SOCO's impact on individual sales performance: The integration of selling skills as a missing link

Conventional wisdom suggests that a customer orientation is a vital cornerstone upon which the success of salespeople is predicated in terms of serving their customers and prospects. However, at a pragmatic level, not all salespeople practice a customer-oriented philosophy in their day-to-day selling. In fact, decades of sales research provide largely inconclusive results with respect to individual salespersons' customer orientation and performance outcomes. We argue that for customer orientation to be a predictor of sales performance, specific selling skills must be present. Furthermore, we empirically demonstrate that without these requisite selling skills, salespeople are better off utilizing a sales orientation approach, as opposed to a customer orientation approach. More provocatively, this research shows that a “missing link” in the long standing body of research on the SOCO (sales orientation/customer orientation) perspective is that specific selling skills can impact sales performance directly as well as moderate the impact that both a “sales orientation” and a “customer orientation” ultimately have on sales performance.     

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.     

Salesperson influence tactics and the buying agent purchase decision: Mediating role of buying agent trust of the salesperson and moderating role of buying agent regulatory orientation focus

Little is known about antecedents of salesperson influence tactic usage or how and which influence tactics impact buying agent purchase decisions. To aid such understanding, we draw from the relationship selling literature, and both regulatory fit and focus theories, to propose a novel theoretical framework and test hypotheses. The study's findings, derived by applying the critical incidence methodology to a heterogeneous dataset of buying agents (n > 200) representing small and medium enterprises and acting as key informants on salespeople, show that: (i) salesperson influence tactics heterogeneously explain the buying agent's trust of the salesperson, (ii) trust of the salesperson serves as a mechanism through which influence tactics impact the buying agent's purchase decision, (iii) buying agent's regulatory orientation moderates the relationship between salesperson influence tactics and buying agent's trust of the salesperson, and (iv) salesperson regulatory orientation predicts a salesperson's use of particular influence tactics. The article concludes with a discussion of the practical and theoretical implications of the research.     

Customer business development: identifying and responding to buyer-implied information preferences

Customer business development (CBD) transforms the selling function from ‘pushing products’ towards creating value by developing the business customer's business. For key accounts, CBD salespeople align their customer relationship management tasks of planning, selling, and implementing solutions to best integrate customer needs with the seller's strategic account management goals. A vital process mechanism involves the salesperson's observations of their business buyer's tendencies to favor solutions steeped in information characterized here as either market-centered or cost-centered. Findings show that CBD salespeople use signals from buyer commitments to identify and adapt selling behaviors (relationship-forging tasks) to achieve relational and financial objectives. To align with market-centered preferences, CBD salespeople share information about the buyer's market and propose plans for market development. In contrast, to align with cost-centered preferences, CBD salespeople focus on coordinating interfirm activities. While cost-centered adaptations yield expected positive financial returns, interestingly, market-centered adaptations negatively impact on the seller's financial returns.     

Interpersonal influence strategies in complex B2B sales and the socio-cognitive construction of relationship value

The investigation of how exactly salespeople create value at the individual level of interaction is still incomplete. While there have been lively debates on value creation and co-creation processes at the organizational level in the business marketing literature, researchers have paid much less attention to the fact that such processes almost always start at the interpersonal level of buyer-seller interactions. Through utilizing a symbolic interactionist perspective and the ethnographic research method of shadowing, the present study moves research insights into value creation in sales forward by depicting the detailed activities and tactics that influence customers’ value perceptions during the sales encounter. We complement the sales influence literature with three additional tactics: disrupt, reassure and dedicate. We also expand the framework of value creation in sales interactions by identifying three value strategies that change, strengthen or expand customer value perceptions through different socio-cognitive mechanisms.     

It ain't over 'til it's over: Evaluating reacquisition opportunities in business-to-business markets

Using a qualitative critical incident research technique, this paper examines how sales firms evaluate defected customers in order to determine their worthiness for reacquisition. Findings from interviews with fifty professional salespeople suggest that, when sales firms assess reacquisition opportunities, these opportunities are evaluated based on the likelihood of reacquisition and the value of the customer (i.e., ease of reacquisition and value of the customer). Salespeople report that the barriers to reacquisition, leveraging remaining customer relationship and investigating their own value-adding capabilities are critical in determining the ease of reacquisition. In addition, salespeople report that account size, profitability, market influence and cross-selling potential are fundamental in determining the value of a customer. Furthermore, the importance of ease and value in reacquisition assessments varies with (1) the reason for the customer defection, (2) the formalization of a firm's reacquisition process, and (3) market opportunities. Managerial implications and future research directions are discussed.     

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.     

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.     

The role of customer entertainment in B2B sales strategy: Comparative insights from professional buyers and salespeople

Customer entertainment is any activity considered to provide entertainment, amusement, or recreation. Business-to-business firms, as part of their sales strategy, have entertained customers for decades in hopes of influencing purchasing and building long-term relationships. Using social exchange theory and the element of reciprocity, this study examines how customer entertainment influences buyers' perceptions of gratitude, indebtedness, and purchase intention within their relationship with the B2B seller. In order to assess the importance and strategic role of customer entertainment in building and strengthening buyer-seller relationships, this study investigates customer entertainment throughout the sequential relationship stages of exploration, expansion, and commitment. A multimethod research design was developed comprised of 2 qualitative studies, 3 pretests, and a conclusive experimental field study that compared buyer attitudes with salespeople's perceptions of buyer attitudes. The final study contrasts results between 248 buyers and 245 salespeople and consists of a 3 × 3 experimental field study, with the levels of customer entertainment events and stage of relationship as manipulating variables. The analysis reveals that salespeople and buyers view of reciprocity differs, with salespeople being more socially oriented and focused on gratitude while buyers are more economically oriented and more attuned to indebtedness.     

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.     

How industrial salespeople gain customer trust

This study investigated how industrial salespeople gain the trust of their customers. Results show that trust increases as the customer gains the impression that the salesperson is dependable, honest, competent, customer oriented, and likeable. Based on the results, a general model of trust building is suggested.     

The use of asset specific investments to increase customer dependence: A study of OEM suppliers

Making asset specific investments without sufficient economic safeguards is usually seen as a poor managerial practice according to transaction cost economics. However, in practice, many suppliers still invest in asset specificity to satisfy their major customers' requirements, who do not make sufficient investment commitments. The objective of this study is to explore how suppliers that make asset-specific investments maintain long-term relationships with their customers and even make their customers reliant on them. Empirical analysis of data from a sample of Taiwanese original equipment manufacturer (OEM) suppliers shows a significant positive indirect effect of asset specificity on the dependence of customers on suppliers, mediated through joint learning capacity. In addition, a positive link between a proactive market orientation and the degree of customer dependence on the supplier was found. This investigation finds evidence that joint learning capacity and proactive market orientation play critical roles in linking asset specificity to customer dependence.     

Managing salespeople strategically when promoting new products – incorporating market orientation into a sales management control framework

Salespeople play a pivotal role in promoting new products. Therefore, managers need to know what control mechanism (i.e., output-based control, behavior-based control, or knowledge-based control) can improve their salespeople’s new product sales performance. Furthermore, managers may be able to assist salespeople in performing better by having a strong market orientation. The literature has been inconsistent regarding the effects of sales management control mechanisms and has not yet incorporated market orientation into a sales management control framework. The current study surveyed 315 Taiwanese salespeople from publicly traded electronics companies with the aim of contributing to the sales management literature. The results show that sales management controls can directly affect salespeople’s innovativeness, which, in turn, affects new product sales performance. However, sales management controls cannot affect performance directly. Furthermore, market orientation can positively moderate the relationship between salespeople’s innovativeness and new product sales performance.     

Sales force technology usage—reasons, barriers, and support: An exploratory investigation

Increasingly, salespeople are being asked to adopt and use a variety of technologies to increase their selling productivity and efficiency, including sales force automation and customer relationship management technologies. However, little research has investigated what happens once sales force automation (SFA) technology is adopted. This paper explores the reasons why salespeople use SFA technologies, the perceived barriers to SFA usage and how management can increase the usage of SFA technology. First, a qualitative study was performed to gain insight about salespeople's automation technology usage and the reasons why some salespeople fully use or do not utilize technology. After the initial study, 130 salespeople were surveyed. More productivity/efficiency was the main reason why salespeople use technology, the lack of management and technical support proved to be the main barrier to usage, and training proved most effective in increasing usage of SFA technology. Sales managers are provided with implications of the findings.     

基于服务质量模型的方案营销策略研究

解决方案营销是获取营销模式差异化优势的重要利器,其本质在于实现由“竞争导向”向“顾客导向”、由“交易营销”向“关系营销”的两个关键性转变。在分析传统营销模式和解决方案营销模式本质区别的基础上,借助Parasuraman的服务质量差距模型,提出解决方案营销的策略：全面了解顾客期望;选择正确的服务标准和规范;按标准提供和执行服务;履行承诺,制造惊喜。     

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.     

“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.     

From Experience: Why Bad Things Happen to Good New Products

The rollout of a new product can be an exhilarating time for everyone involved in the development and launch effort. Just as a construction crew may meet at a local gathering place to hail the “topping-off” of a new home or office building, the development team—or possibly the entire company—may gather to celebrate a new product’s release. Launch meetings generate enthusiasm among the salespeople, and favorable reviews lead to an influx of inquiries from prospective customers. Despite this initial wave of enthusiasm, however, customer desire for the innovative new product may soon wane. Does this mean that everyone was wrong about the new product’s potential?Citing three examples of launches that followed this pattern, Neil Rackham addresses a key question for product development professionals: “Why should promising products from highly respected companies fail despite clear evidence of market need, strong marketing support, and real enthusiasm and energy from salespeople?” Based on his own experience in these three cases, as well as research investigations into elements of these and other launches, he rejects the conventional wisdom that the problem stems from resistance to change on the part of either the customers or the salespeople.He suggests that the problem rests with the way in which highly innovative products are launched to the salesforce, which in turn influences the manner in which the products are sold. He notes that the launch of an innovative product typically focuses on all the great new features the product offers. However, the new features that make the product so exciting may draw the salesperson’s attention away from the most important issue in the selling process: the customer’s needs. In other words, he suggests that the launch and the selling of innovative products tend to be product-centered instead of customer-centered, causing customer interest to fade as the selling process progresses.Rather than fill the salesforce with details about a product’s “bells and whistles,” he suggests that the launch should focus on describing the product in terms of the problems it solves for the customer. Similarly, rather than bombard customers with details about product features, he suggests that the salesperson should focus on asking questions. In this customer-centered approach, the product’s features are considered only in terms of the manner in which they meet the customer’s needs.     

The Interplay of Customer and Product Innovation Dynamics: An Exploratory Study

The challenges of successfully developing radical or really new products have received considerable attention from a variety of marketing, strategic, and organizational perspectives. Previous research has stressed the importance of a market‐driven customer orientation, the resolution of market and technological uncertainty, and organizational processes such as cross‐functional teams and organizational learning. However, several fundamental issues have not been addressed. From a customer's perspective, a more innovative product tends to have uncertain benefits and requires customers to learn new behaviors. Customer preferences can, therefore, change as product experience and learning increase. From a firm's perspective, it is unclear how to be customer‐oriented under such dynamic preferences, and product strategies using evolving technologies will tend to interact with how customers learn about an innovation. This research focuses on identifying unresolved issues about these customer and product innovation dynamics. A conceptual framework and series of propositions are presented that relate both changing technology and customer learning to a firm's strategic decisions in developing and launching really new products. The framework is based on in‐depth interviews with high‐tech product managers across several sectors, focusing on the business‐to‐business context. The propositions resulting from the framework highlight the need to consider relevant customer dynamics as integral to a firm's product innovation process. Successful innovation strategies and future research challenges are discussed, and applications to better understanding customer needs and theories of disruptive innovation are examined. Several key insights for innovation success hinge on a broad, downstream orientation to customer needs and product innovation dynamics. To be effective innovators, firms must know their customers' customers and competitors as well as or better than their immediate customers do. Market research must extend downstream for a comprehensive understanding of customer needs dynamics. In the context of disruptive innovation, new dimensions of customer needs may become more valuable based on perceived downstream customer trends. Firms may also innovate on secondary needs because mainstream customers do not always give firms the design freedom to radically innovate on primary features. Understanding customer commitments and how they develop under evolving needs can help firms focus resources on innovative efforts more likely to be accepted by customers.