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.     

Empowering salespeople: Personal,managerial, and organizational perspectives

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

Customer‐oriented selling: Exploring the roles of emotional intelligence and organizational commitment

Professional salespeople are often placed in situations where role conflict and ambiguity are prevalent. They are generally expected to sell a firm's products and services to generate immediate profits, while simultaneously building customer satisfaction and promoting lifetime customers and the long‐term economic viability of the firm. The concept of customer‐oriented selling illustrates the conflict, as salespeople are required to forgo immediate benefits in lieu of long‐term rewards. The purpose of this study was to determine the relationships existing between customer‐oriented selling, emotional intelligence, and organizational commitment. The results indicate that a salesperson's customer orientation level is significantly related to emotional intelligence. Implications of the findings indicate that managers should consider using emotional intelligence as a selection and human‐resource development tool, as improvements in emotional intelligence are correlated with greater levels of customer orientation. © 2004 Wiley Periodicals, Inc.     

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.     

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

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

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

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

Updating the Adaptive Selling Behaviours: Tactics to Keep and Tactics to Discard

While salespeople are coached and trained to use an adaptive approach to selling, sales training tends to be assumptive about the inclusion of specific selling techniques. Part of this assumptive approach is the belief that the old-tried-and true techniques such as the testimonial form of closing are consistent with an adaptive selling approach. Results of this survey of over 200 industrial buyers' points to the flaws in these assumptions and suggests there are techniques which are not part of adaptive selling. Industrial buyers make distinctions between standard selling techniques – and associate a specific set of techniques with highly adaptive salespeople.     

Contribution of sales control in salespeople’s creative selling: Work engagement as a mediator

This study investigated the effects of outcome-based control (OBCS) and behavior-based control (BBCS) on creative selling, by exploring their mediating effects on creative selling through work engagement. We also explored the joint effect of the two sales control systems on work engagement, which can eventually increase creative selling. We collected data from salespeople working at an insurance company in South Korea; 270 of the 303 participants were included in the analysis. Our results revealed that OBCS and BBCS increase creative selling. In addition, work engagement was found to mediate the relationship between OBCS and creative selling but not the relationship between BBCS and creative selling. The joint effect of OBCS and BBCS on work engagement was found to function as a hierarchical combination, meaning that work engagement is enhanced when OBCS is high and BBCS is low. These findings suggest that OBCS and BBCS function through different mechanisms to creative selling when they function separately, and the former acts as a primary control and the latter as a supplement to work engagement when they perform jointly.     

The Myth of the Salesperson: Intended and Unintended Consequences of Product-Specific Sales Incentives

Product-specific sales incentives (PSIs), or "spiffs," have instigated conflict in business and sales for more than fifty years. PSIs are exactly what they sound like: incentives offered by manufacturers to salespeople to encourage them to promote certain products above those of competitors. PSIs have provoked considerable controversy. They are sometimes likened to "bribes," in that their purpose is to motivate salespeople to offer advice that might contradict what they would otherwise recommend. If a salesperson's job is to sell an array of products, how is it equitable for him or her to receive additional compensation for selling certain products above others? In addition, how are we to justify the bias that the presence of PSIs introduces into the selling process. There is concern that this causes negative consequences for stakeholders, including manufacturers, retailers, salespeople, and, of course, customers. How does this affect the competitive process?The research conducted explores the reaction to PSIs by people of different ages. It reveals a correlation between age, education, and reaction to PSIs. The findings correspond with the Josephson Institute of Ethics report, which found that younger adults tend to exhibit higher tolerance for unethical behavior. Examination of PSIs, like other sales incentives, reveals intentional and unintentional consequences to a wide array of stakeholders. The research indicates that there is value inherent in considering both the propriety and manner of implementation of sales incentives, such as PSIs.     

The influence of salesperson skill,motivation, and training on the practice of customer‐oriented selling

Why is customer‐oriented selling not practiced widely? The purpose of this research was to identify the relationships between factors that may be related to the practice of customer‐oriented selling: Salesperson job satisfaction, organizational commitment, and skills. A survey of 109 retail salespeople provided insights into the relationships between these variables. The findings focused on the importance of the relationships existing between salesperson skills, training, organizational commitment, job satisfaction, and salesperson customer orientation. © 2002 Wiley Periodicals, Inc.     

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

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

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

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

Decision making in personal selling: Testing the “K.I.S.S. principle”

The KISS principle (keep it simple, stupid) is often cited as an effective strategy in selling. The premise is that salespeople are more effective when they stick to basics and do not unnecessarily complicate that which is not necessarily complicated. This study tests the KISS principle in the context of salesperson decision making in the prospecting stage of the selling process. Two general research questions are addressed (1) does a simple versus more complex process affect outcomes of decisions made by salespeople, and (2) if so, whom does it affect? The results suggest that process does influence outcome and that lower‐performing salespeople's decisions are most likely to be affected by the decision process used. Higher performers seem to be able to focus on key characteristics of sales prospects regardless of the complexity of the decision task, suggesting that higher performers, at least implicitly, know when to keep it simple. © 1999 John Wiley & Sons, Inc.     

When service fails: The role of the salesperson and the customer

Service failures and consequent recoveries have been identified as a critical determinant of customer retention. Hence, effective service recovery programs warrant further exploration. In particular, with the current emphasis on relationship selling, salespeople should learn how to improvise to serve their customers effectively, including solving problems when service failure occurs. Therefore, alternatives to current common practices in industry should be investigated. The results of the present study suggest that by providing customers a choice of service recovery options, salespeople can augment customers' sense of control and ultimately their satisfaction with the service recovery and the overall service transaction. The investigation also proposed that customer satisfaction would be contingent upon the importance of the service. However, study findings revealed that this was not the case. Implications of the findings are also discussed. © 2006 Wiley Periodicals, Inc.     

Disciplining top‐performing unethical salespeople: Examining the moderating effects of ethical seriousness and consequences

Managers take many factors into account in deciding the level of discipline to administer to subordinates who have engaged in some form of undesirable work behavior. In general, performing other job tasks well, such as being a top sales producer, has been shown to be more likely to bring about an external attribution (attributing the cause of the undesirable behavior to some person or thing other than the performer) and, in turn, more lenient forms of discipline. However, other factors may be taken into account that might alter a manager's diagnosis of, and response to, undesirable employee behavior. This study examines the general tendency of sales managers to treat top sales performers more leniently than poor sales performers when these salespeople engage in unethical selling. Specifically, the study sought to determine if unethical acts of a more serious nature and unethical acts associated with more serious consequential outcomes would offset the general tendency to treat top sales performers more leniently. Findings revealed that top sales performers are still disciplined more leniently than poor sales performers despite engaging in more serious behaviors that produce more serious consequences. Implications for sales managers are presented. © 2006 Wiley Periodicals, Inc.     

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

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

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

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

Drown or Blossom? The Impact of Perceived Chronic Time Pressure on Retail Salespeople's Performance and Customer–Salesperson Relationships

For retail salespeople chronic time pressure, a perpetual perception of being rushed for time, is a prevalent and pervasive phenomenon in their daily sales jobs. Despite this practical relevance, consequences of perceived chronic time pressure on retail salespeople's selling behaviors, such as adaptive selling, and selling performance are not well understood. Thus, the authors investigate the effect of retail salespeople's perceived chronic time pressure in interactions with customers and its impact on retail salespeople's adaptive selling behavior, customers’ purchase outcomes, as well as salespeople's overall objective performance. Analysis of dyadic data from 291 salesperson–customer interactions from a large B2C furniture retailer revealed an inverse U-shaped curve for the relationship between retail salespeople's perceived chronic time pressure and their adaptive selling behavior. The chronic time pressure–selling outcome relationship strongly depends on the contingencies of retail salespeople's goal orientations and perceived organizational support and has implications for retail research and practice.     

Using Trade Incentives to Promote Customer Relationships in a Retail Setting

Suppliers and retailers use a variety of techniques designed to motivate salespeople to engage in specific selling behaviors that will provide results that will assist in achieving either the supplier's or retailer's goals. One method that is commonly applied is the sales incentive. This research examines popular forms of incentives to assess the relationships that exist between the incentives offered and salesperson behaviors. The study also examines the types of incentives commonly used by both suppliers and retailers and salesperson perceptions of these incentives. To accomplish this, 95 salespeople working for a major automotive parts company responded to questions designed to assess their attitudes and behaviors toward incentives. The results provide information which may be valuable to manufacturers, retailers, and academicians as they investigate the use of incentive based compensation programs and sales force behavior.     

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

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