Perceived marketing–sales relationship effectiveness: a matter of justice

There is a compelling need to improve the relationship between managers in marketing and sales departments. This paper argues that one critical way of enhancing individual managers’ perceptions of relationship effectiveness between these departments is to view the issue as a matter of justice and suggests that perceived marketing–sales relationship effectiveness is positively influenced by managers’ perceptions of organizational justice. Furthermore, it proposes that interfunctional communication has the potential to enhance the proposed positive effects of justice and hence needs to be considered and effectively managed when looking at marketing–sales relationship effectiveness. Data drawn from a survey of 203 marketing and sales managers in 38 consumer packaged goods companies are used to empirically test these predictions. The authors find that perceived sales–marketing relationship effectiveness is influenced by perceptions of distributive, procedural and interactional justice. Greater interfunctional communication is found to further enhance the positive effects of distributive and procedural justice on perceived relationship effectiveness, but it does not contribute to the already strong positive effects of interactional justice. Furthermore, results reveal important differences in the effects of justice on perceived relationship effectiveness across the marketing and sales departments.     

The impact of a sales team’s perceived entitativity on customer satisfaction

This research investigates the impact of a sales team’s entitativity—the extent to which a group of individuals is perceived as a unified single entity—on customer satisfaction. Four studies demonstrate that a sales team entitativity cue, either based on appearance (e.g., wearing the same outfit) or based on behavior (e.g., explicit coordination in service), leads to heightened perceptions of service quality, which subsequently enhances customer satisfaction. Further, these two entitativity cues are shown to have interactive effects. Specifically, when both cues indicate high entitativity, customer satisfaction with the sales team exceeds the average evaluation of individual team members. However, if at least one cue suggests low entitativity (e.g., different outfits or no explicit coordination), the positive influence of the entitativity cue is undermined and customer satisfaction with the team’s service is mitigated. Product category is identified as an important moderator of the main effect.     

The effects of customer acquisition and retention orientations on a firm’s radical and incremental innovation performance

The effect of a firm’s strategic focus on acquiring new customers and/or retaining existing customers (customer acquisition and retention orientations) on innovation performance is evaluated. With dyadic primary data collected from 225 strategic business units, the authors demonstrate that a firm’s focus on customer acquisition enhances its radical innovation performance but hinders its incremental innovation; a firm’s strategic orientation toward customer retention has the opposite effects. These effects are mediated by both customer knowledge development and the firm’s resource configuration decisions. In addition, the authors provide insight into the impact of managerial decision trade-offs when implementing customer engagement strategies. The results suggest that the effect of customer acquisition and retention orientations on customer knowledge and investment decisions, and ultimately on innovation performance, is amplified when a firm consistently implements a specific engagement strategy. Implementing a dual strategy by attempting to focus on both acquiring and retaining customers undermines resource configuration decisions, with diverse effects on both radical and incremental innovation.     

Drivers of sales performance: a contemporary meta-analysis. Have salespeople become knowledge brokers?

It has been 25 years since the publication of a comprehensive review of the full spectrum of sales-performance drivers. This study takes stock of the contemporary field and synthesizes empirical evidence from the period 1982–2008. The authors revise the classification scheme for sales performance determinants devised by Walker et al. (1977) and estimate both the predictive validity of its sub-categories and the impact of a range of moderators on determinant-sales performance relationships. Based on multivariate causal model analysis, the results make two major observations: (1) Five sub-categories demonstrate significant relationships with sales performance: selling-related knowledge (β = .28), degree of adaptiveness (β = .27), role ambiguity (β = −.25), cognitive aptitude (β = .23) and work engagement (β = .23). (2) These sub-categories are moderated by measurement method, research context, and sales-type variables. The authors identify managerial implications of the results and offer suggestions for further research, including the conjecture that as the world is moving toward a knowledge-intensive economy, salespeople could be functioning as knowledge-brokers. The results seem to back this supposition and indicate how it might inspire future research in the field of personal selling.     

This ad’s for you: the indirect effect of advertising perceptions on salesperson effort and performance

Considerable research explores advertising’s role in influencing consumer perceptions and behavior. However, advertising’s impact on another key audience—the sales force—has been largely overlooked. Drawing from social identity and expectancy theories, and using survey and objective performance data across multiple wholesalers, the authors demonstrate that a salesperson’s perception of brand advertising has a significant effect on salesperson effort and performance by positively influencing the extent to which the salesperson identifies with the brand and his or her expectancy that such effort will generate results. These effects are moderated by internal communications and brand size. Model results suggest that advertising’s role may extend beyond “pull” to “push” by motivating salespeople to exert more effort on behalf of a brand. As a result, firms should take steps to proactively manage salesperson perceptions of brand advertising while also considering this dual role when assessing advertising effectiveness and efficiency.     

Social influence on salespeople’s adoption of sales technology: a multilevel analysis

The implementation of sales force automation applications (SFA) often fails owing to the lack of adoption by salespeople. Previous studies investigating drivers of salespeople’s SFA adoption have mainly scrutinized predictors on the level of salespeople (within-level analysis). Hence, these studies have mostly neglected the social influence of coworkers’ and superiors’ SFA adoption on salespeople’s SFA adoption. We introduce a new perspective using a multilevel framework of SFA adoption at several hierarchical levels. The findings demonstrate that coworkers’ and superiors’ SFA adoption has a positive effect on subordinates’ SFA adoption which goes beyond the commonly tested determinants. Also, results reveal differences among predictors of the Technology Acceptance Model (within-level effects) examined at three different hierarchical levels.     

The effects of supplier capabilities on industrial customers’ loyalty: the role of dependence

This research examines whether suppliers’ capabilities impact OEM customers’ dependence on the supplier and thereby generate customer loyalty. Using a sample of purchasing managers focusing on a single key component supplier, we examine three supplier capabilities, two dependence dimensions, and three aspects of customer loyalty. Core offering capability increases the customer firm’s benefit-based dependence. Operations capability has a more comprehensive effect, enhancing both benefit-based and cost-based dependence. Benefit-based dependence leads to relational loyalty and, through its effect on relational loyalty, to insensitivity to competitive offerings and future purchase expansion. Cost-based dependence motivates insensitivity to competitive offerings, but does not affect relational loyalty or purchase expansion. The supplier’s communication capability is associated with relational loyalty, but this effect does not flow through the customer firm’s dependence. The divergent pattern of antecedents and effects of benefit-based dependence and cost-based dependence may explain the inconsistent and insignificant research findings in previous research on dependence. Our results suggest that adopting a bi-dimensional model of dependence more fully captures the theoretical domain of dependence, thereby permitting researchers to better examine its role in supply chain, channel, and marketing relationships.     

The trade-off of servicing empowerment on employees’ service performance: examining the underlying motivation and workload mechanisms

Literature on empowerment as an internal marketing practice primarily documents positive effects on employees’ job performance, though increasing evidence suggests conflicting viewpoints. This study adopts an agency theoretical perspective to propose a workload mechanism, according to which the delegation of power from supervisors (principals) to service employees (agents) (i.e., servicing empowerment) is costly to employees and increases their perceived workload, which hampers their performance to serve customers. Using a laboratory experiment and a survey, this research reveals that the perceived workload and extant motivational mechanisms have conflicting effects on employees’ service performance. The former exerts a significant negative impact on tasks that involve conflicting principal-agent interests (e.g., handling customer complaints) but not on tasks with aligned principal-agent interests (e.g., organizational citizenship behaviors). Two control systems, performance appraisal (accurate and infrequent feedback) and principal-agent service goal congruence, mitigate the dysfunctional effect of perceived workload on employees’ service performance.     

The effects of unification: markets,policy, and cyclical convergence in Italy, 1861–1913

This paper uses time-series evidence on construction movements to examine the convergence of regional business cycles in the decades that followed Italy’s unification. The aggregate series point to cyclical convergence, but a sector-level analysis traces this result to the decline in differentiated “regional-policy” shocks. The regional market cycles diverged, as regions specialized in different sectors of production; market-cycle convergence is observed only within the “industrial triangle,” the regions of which also developed different specializations. This suggests that the balance between growing interdependence and growing differentiation is not general, as the current literature presumes, but specialization-specific.     

The effect of cause-related marketing on firm value: a look at Fortune’s most admired all-stars

Companies are increasing their use of cause-related marketing as a means of communicating their commitment to corporate social responsibility while accomplishing their strategic goals. Although prior studies suggest that consumers react positively to cause-related marketing programs, understanding of their impact on financial performance remains limited. To address this gap, the authors employ an event study to examine the effects of cause-related marketing announcements on shareholder value using a sample of firms that appeared on Fortune’s Most Admired All-Star list between 2005 and 2017. Study results show that announcement of these initiatives results in a significant loss of shareholder value. These losses are most pronounced for firms making monetary-only contributions, in comparison to those that make in-kind donations. In addition, the negative effects are mitigated for firms that have stronger reputations, have greater resource slack, and operate in more dynamic industries. Moreover, low-reputation and low-slack firms benefit most from in-kind contributions.

     

The structure of sustainability research in marketing, 1958–2008: a basis for future research opportunities

Recent changes in the business environment have prompted marketing scholars to pay particular attention to sustainability as a topic of inquiry. Despite the progress made in the study of sustainability, there is a paucity of research on the topic in premier marketing journals. To address this issue, we focus on marketing-related journals and assess the intellectual structure of sustainability research in detail. Drawing on social network theory, we perform an extensive co-citation analysis using multidimensional scaling to examine 76,342 citations made in 1,320 sustainability-focused articles from 36 journals over 51 years (1958–2008). This study specifies that the topics of citizenship behavior, stakeholder theory, corporate performance, and the triple bottom line are integral sustainability research areas. In addition, the results indicate five required topics for examining sustainability in the marketing context: external-internal focus, social-environmental emphasis, legal-ethical-discretionary intent, marketing assets, and financial performance. Supported by the capabilities-based resource perspective, the sustainability-focused typology and framework advanced provide directed structure for future research.