the firm positively mediates sales performance. Lastly, to increase collaboration, sales managers should stress that CRM leads to higher performance for both the sales team and the entire firm.     

Investigating a three-way interaction of manufacturer control,retail control and dependence on salesforce performance. Does the role of frontline employees matters ?

Dependence and retailer control on manufacturer's salesforce imply several challenges in retail channels. This research addresses how they affect the relationship between manufacturer control and salesforce performance due to the high level of salesforce investment. We conduct a moderated-moderation analysis.We investigate the moderating roles of retailer control and dependence on the relationship between manufacturer control and salesforce performance. To take into account the importance of the store frontline employee, we next studied the influence of his perception of the salesforce on the sales control systems in retailing. First, our results show that salesforce performance is influenced directly by manufacturer process control and, retail control and dependence moderate this relationship in two-way and three-way interactions. The salesforce subject to process control by manufacturer improves his performance under strong retailer outcome control while the manufacturer is in a low relative dependence. Second, employee perception of the salespeople mediates the link between manufacturer process and retailer outcome controls. We test our model in two studies and theoretically integrate retailer control, dependence, and employee perception of the salesforce, in the sales control literature. In the end, we provide practical implications to further improve salesforce performance and employee perception of the salespeople and future research suggestions.     

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.     

Consumer perceptions of monetary and non-monetary introductory promotions for new products

Abstract

Little research has examined how consumers respond to sales promotions in new product categories. This article fills this gap by integrating research on reference prices with literature on sales promotions for new product categories. Existing research suggests that consumers respond more favourably to non-monetary promotions (e.g. extra free promotions) than monetary promotions (e.g. price discounts) because non-monetary promotions are framed as segregated gains rather than reduced losses. However, both kinds of promotions are widely used in practice, suggesting the importance of other contributory factors. With a consumer experiment on a national panel of consumers, this research demonstrates that extra free product promotions are most preferred for existing products, and introductory low-price promotions are preferred for innovative products. The moderating effect of a product's innovativeness is explained via a new relationship in the marketing literature, whereby perceived risk mediates the relationship between perceived innovativeness and a consumer's tendency to stockpile.     

The Effects of Standardization and Trust on Franchisee's Performance and Satisfaction: A Study on Franchise Systems in the Growth Stage

Franchise systems aim to capitalize on both economies of scale and the benefits derived from localized operations. Although franchisees can be considered small businesses with some independence and local knowledge, compliance with system standardization may be critical to achieving scale benefits, as well as realizing and then maintaining the desired image during the growth stage of the franchise life cycle. However, standardization requirements from the franchisor demand that franchisees make specific investments in the system, which make franchisees more vulnerable to the franchisor. Therefore, whether a franchisee can trust the franchisor becomes an important factor that facilitates the relationship between standardization requirements and franchisees' overall sales and service performance in the market. This research focuses on franchisees in a growing franchise system and examines how the standardization requirements, trust in the franchisor, and the interaction term affect the sales and service performance of a franchisee and ultimately the franchisee's satisfaction. The findings support the hypotheses that, first, the standardization requirements positively affect both sales and service performance. Second, trust not only has main effects on satisfaction and performance constructs but also moderates positively the relationships between standardization requirements and sales/service performance.     

Is it better for salespeople to have the highest customer orientation or a strong fit with their group's customer orientation? Findings from automobile dealerships

The purpose of this study is to examine how retail salesperson-group fit on customer orientation impacts sales performance. Customer orientation fit will be compared against the amount of customer orientation to answer the question of whether it is better to have higher customer orientation or consistent customer orientation. This study shows that fit with the group's customer orientation is more important than having a high customer orientation; individuals who deviate from the group's customer orientation have lower performance than individuals who fit their group's customer orientation. Although previous research finds that group-level performance is stronger in groups that have consistently high customer orientation, we find that individual sales performance depends on fit with other group members, regardless of the orientation of the group.     

Performing Under Pressure: Winning Customers Through Improvisation in Team Selling

The sales presentation is one of the most challenging and dynamic aspect of the sales process. Often-times, the presentation is composed of teams. The purpose of this study is to examine how improvisation manifests itself in the context of the sales team presentation. Utilizing the theoretical foundations of team dynamics and relationships, unplanned behavior, and emotional intelligence, a model of sales team improvisation is developed. A two-phase research design was employed via qualitative in-depth interviews from buyers and sellers followed by a quantitative survey of experienced sales team professionals. Our results find that improvisation impacts the relationship between emotional intelligence and team presentation performance outcomes. Although team selling is common in practice, a dearth of research exists in the sales literature. This study contributes to the growing body of knowledge on team dynamics and emotion in selling. Additionally, this study is one of the first to specifically investigate improvisation in the high pressure context of sales team presentations.     

Fostering creative selling through ethics. An emotion-based approach

Research on salesperson creativity remains as one of the most under-researched topics in the sales literature despite the evidence that encouraging creativity in the sales domain is a source of competitive advantage. This paper aims to fill this research gap by exploring the influence of perceived ethical climate on salesperson creative performance, paying special attention to the role that emotions play in this process. Data provided by 176 supervisor–salesperson dyads confirm that the trust/responsibility dimension of an ethical climate is positively related to salesperson creative selling by increasing salespeople's organizational pride. Similarly, the perception of unethical selling practices negatively affects salesperson organizational pride, reducing the expression of creative behaviors. Moreover, the negative effect of unethical selling practices on creative performance is stronger (more negative) when salespeople's identification with an organization increases. Managerial implications and future research directions are also addressed.     

How management control and job-related characteristics influence the performance of export sales managers

Despite the plethora of studies examining the influence of behavior-based sales management control on salesperson characteristics and performance, limited empirical evidence exists with respect to its relevance and importance in an export sales context. This study expands the existing literature by investigating the influence of behavior-based control and job-related characteristics on the performance of export sales managers. The article offers a conceptual model and an empirical test using data from 210 UK exporters. The findings support the positive influence of behavior-based control on certain export sales managers' characteristics and behavioral performance. The results also indicate that: specific export sales managers' characteristics enhance behavioral performance; behavioral performance is positively related to outcome performance; psychic distance moderates the relationship between behavior-based control and behavioral performance. The article concludes with a discussion of implications for export executives and suggestions for future research in the field.