The impact of sales encounters on brand loyalty

Gaining and sustaining brand loyalty is a key challenge in increasingly competitive markets. Many marketing researchers as well as practitioners emphasize the critical role of the interpersonal interaction between the customer and the salesperson in influencing customer satisfaction, generating favorable brand attitudes and strengthening the bond between the customers and the brand. So far, empirical research that investigates how sales encounters impact brand loyalty by enhancing customer satisfaction with the sales encounter is lacking. Using data from 154 dyads of customers and salespersons of a large automobile brand, this study shows the perceptions of both the customer and the salesperson regarding the impact of sales encounter performance on satisfaction. Sales encounter satisfaction, in turn, leads to brand loyalty by enhancing brand attitude and salesperson loyalty.     

Motivating industrial salesforce with sales control systems: An interactive perspective

This research examines the interactive effects on industrial salespeople's intrinsic and extrinsic (I/E) motivation of outcome control, activity control, and capability control above and beyond their main effects. I/E motivation are disaggregated into their cognitive and affective dimensions. Moderated regressions using a sample of industrial salespeople find that (1) outcome control and capability control have positive interactive effects on task enjoyment and recognition seeking, (2) outcome control and activity control have a positive interactive effect on compensation seeking but a negative interactive effect on task enjoyment, and (3) activity control and capability control have a negative interactive effect on recognition seeking. Moreover, we find that compensation seeking has a stronger positive effect on sales performance when salespeople deal with more new customers whereas the opposite is true for challenge seeking; compensation seeking appears to elevate job satisfaction only when there is a lower percentage of new customers but the positive effect of recognition seeking on job satisfaction is enhanced when salespeople handle a higher number of new accounts. These findings offer important theoretical and managerial implications by providing compelling evidence that sales control interactive effects should be considered when studying relationships among sales control systems, salesperson motivation, and job outcomes.     

Customer participation and citizenship behavioral influences on employee performance, satisfaction, commitment, and turnover intention

Despite increasing awareness of the importance of customer behaviors in service delivery, understanding consequences relating to employees receives little attention. Therefore, using data from a large electronic firm relating to customers, employees, and managers, this study examines the effects of customer participation and citizenship behavior on employee performance, satisfaction and commitment, as well as indirect effects on turnover intention. Furthermore, the study examines how similarity and likeability moderate the effects of customer participation and citizenship behavior on employee satisfaction. The study also includes a laboratory experiment and provides further support for causal direction. The article discusses marketing implications of the results.     

Artificial intelligence as a boundary-crossing object for employee engagement and performance

The study proposes AI-powered tools and applications as boundary-crossing objects to examine how AI performance can affect employees' job engagement, service and job performance. Job security is modelled as a moderator in the boundary-crossing process. Several theories including boundary crossing, goal setting and self-regulation are drawn on to posit these relationships. The study was undertaken with Australia-based full-time employees who had experience with AI-powered tools at work. The results show that AI performance had a significant effect on job engagement, and employee service performance, which were significantly related to job performance appraisal. Job engagement and service performance exhibited significant mediation effects between AI and job performance. The moderation effect exerted by job security was significant in enhancing employees’ job engagement and service performance. The study contributes to service research and human resource management literature. The findings have implications for service marketers and human resource practitioners.     

Customer compliance with employee fuzzy requests in service encounters: a self-determination theory perspective

Service Business - This research proposes a theoretical model to explain customer compliance with employee fuzzy requests in service encounters from a self-determination theory perspective....     

Reducing employee turnover intention: a customer relationship management perspective

Research examining ways to prevent employee turnover has observed varied and often inconsistent findings, yet this remains a challenge to many firms, particularly call centers. This study therefore examines the impact of customer relationship management (CRM) dimensions on employee job satisfaction and intention to quit. A two-step methodological approach utilizing data from the Malaysian call center industry was used. The study conducted preliminary qualitative investigations (from literature and a focus group), and survey data were then used to test the conceptual model via structural equation modeling. The findings establish that a properly initiated and implemented CRM strategy will engender employee job satisfaction thereby resulting in significantly reduced intention to quit. The study identifies the key CRM dimensions that can be useful for call center managers in enhancing employee job satisfaction and averting employee turnover intentions. Implications for marketing theory and practice as well as areas for future research are discussed.     

Evidence-based recommendations for employee performance monitoring

From security cameras to GPS tracking systems, nearly 80% of organizations use some type of electronic performance monitoring (EPM). EPM uses technology to gather, store, analyze, and report employee behavior (e.g., productivity, use of company time, incivility). The objective, real-time data that EPM systems collect can be used for performance appraisal, training and development, logistical tracking, wellness programs, employee safety, and more. Despite the organizational benefits of EPM, these systems can have adverse effects on employee satisfaction, organizational commitment, fairness perceptions, and employee behavior. Research provides evidence, however, that these downfalls can be mitigated by implementing these systems with employee attitudes and privacy perceptions in mind. Using theory and empirical research evidence, we offer five recommendations for maximizing the positive effects and minimizing the negative effects of EPM: (1) Be transparent with employees about EPM use, (2) be aware of all potential employee reactions to being monitored, (3) use EPM for learning and development rather than deterrence, (4) restrict EPM to only work-related behaviors, and (5) consider organizational makeup when implementing an EPM system.     

Customer satisfaction and retail sales performance: an empirical investigation

We measure the links between store attribute perceptions and customer satisfaction, and between customer satisfaction and sales performance. Our data set consists of six waves of customer satisfaction and sales data for about 250 retail outlets over the period 1998-2001 for a publicly held supermarket company. We construct a statistical model to address nonlinearities and asymmetries in the satisfaction-sales performance links, and we illustrate how retailers can affect store revenues by managing customer satisfaction. Contributions of our study include the analysis of behavioral consequences of customer satisfaction in the food retail sector, the accommodation of complexities in the satisfaction-sales performance links based on an empirical model of first differences, and a discussion of how managers can employ the results for customer satisfaction policies.     

The employee brand: Is yours an all-star?

In this article, a typology is presented which will help organizations better reflect the brand image they desire. The assisting typology is based on the extent to which employees know and understand the organization's mission, values, and desired brand image, and the degree to which they perceive their psychological contracts with the organization as being honored. Organizations can be classified as all-stars, rookies, injured reserves, or strike-out kings, based on the characteristics of a preponderance of their employees. As categorized, rookie organizations cannot deliver the desired brand image because most of their employees lack the knowledge and understanding to do so. Injured reserve organizations, on the other hand, cannot achieve the same because firm employees perceive their psychological contracts with the organization as having been violated, which renders the individuals unwilling and unmotivated. For their part, strike-out king organizations share rookie and injured reserve organizations' worst characteristics. Finally, and conversely, all-star organizations consistently deliver the desired brand image to others because their employees are both able and motivated to do so. To help firms attain this highly desired status, specific guidelines are presented herein which may help organizations become “all-stars” in their own right.     

Role of authentic leadership and personal mastery in predicting employee creative behavior: A self-determination perspective

Personality dispositions and their role in inducing employee creative behavior are well documented in the literature. However, much is unexplored about the collective and relative contribution of personality orientations and environmental factors in explaining creative behavior. This study used a framework based on selfdetermination theory (SDT) to measure the combined and relative contribution of personal mastery orientation and authentic leadership in predicting employee creative behavior as mediated by autonomous motivation. A self-reported survey was conducted among software developers working in software houses. The results of the study show that both personal mastery and authentic leadership are significant predictors of employee creative behavior. In addition, autonomous motivation significantly mediates the relationship between personal mastery, authentic leadership, and creative behavior. The findings of the study lend support to the combined effect of personality orientation and environmental factors in predicting employee creative behavior and test the SDT framework’s efficacy in predicting creative behavior.     

When Sales Managers and Salespeople Disagree in the Appreciation for Their Firm: The Phenomenon of Organizational Identification Tension

Marketing literature emphasizes the importance of organizational identification in the sales force. However, empirical research has so far focused on the separate analysis of the consequences of either sales managers’ or salespersons’ organizational identification, largely ignoring their interactive effects. This study seeks to address this research void by exploring the phenomena of organizational identification agreement and organizational identification tension in the sales manager–salesperson dyad. In contrast to organizational identification agreement, organizational identification tension occurs in a sales manager–salesperson dyad if the sales manager and the salesperson differ in the strength of their organizational identification. Analysis of a triadic data set using hierarchical linear modeling supports the authors’ hypotheses that increasing the level of organizational identification agreement is beneficial but increasing organizational identification tension can have severe negative consequences for the satisfaction of a salesperson's customers and the salesperson's performance. The study additionally explores how sales managers’ leadership styles (charismatic vs. transactional), combined with the appropriate control system (behavioral vs. outcome control), can be effective in avoiding organizational identification tension.     

It takes two to tango: The role of customer empathy and resources to improve the efficacy of frontline employee empathy

This study investigates the link between employee empathy and customer satisfaction. Building on social exchange theory, we develop a model of employee-customer empathy. We focus on the central role of customer-oriented behaviour in explaining the empathy-satisfaction relationship, predicting that employee empathy positively influences customer-oriented behaviour, which in turn enhances customer-satisfaction. We also examine the moderating roles of customer empathy, as well as of customer resources. Results of a dyadic-survey study of 211 pairs of frontline employees and their customers support the proposed moderated -mediation model. Theoretical and practical implications are discussed.     

Measurement of organizational investments in social capital: The service employee perspective

This paper describes the development and validation of a measure of organizational investments in social capital (OISC). The scale development process is carried out over three stages (item generation, scale purification, scale validation), with two separate data collection phases involving a total of 735 working adults from multiple and diverse service-related workplace settings. As such, the data provide evidence for the face, content, discriminant, convergent and nomological validity, dimensionality and reliability of the OISC measure. The OISC measure is a concise, unidimensional scale that has the potential for significant usage in the development and testing of theory, as well as practical application in retail and other service provision contexts.     

A CSR perspective to foster employee creativity in the banking sector: The role of work engagement and psychological safety

The entire service sector has acknowledged the importance of employee creativity. However, the underlying mechanism due to which employees are engaged in creativity has been relatively unexplored. Moreover, where the banking service sector in advanced countries has realized the potential role of employee creativity for a bank's success, the same was not fully realized in the context of a developing country, especially in Pakistan. Against this backdrop, the current study is an effort to explore the underlying mechanism of employee creativity as an outcome of corporate social responsibility (CSR) with the mediating effects of work engagement (WE) and psychological safety (PS) in the banking sector of Pakistan. Data were collected (n = 483) from banking employees through a self-administered questionnaire, which used the paper and pencil method. The hypotheses of the current survey were validated by employing structural equation modeling (SEM) in AMOS software. The results confirmed that employee creativity, as an outcome of CSR, was significantly influenced by the CSR orientation of a bank. Furthermore, PS and WE produced a significant mediation effect (41%) between the relationship of CSR and employee creativity. The findings of the current study are helpful to the banking sector of Pakistan in understanding the CSR-employee creativity mechanism, which is of utmost importance from the standpoint of competition.     

The configuration of employee retention practices in multinational corporations’ foreign subsidiaries

This paper contributes to turnover research by deriving a typology of retention practices and investigating their applicability in multinational corporations’ (MNCs) foreign subsidiaries in the light of home- and host-country effects. Linking institutional and strategic HRM perspectives, the paper then proposes a conceptual framework examining how MNCs can maximize their retention capacity. Specifically, MNCs need to align their transferable home-country retention practices with overall strategy and complement them with flexible context-specific practices to allow for adaptability across different subsidiaries. It is further argued that characteristics of the headquarters–subsidiary relationship will influence the relative importance of context-generalizable versus context-specific retention practices and that the relevant set of practices for each subsidiary then needs to be configured individually.     

Combined effects of franchise management strategies and employee service performance on customer loyalty: a multilevel perspective

Although franchisee performance is likely to be influenced by franchisors’ management strategies, little is known about whether and how franchisors’ strategies affect franchisee employees’ performance. This study examines the combined effects of three franchisor management strategies, namely innovative culture, support services and autonomy on service performance of the franchisee store employees and the loyalty of their customers. Data were collected from a total of 38 employees and 679 customers of 25 franchisee stores. The study employs multilevel analysis on a nested data-set created by matching customer data with employee data for each store. The results reveal that customer loyalty of a franchisee store is positively influenced by the service performance of its employees and the support services received by the employees of the store from its franchisor. On the other hand, it has been found that franchisor management strategy such as innovative culture and autonomy negatively influence customer loyalty of the franchisee store. The paper discusses relevant theoretical and managerial implications of the findings.     

Corporate social responsibility and employee attitudes: The moderating role of employee age

This study examines the role of corporate social responsibility (CSR) on employee engagement and job satisfaction. Using 322 responses from employees of selected companies in Ghana, and employing hierarchical regression analysis, the study examines the direct impact of economic, legal, ethical and discretionary CSR practices on employee satisfaction and engagement in organisations. The study further explores the moderating role of employee age on the relationship between CSR and employee engagement and satisfaction. The results provide evidence that economic, legal, ethical and discretionary CSR practices influence higher employee engagement and satisfaction levels at work. However, the study finds no evidence of employee age moderating the association between each of the four CSR dimensions and employee job attitudes (engagement and satisfaction). These findings are insightful and provide a response to calls for research on these issues. The study contributes to the literature by demonstrating that ethical CSR practices strongly influence employees' satisfaction and engagement levels; legal and discretionary CSR activities also have an influence, though to a lesser extent; and the economic dimension of CSR activities has the least impact. The managerial, practical and further research implications of these findings are discussed.     

To be engaged or not to be engaged: The antecedents and consequences of service employee engagement

Drawing on the Job Demand-Resource (JD-R) model, this study explores the antecedents and consequences of service employee engagement. The model examines the main effect of resources (autonomy, feedback, and support) on engagement and how the interaction among resources impacts engagement. Further, the model also examines the mediating role of engagement in linking resources to customers' perceived level of service employee performance. The study uses multi-level modeling on data from 482 service employees and customers in 66 retail stores. Results suggest that supervisory feedback is positively related to engagement while supervisory support is not. More engagement is related to more positive service employee performance. Regarding the interactions, supervisory support had a positive effect while supervisory feedback had a negative effect on engagement at high levels of perceived autonomy. Also, engagement was a full mediator between supervisory feedback and service employee performance. Implications for retail service management are discussed.     

Employee versus supervisor ratings of performance in the retail customer service sector: Differences in predictive validity for customer outcomes

Based on data from Maxham and Netemeyer [Maxham, J. G. and R. G. Netemeyer (2003). “Firms Reap What They Sow: The Effects of Employee Shared Values and Perceived Organizational Justice on Customer Evaluations of Complaint Handling,” Journal of Marketing, 67, 46-62], the authors present two field samples to examine predictive validity differences of service employee ratings of their performance versus supervisor ratings of employee performance with respect to customer satisfaction and customer likelihood of spreading positive word-of-mouth (WOM) after a service recovery attempt. The results generally show that supervisor ratings are more strongly positively related to customer satisfaction and WOM than are employee ratings of their own performances. The results also show that both supervisor ratings and employee ratings are related to customer satisfaction and WOM in a curvilinear fashion (as well as linear fashion). Employee extra-role performances (toward customers and the firm) show increasing returns at the higher levels of performance, and employee in-role customer performance generally shows a decreasing return at the higher level of customer in-role performance.These results suggest two managerial implications. First, supervisor ratings of customer service employee performances may be the preferred form of measurement for predicting customer outcomes. Second, maximizing in-role performance inputs may have decreasing returns for customer evaluations in the service recovery context; but maximizing extra-role performance inputs may actually “delight” customers, i.e., increasing returns for customer evaluations.     

The crisis cloud's silver linings: The effects of hope and gratitude on employee burnout and engagement

A crisis such as the COVID-19 pandemic has a tremendous impact on organisations and their employees. Building on the job demands–resources model, conservation of resources theory and the broaden-and-build theory of positive emotions, we examined the influence of job stressors on employee burnout, as well as how positive emotions can help employees thrive in tough times. We collected data from 503 Australian employees during the transition period of the COVID-19 crisis, when the country had reached a high vaccination rate and was starting to prepare to return to pre-crisis normal. Our findings show that financial insecurity has a direct impact on employee burnout, whereas a health threat has only an indirect effect. Further, our findings highlight the importance of positive emotions. Hope for the post-crisis future was found to buffer the negative impact of financial insecurity and reduce employee burnout, and feeling gratitude at work was found to mitigate the effects of burnout and enhance employee engagement even when employees are emotionally exhausted.