Frank’s first book
2021-12-12
Chapter 1 Preface
1.1 Selling and buying process:
1.1.1 Salespeople skill/ preception
include the intuition/ first impression, price importance sensing. salespeople skill vs. adaptive selling, SOCO.
Adaptive selling: conceptualization, measurement, and nomological validity
Introduce the skill of adaptive selling. even thought all adapt, but to what extent is not clear. how effective is not clear.
A 16-item scale is developed to measure the degree to which salespeople practice adaptive selling-the degree to which they alter their sales presentation across and during customer interactions in response to the perceived nature of the sales situ- ation. This paper-and-pencil scale assesses self-reports of five facets of adaptive selling: (1) recognition that different sales approaches are needed for different cus- tomers, (2) confidence in ability to use a variety of approaches, (3) confidence in ability to alter approach during an interaction, (4) collection of information to fa- cilitate adaptation, and (5) actual use of different approaches. The reliability of the scale is .85. Support for the nomological validity of the scale is found by failure to disconfirm relationships with an antecedent (intrinsic motivation), several general personality measures of interpersonal flexibility (self-monitoring, empathy, locus of control, and androgyny), and a consequence (self-reported perfo
Know Your Customer: How Salesperson Perceptions of Customer Relationship Quality Form and Influence Account Profitability
salespeople’s skill in sense the customer impacts the account profit
Firms often utilize salesperson intelligence in marketing strategies to improve sales performance. However, this approach is problematic if the information is based on inaccurate perceptions. In light of this, the authors introduce a theoretical model to study the antecedents and profit impact of salesperson perceptions of customer relationship quality. Dyadic analyses using matched survey responses from salesperson–customer dyads and secondary performance data reveal several insightful findings. Results show that self-efficacious salespeople are upwardly biased, whereas customer-oriented salespeople are downwardly biased in their perceptions of customer relationship quality. However, managers can correct these inaccuracies using a behavior-based control system. Response surface analyses illustrate that the effects of salesperson accuracy and inaccuracy are distinct and curvilinear. During later relationship phases, salespeople profit more from salesperson accuracy in high- and lowquality relationships (i.e., a U-shaped effect). Yet the increasingly harmful impact of salesperson inaccuracy on profit is more severe during earlier relationship phases. Together, these findings highlight the benefits of measuring salesperson perceptions and how to manage them
(Roman Avila and Iacobucci 2010)
Antecedents and consequences of adaptive selling confidence and behavior: a dyadic analysis of salespeople and their customers
antecdent and consequence of adaptive selling
Personal selling is thought to be a very effective marketing vehicle. The notion of adaptive selling suggests that it should work better than any other means of communication because salespeople are able to develop a unique message for each customer. This research proposes a model of key antecedents and consequences of adaptive selling. In particular, we distinguish, measure, and model the attitudinal and behavioral aspects of adaptive selling, something that is encouraged but not thoroughly examined in the literature. Hypotheses are tested using data from 210 salesperson-customer dyads. The results indicate that a salesperson’s perception of the firm’s customer orientation has an effect on adaptive selling behavior through the salesperson’s adaptive selling confidence, role ambiguity, intrinsic motivation and customer-qualification skills. Adaptive selling behavior increases salesperson’s outcome performance, customers’ evaluations of satisfaction with the product and with the salesperson, which enhance customers’ anticipation of future interactions with the salesperson. The implications for management and theory are discussed.
1.1.2 Communication - intraorganization
Sales manager’s impact on the salesperson job outcomes
drawing from several diverse streams of research, the authors develop the rationale and empirical background for considering the role of sales manager communication practices. Using a multifaceted conceptualization of communication as its base, the study justifies, proposes, and evaluates a model describing the relations among sales managers’communication practices and salesperson ambiguity, satisfaction, performance, and commitment. The results support the hypothesized model and suggest that sales manager communication practices are associated with these important salesperson job outcomes.
Social Networks Within Sales Organizations: Their Development and Importance for Salesperson Performance
Salespeople’s communication among peers on their job performance
Although the study of salesperson performance traditionally has focused on salespeople’s activities and relationships with customers, scholars recently have proposed that salespeople’s intraorganizational relationships and activities also play a vital role in driving sales performance. Using data from 286 salespeople in a unique social network analysis, the authors explore the effects of salespeople’s intraorganizational relationships on objective salesperson performance as well as the role of political skill in developing intraorganizational relationships. The results indicate that two types of social network characteristics (i.e., relational centrality and positional centrality) contribute substantially to salesperson performance. Moreover, salespeople’s political skill is shown to be an antecedent to relational centrality but, surprisingly, not positional centrality. This finding demonstrates that researchers should not assume that all centralities represent similar underlying network characteristics. In light of these results, the authors discuss several implications for both managers and researchers as well as directions for further research
1.1.3 Communication Interorganization - customer
(Boorom, Goolsby, and Ramsey 1998)
Relational Communication Traits and Their Effect on Adaptiveness and Sales Performance
How does the salesperson trait affects the communication effectiveness and then on the job performance.
Two relational communication traits, communication apprehension and interaction involvement, are investigated within an adaptive selling framework to assess their impact on salesperson adaptiveness and sales performance. Using a sample of 239 insurance salespeople, results demonstrate that salespeople exhibiting lower levels of communication apprehension are more highly involved in communication interactions, and higher involvement facilitates increased adaptiveness and sales performance. This research highlights the importance of effective communication within sales interactions and offers suggestions to improve salesperson communication skill
Relational Communication: Form versus Content in the Sales Interaction
two type of f2f comm: content and relationship
In view of the importance of interpersonal com- munication in the face-to-face selling interaction, this discussion seeks to provide a more complete picture of the actual communication process by introducing a concept new to the marketing liter- ature. The concept is relational communication, which refers to that part of a message beyond the actual content which allows communicators to ne- gotiate their relative positions. Thus, the message sender can either bid for dominance, deference, or equality. The message receiver, in turn, can ac- cept the bid or deny
1.1.4 Sales marketing interface
(T. M. Smith, Gopalakrishna, and Chatterjee 2006)
A Three-Stage Model of Integrated Marketing Communications at the Marketing–Sales Interface
The marketing and sales functions in many firms are often at odds despite their common goal of increasing revenue and profit. The finger pointing goes both ways: Marketing complains of poor lead follow-up by sales, and in turn, sales grumbles about the quality of leads generated by marketing. This disconnect can be damaging; high lead volumes generated through effective marketing campaigns could actually hurt downstream sales because of wasted effort on poorly qualified leads and/or delays in sales follow-up resulting from limited sales force capacity. To examine the revenue and profit implications of coordinated communications efforts at the marketing–sales interface, the authors develop a three-stage model that captures the effects of sequential marketing/sales communications on lead generation, appointment conversion, and sales closure. The results, which are based on a collaborative effort with a large home improvement retailer, suggest a complex interplay among marketing efforts (multiple media that generate leads), delays in follow-up (time lag between inquiry and sales force contact), and sales efficiencies (appointment and sales conversion). The findings underscore the impact of multimedia spending on the timing and effectiveness of subsequent communications, implying that improved internal collaboration between marketing and sales can offer significant upside potential for the firm. Finally, the authors develop a managerial decision support tool to simulate the impact of varying communications budgets, timing, and allocation on the marketing and sales planning system.
1.1.5 Firm level impact on salespeople
Engaging a product-focused sales force in solution selling: interplay of individual- and organizational-level conditions Solution selling transform from product focused selling .
This study explains how manufacturers tackle the critical managerial challenge of transforming a product-focused sales force to undertake solution selling. Through an application of configurational theory, the authors explain how individual and organizational conditions combine to determine salespeople’s engagement in solution selling. Multilevel, multisource data from the sales organization of a global supplier of building solutions represent input from salespeople (N = 184), solution champions (N = 23), and sales managers (N = 26). A fuzzy set qualitative comparative analysis reveals no single, optimal way to overcome transformation challenges. Rather, consistent with prior research, solution selling requires certain types of salespeople, because valuebased selling is a necessary condition for successful engagement. Beyond this foundational condition, a heterogeneous sales force can be engaged, as long as the organization provides appropriate support that is tailored to individual salespersons’ needs. The findings affirm that this viable support can come from either sales managers or solution champions
(J. B. Smith and Barclay 1997)
The Effects of Organizational Differences and Trust on the Effectiveness of Selling Partner Relationships
organizational level selling together
Selling alliances that are formed to cooperatively develop and maintain customer relationships are among the new organizational forms that marketing managers utilize for competitive advantage. To be successful, these alliances require sales representatives from allied organizations to work effectively as selling partners. The authors develop a trust-based model of effective selling partner relationships and test it in the context of the computer industry. Par- tial Least Squares analysis of 103 dyadic relationships found that organizational differences were modest predic- tors of three dimensions of mutual perceived trustworthiness, which in turn differentially affected three trusting behaviors. Trusting behaviors were found to have a somewhat greater effect on perceived task performance than on mutual satisfaction, whereas dimensions of trustworthiness had both direct and indirect effects on satisfaction. The authors discuss the managerial and theoretical implications of th
1.1.6 Salesperson trait orientation
Emotional Intelligence in Marketing Exchanges
EQ’s impact on the sales performance
This research examines how sales professionals use emotions in marketing exchanges to facilitate positive outcomes for their firms, themselves, and their customers. The authors conduct three field studies to examine the impact of emotional intelligence (EI) in marketing exchanges on sales performance and customer relationships. They find that EI is positively related to performance of real estate and insurance agents, even when controlling for the effects of domain-general EI, self-report EI, cognitive ability, and several control variables. Sales professionals with higher EI are not only superior revenue generators but also better at retaining customers. In addition, the authors demonstrate that EI interacts with key marketing exchange variables—customer orientation and manifest influence—to heighten performance such that high-EI salespeople more effectively employ customer-oriented selling and influence customer decisions. Finally, the results indicate a complementary relationship between EI and cognitive ability in that EI positively influences performance at higher levels of cognitive ability. These findings have implications for improving interactions between buyers and sellers and for employee selection and training
(McFarland, Rode, and Shervani 2015)
Moderator of the EQ’s effect on job outcomes
A contingency model of emotional intelligence in professional selling Abstract Despite significant attention from practitioners and broad claims of the importance of Emotional Intelligence (EI), empirical support for its incremental direct effects on outcomes relevant to professional selling has been disappointing. However, little research has included relevant contextual variables or the potential interactions of EI with contextual variables when considering its effects. This contingency view of EI maintains that EI is important in work settings, but only under certain conditions. Drawing on the appraisal theory of emotions, the authors develop a contingency model, which proposes that salesperson EI moderates the harmful effects of role stress on three work outcomes—emotional exhaustion, customer-oriented selling, and sales performance. Using three matched data sources from multiple professional selling workgroups in a business-tobusiness sales setting, the authors find that EI moderates the relationship between role ambiguity and all three outcome variables.
(Lam, DeCarlo, and Sharma 2019)
Salesperson ambidexterity in customer engagement: do customer base characteristics matter?
salesperson orientation moderated by customer base on sales performance
This research examines how sales professionals use emotions in marketing exchanges to facilitate positive outcomes for their firms, themselves, and their customers. The authors conduct three field studies to examine the impact of emotional intelligence (EI) in marketing exchanges on sales performance and customer relationships. They find that EI is positively related to performance of real estate and insurance agents, even when controlling for the effects of domain-general EI, self-report EI, cognitive ability, and several control variables. Sales professionals with higher EI are not only superior revenue generators but also better at retaining customers. In addition, the authors demonstrate that EI interacts with key marketing exchange variables—customer orientation and manifest influence—to heighten performance such that high-EI salespeople more effectively employ customer-oriented selling and influence customer decisions. Finally, the results indicate a complementary relationship between EI and cognitive ability in that EI positively influences performance at higher levels of cognitive ability. These findings have implications for improving interactions between buyers and sellers and for employee selection and training
1.1.7 Salesperson non-sales activity/ service
Understanding and resolving major contractual breaches in buyer–seller relationships: a grounded theory approach
Abstract In business-to-business relationships, sellers are often faced with instances of contractual breaches by buyers. In many cases, relationship factors preclude legal enforcement of contract terms, requiring sellers to explore alternate resolution options. Literature on contractual breaches has primarily focused on enforcement options based on terms specified in the contract. However, little is known about how companies deal with contractual breaches by their customers when legal enforcement is not a viable option. The authors use a grounded theory approach to investigate this important issue. Based on in-depth interviews with 40 supplier managers and executives in multiple industries, the authors identify: (a) types of out-ofcontract alternatives for resolving breaches, (b) factors that lead to use of enforcement options outside the terms specified in the contract, (c) contextual influences, and (d) individual and firm-level consequences of outside-ofcontract enforcement.
Initiating value co-creation: Dealing with non-receptive customers
deal with co-creation reluctance. co-creation to improve the offering.
Scholarly emphasis on the significance of integrating customer and supplier work processes to co-create customer value is increasingly important. While suppliers and customers working closely is imperative for the success of the value co-creation (VCC) process, customers’ reluctance at times to allow suppliers into their environments has not been fully explored. The present study is an expansive qualitative inquiry consisting of 114 in-depth interviews across 57 business-to-business evaluations that aims to understand both the nuanced nature of customer non-receptivity to specific VCC initiatives and those strategies suppliers may adopt to successfully manage it. Findings elicit three potential kinds of customer non-receptivity: apathy, ambivalence, and annoyance. Furthermore, conclusions propose six strategies suppliers may use to manage customer non-receptivity: intrinsic initiative, inspiration and implementation, complexity absorption, value alignment, credibility building, and objective centrality.
(Panagopoulos, Rapp, and Ogilvie 2017)
Salesperson Solution Involvement and Sales Performance: The Contingent Role of Supplier Firm and Customer–Supplier Relationship Characteristics
salespeople invovled in the solution (not solution selling)’s impaact on the long term performance
Salespeople play a crucial role in their firms’ efforts to provide customer solutions. However, little research has examined how salesperson involvement in customer solutions can be conceptualized, whether it pays off, and what boundary conditions might heighten its performance effects. This study addresses these gaps and offers a conceptualization of salesperson solution involvement by focusing on the set of salesperson-related activities that enact the four relational processes inherent in customer solutions. The authors collect a unique data set that includes a wide range of firms, industries, and countries, as well as the perspectives of both salespeople and customers, across five studies. Results validate the stability of the conceptualization across contexts. They also reveal that salesperson solution involvement is systematically related to increases in both subjective and objective, time-lagged measures of sales performance. Finally, results show that the performance effects of salesperson solution involvement are amplified under higher levels of firm’s product portfolio scope, sales unit cross-functional cooperation, and customer–supplier relationship tie strength. Surprisingly, customer adaptiveness is not found to moderate the performance effects of salesperson solution involvement.
1.1.8 B2G
In business-to-government and business-to-business transactions, suppliers often have limited access to buyers during the buying process. The authors term these buyers “barricaded buyers.” Despite the prevalence of barricaded buyers in practice, research has remained largely silent on the topic. Therefore, the authors combine insights from eight organizational purchasing case studies and individual interviews with signaling theory to advance a conceptual framework that highlights ways a supplier can increase its competitiveness (and, correspondingly, its selection likelihood) when selling to barricaded buyers. The framework reflects three distinct ways in which signaling occurs or influences the barricaded buying process: the seller signals to buyers (e.g., through novel solutions, explicit responding), the seller signals to competing sellers (e.g., through peacocking), and the buyer signals to sellers whose meaning is jammed (e.g., through supplier-specific capabilities and language). The framework invokes barricade restrictiveness as an important contingency variable that lends nuance to when the signaling activities are most likely to affect suppliers’ competitiveness.