The paradox of diminishing returns: Measurement and metrics for valuation of B2C sales professionals

Abstract

The realization of channel multiplicity is increasingly present in retail exchanges. Retailers understand that consumers may seek information in one channel and complete their purchases in another channel. Researchers have labeled this retailing concept as “showrooming.” Showrooming suggests that retail salespeople may provide information, services, and suggestions that generate retail sales revenues at another time in another place. While they likely mediate exchange value, retail salespersons’ contributions to building sales revenues and customer relationships may be difficult to measure. The degree of value engendered in the retail sales role set is associated with product and transaction complexity. As such, retail sales functions may range from highly transactional (i.e., facilitating a transaction) to highly relational (i.e., building retail patronage). This article proffers a taxonomy of retail salespeople based on sales role sets: Companions, Consultants, Clerks, and Closers. Managerial recommendations are provided for measuring retail salesperson performance in an omni-channel marketplace.     

The mall as bazaar: How kiosks influence consumer shopping behaviour

Abstract

The addition of kiosks (e.g. pushcarts, stalls, etc.) to malls has changed the mall environment. However, no research to our knowledge has been conducted to determine if that change has been received positively or negatively by shoppers. Our study investigates how kiosks and kiosk salespeople affect consumers' emotional responses and shopping behaviours towards the mall. Using a between-subjects design, we found that the very presence of kiosks negatively affects shoppers' perceptions of the mall environment. Whether a kiosk salesperson was aggressive or passive had virtually the same effect upon shoppers. Similarly, passive kiosk salespeople and the absence of kiosks resulted in relatively the same level of arousal on shoppers, while aggressive salespeople caused a higher level of arousal than either of the other two conditions. This contributes to the extant literature on retail atmospherics and perceptions of retail salesperson behaviours.     

Work Ethic,Locus of Control and Salesforce Task Performance

Abstract

This study explores the relationship between work ethic, locus of control and salesforce task performance. Using data from Uganda retail firms, this study finds that work ethic was a significant positive predictor of salesforce task performance. Further, there was a significant relationship between the different behavioural families of work-related activity work withdrawal behaviours, organizational retaliation behaviours and salesforce task performance. Results from regression analysis indicate that organizational retaliation behaviours and work withdrawal behaviours are important factors for explaining declining performance of salespeople in Uganda retail firms. Managers aiming to improve salesforce task performance should recruit individuals with a strong work ethic. Additionally, retail managers need to reduce work withdrawal and organizational retaliation behaviours so as to increase salesforce task performance.     

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.     

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.     

Salesperson implementation of sales strategy and its impact on sales performance

ABSTRACT

It has been observed in the academic and practitioner literature, a disconnect between the activities of salespeople and the sales strategy espoused by sales organizations. This study examines organizational and individual factors that can influence salespersons’ willingness and ability to implement sales strategy. This paper also seeks to examine the performance implications of sales strategy implementation by salespeople. Data were collected from a sample of 190 business-to-business salespeople in different industries. The study’s hypotheses were tested using partial least squares (PLS). The results of the study show that the different types of sales force control (behavior control and outcome control) has contrasting effects on salesperson market and technical knowledge and salesperson implementation of sales strategy. The results also demonstrate that when salespeople implement sales strategy as part of their sales process, it has a positive effect on their sales performance.     

New product adoption by pharmacists

The objective of this paper is to report a study into the new product buying behaviour of retail pharmacists in Britain and their ways of handling product and marketing information. The research was of an exploratory and qualitative nature, involving in‐depth personal interviews with a relatively small sample of 37 retail pharmacists within the Greater Manchester and Mersey area.

The results show that retail pharmacists in general are indifferent to and reluctant to accept new pharmaceutical products. Retail pharmacists normally are too busy to attend any professional meetings but those who do attend meetings regularly seem to be more innovative, which indicates the existence of opinion leadership in the pharmaceutical community.

With respect to the sources of information, commercial sources are useful for creating awareness, but personal channels are more influential in the later stages of the decision‐making process. Finally, the results indicate that lack of information and poor communications amongst retail pharmacists, physicians and manufacturers are possibly a major reason for new product failure. Using these findings the authors highlight important lessons which may apply to a wide range of product marketing. In particular the risks/opportunities of new product development and marketing are discussed.     

Slotting Allowances in China: Perspectives of a Large Manufacturer Versus a Large Retailer in the China Grocery Market

ABSTRACT

Slotting allowances and contractual marketing agreements pervade the retail environment in the United States. They represent a profit center for large retailers who exercise market power and represent a cost center for large manufacturers. Many manufacturers have alleged that they are “held captive” to procure prime retail space. Despite the influx of retailers and manufacturers based in the United States, the deployment of slotting allowances in China is less prevalent but does pervade the grocery sector. The purpose of this study is therefore to explore the attitudes of large Western manufacturers and retailers toward the issue of slotting allowances in the China grocery market through a qualitative study. In-depth interviews were conducted with key decision-makers from Coca-Cola (manufacturer) and Carrefour (retail hypermarket) to critically explore their attitudes toward slotting allowances. The interviews reveal principal differences grounded in cultural norms.     

Antecedents of adaptive selling among retail salespeople: A multilevel analysis

The literature on adaptive selling behavior has grown rapidly over the years, with heavier emphasis placed on industrial/professional salespeople and less attention given to retail salespeople. This study contributes to addressing this imbalance by examining the effects of two salesperson factors (selling skills and affective commitment) and two company-level variables (empowerment and behavior-based control) on the adaptive selling behavior of retail salespeople. Using data obtained from a two staged sampling procedure (105 companies and 419 salespeople), we employ a multilevel analytical procedure to model the effects of the salesperson and organizational factors on adaptive selling behavior of retail salespeople. The results indicate that selling skills and affective commitment directly influence adaptive selling while empowerment and behavior based control only indirectly influence adaptive selling behavior. Based on the findings of this study, implications for managing retail salespeople as well as limitations and suggestions for future research are presented.     

The state,small shops and hypermarkets: A public policy for retail,France, 1945–1973

Abstract

This article examines contemporary French retail history, studying both transformations in retail structures and evolutions in government retail policies from 1945 to 1973. It notably questions the existence of a defined public policy for the retail sector. Based on extensive archival research, it is designed to offer an overview of the topic in order to familiarise international scholars with French retail history, while stimulating discussion and providing case material to enable comparisons with other national cases.     

Sales management: Learning and innovation in Japan

Abstract

The purpose of this study was to examine ways to promote learning, based on four empirical studies of salespeople and sales departments in Japan. First, analyses of survey data of 192 real estate salespeople indicated that customer- and goal achievement-oriented sales beliefs enhanced experiential learning at work. Second, analyses of data of 193 sales departments indicated that customer orientation in sales departments promotes innovation by facilitating task conflict and preventing process conflict. Third, analyses of survey research of 199 sales departments indicated that behavior-based and knowledge-based management control systems are effective at promoting learning and innovation. Finally, a case study of Nippon Boehringer Ingelheim (NBI) revealed several ways to facilitate learning using a behavior-based sales management control system. Theoretical implications for sales management systems were examined.     

Retail Marketing Channel Franchise Failure

Abstract

The retail franchising channel is significant and growing rapidly in the U.S., U.K. and other countries. This paper presents a new retail strategic management perspective and provides new, more reliable U.S. longitudinal retail franchise government furnished data, covering over 800 franchise systems and over 250,000 franchise units.

A strategic management failure perspective and more accurate retail franchisee channel failure data facilitate understanding and mitigating failure. Retail franchisee channel failure is an important topic that merits further research and franchise system management attention.     

The influence of task characteristics and job-related characteristics on retail salesperson selling orientation

This study examines the influence of task characteristics and job-related characteristics on the level of customer orientation exhibited by retail salespeople. The task characteristics examined are task variety, task autonomy, task identity and feedback. The job-related characteristics included in the study are job satisfaction, work motivation, organizational commitment, job involvement, role conflict, and supervisor–employee relationship. A survey using a self-administered close-ended questionnaire was conducted on retail salespeople from five major retailers in Singapore. Pearson correlation analysis revealed that the above factors, with the exception of role conflict, have significant influence on the customer orientation of retail salespeople. The six most important predictors of the customer orientation of retail salespeople identified by multiple regression analysis were task identity, organizational commitment, autonomy, education level, job satisfaction, and supervisor–employee relationship.     

Boundary Spanners' Satisfaction with Organizational Support Services

SUMMARY

Internal services (i.e., support services) are an important form of organizational support for external boundary spanners (e.g., salespeople, customer service representatives). Internal services such as information systems, market research, training, accounting, and facilities support are intended to allow boundary spanners to better serve the firm's customer. Little research, however, has addressed factors that influence a boundary spanner's satisfaction with such services. The research presented here offers insight into how internal communication by both managers and service providers impacts a boundary spanner's satisfaction with support services. Results indicate that service provider and manager communications are largely complementary and that satisfaction with service outcomes, rather than service quality, appears to have an enduring impact upon a boundary spanner's overall job satisfaction. Implications for future research are addressed.     

Foreign Product Purchase Behavior in Transition Economies: An Empirical Analysis of Product Information Sources Among Georgian Consumers

SUMMARY

This article analyzes the product information sources that consumers in transition economies, specifically in Georgia, utilize when they consider purchasing foreign products. We surveyed 313 consumers in Georgia regarding 9 sources of product information (experiential knowledge, word of mouth, in-store promotions, television, packaging information, radio, newspapers and magazines, salespeople, and billboards). The findings indicated that personal experience and word of mouth are the 2 most frequently used and highly valued sources of information while salespeople and radio are the 2 least frequently used and least influential sources of information. Education, age, and ethnocentrism exhibited significant impact on the experience source.     

A Comparison of Buyers and Nonbuyers of Extended Service Contracts

ABSTRACT

Only a few empirical research studies about extended service contracts have appeared in the services marketing literature. This study used Chi Square analysis as a methodology to distinguish between buyers and non-buyers of extended service contracts. The findings suggest that while buyers and non-buyers were very similar demographically and psychographically, there were considerable differences in motivation for purchasing or not buying. Of the ten motivation variables, eight were significant at or beyond p < 0.05. Moreover, some ethical implications for professional salespeople marketing these service contracts were discussed.     

Impression Management Tactics and Performance Ratings: A Moderated-Mediation Framework

Purpose: The objective of this study is to contribute to the sales management literature by analyzing whether self-monitoring dimensions (the ability to adjust the presentation of one’s self and the sensitivity to the expressive behaviors of others) play a moderating role in the use of impression management—supervisor liking—performance rating nomological network.

Methodology/approach: Empirical analysis is based on dyadic data from 122 industrial salespeople and their sales managers in 9 different industries. Structural equation modelling was used to analyze the psychometric proprieties of the measurement scales, and conditional process analysis was used to test the proposed hypotheses.

Research implications: The results obtained indicate that the use of supervisor-focused impression management tactics is an indirect antecedent of a salesperson’s performance rating through sales manager liking, but not the self-focused tactics. Results also show that a self-monitoring dimension i.e., the ability to adjust the presentation of one’s self, moderates the “impression management—supervisor liking—performance rating” chain. These results provide an increased understanding of the processes involved in sales managers—salespeople’s interactions.

Practical implications: The main implication for salespeople is that the use of impression management tactics to influence performance ratings only is effective when they use supervisor-focused tactics because attempts to influence via self-focused tactics will not have any effect. The most important implication for sales managers’ is that not all impression management tactics are successfully executed and that the identification of combinations of impression management tactics and the levels of salespeople’s self-monitoring can positively influence performance appraisals by generating evaluative biases. Given that evaluative biases can produce inequitable behaviors by sales managers in the task assignments and support provided to the salespeople, it is important that sales managers are aware of when they can occur (i.e., when salespeople with a moderate ability to adjust their self-presentation use supervisor-focused tactics).

Originality/value/contribution of the article: This article contributes to the existing knowledge by two important means. First, this study proposes a model and presents an empirical test of constructs that mediate (i.e., supervisor liking) and moderate (i.e., self-monitoring dimensions) the “use of impression management tactics—sales manager liking—performance appraisal” relation. This model responds to calls for studies that analyze how impression management tactics are related to performance appraisal and when the relation between the use of these tactics and performance rating occurs. Two, this study uses data from both salespeople and their sales managers, which minimizes any risk of common method variance bias.     

A Hierarchical Model of Values,Leadership, Job Satisfaction and Commitment

Abstract

Using a structural equation modeling technique, we empirically tested a hypothetical hierarchical model where personal values leadership styles job satisfaction organizational commitment. Survey data (N = 205) were collected from retail managers of national retail chain store companies. Our exploratory study found that personal values influenced retail managers' leadership styles, which in turn influenced their intrinsic and extrinsic job satisfaction. Job satisfaction ultimately influenced organizational commitment. Theoretical and managerial implications for human resources management are discussed.     

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.     

Bouncing back from a sudden-onset extreme event: exploring retail enterprises’ resilience capacity

ABSTRACT

A feature of recent decades has been the sudden and unexpected occurrence of catastrophic events seriously affecting people and territories. From an economic viewpoint, this has led scholars to pay increasing attention to factors and determinants taking enterprises face-to-face with extreme and catastrophic events, through the resilience lens. In this context, this study aims to contribute to the literature on resilience to natural disasters which is currently still limited in the business and management fields, both theoretically and empirically. This is particularly true as regards retailing, despite the key role played by retail in the aftermath and recovery periods following on from sudden-onset extreme events such as earthquakes.

The 2012 Emilia earthquake is a case in point with which to explore small retail enterprises’ resilience to sudden-onset disasters. Specifically, our empirical research consisted of administering a structured questionnaire to a sample of small retail enterprises which experienced an earthquake. The unit of analysis adopted was the retail enterprise. Data was processed applying Covariance-Based Structural Equation Modeling (CB-SEM). The structural model aims to verify the impact of sales capabilities, market orientation and networking capabilities on the resilience capacity of retail enterprises affected by an extreme event, controlling for certain financial indicators such as suppliers’ payment timeframes and the use of debt capital, as well as respondent age and gender. The findings show that all the antecedents analysed exert a significant and positive effect on small retail enterprises’ resilience capacity and ability to bounce back from natural disasters. Moreover, suppliers’ payment timeframes showed a direct relationship with retail enterprises’ resilience capacity, with lower use of debt capital equalling higher retail business resilience. Age and gender do not exert any significant effect. Scientific, managerial and public policy implications are derived.

Abbreviation: SEM