Are sales as we know it dying … or merely transforming?

The world of sales research continues to transform as we move more into the world of social media. This article briefly examines a historical examination of sales research by decade and then presents a model of sales research needs going forward based on how social media is being implemented by selling and buying organizations. The model assumes that the selling process is incorporated within a social media world and elements within the model include the salesperson and sales center, the buyer and buying center, the use of artificial intelligence, the teleselling unit, the interaction between marketing and sales departments, and the methods of selling. Discussion follows the model, focusing on how social media is being used among and between units in the selling process. The discussion unfolds on three key parts of the sales equation: (1) the sales organization, (2) the buying organization, and (3) the interaction between marketing and selling departments. Research questions follow each of the three discussion sections.     

Sales Technologies,Sales Force Management,and Online Infomediaries

An information intermediary (or infomediary) is an online firm that plays an important role in the information component of a transaction but not in the logistics component. Infomediary sales channels in which leads that originate online are converted to sales by an offline sales force are particularly important in areas such as automobile retailing, real estate, insurance, mortgages, and many other contexts. This research examines the role of sales technologies and the organization of the sales force in creating value for infomediary sales channels, formally examining channel outcomes using an analytical model and empirically examining channel outcomes using a survey of 678 automobile dealerships. The analyses indicate that adoption of sales technologies for lead management and channel-specific salespeople influence leads purchased (from infomediaries) and infomediary channel sales for the retailer. These findings integrate important technologies from outside the organization (infomediaries) and technologies and management structures inside the organization (sales technologies for lead management and channel-specific salespeople) into an understanding of retailer use of infomediary channels. These findings also suggest that it is in the best interest of infomediaries to offer sales technology and services to retailers, bundling information products with technologies for channel management.     

Hybrid sales structures in the age of e-commerce

Sales organizations continue to exhibit meaningful changes in their structures during the e-commerce era. This article examines the impact of Internet technology on the evolution of sales organizations and identifies key components underpinning a successful hybrid sales structure. A comprehensive review of sales organization studies leads to the derivation of a hybrid sales structure model, as well as a series of key recommendations pertaining to the organization and sales performance. These findings establish a platform for further research into the hybrid sales structure. The transition from a reliance on traditional, outside sales forces to a concomitant use of inside sales personnel produces hybrid sales structures that can accommodate online buyer–seller interactions and also leverage technological advances in sales automation and business intelligence to boost sales performance.     

Moving beyond ethical decision-making: a practice-based view to study unethical sales behavior

Changes in the business environment are rapidly transforming sales practice and pressuring the integrity of key actors in sales. Given that unethical sales behavior is a social activity produced and reproduced by various actors in a complex sales task environment, we introduce a novel research perspective to the study of unethical sales behavior, namely a practice-based view. With knowledge from a systematic literature review and a practice-based view from organization research, we suggest that unethical behavior should be studied as a practice formed through socialization and interaction with relevant others. This view provides an important alternative as well as a complementary perspective to the ethical decision-making paradigm that has dominated the field for several decades. The study answers scholars’ recent calls to strengthen the theoretical foundation of sales ethics research and further extend its perspective toward the social context of sales. With a focus on dynamics, social relations, and the enactment of practices, the practice-based view produces new types of knowledge on unethical behavior and potential new means for addressing it. The article makes suggestions for future practice-based research and proposes several theories for use in studying unethical behavior in currently important sales contexts.     

Trust that binds: the impact of collective felt trust on organizational performance

The impact of employees' collective perceptions of being trusted by management was examined with a longitudinal study involving 88 retail stores. Drawing on the appropriateness framework (March, 1994; Weber, Kopelman, & Messick, 2004), the authors develop and test a model showing that when employees in an organization perceive they are trusted by management, increases in the presence of responsibility norms, as well as in the sales performance and customer service performance of the organization, are observed. Moreover, the relationship between perceptions of being trusted and sales performance is fully mediated by responsibility norms.     

How Outgroup Salespeople Fit in or Fail to Fit in: A Proposed Acculturation Effects Framework

The findings of several research studies suggest that gender, culture, and ethnic group are associated reliably with differences in workplace behaviors. This paper looks beyond demographic differences to a broader concept of group-based differences and addresses how differences in the behavioral reactions of outgroup sales trainees affect sales managers' attempts to socialize them into the organization. It is important for sales managers to be able to understand how differences are related to workplace behavior as sales forces become increasingly diverse. A framework and research propositions are offered based on theories of socialization, acculturation, and person—organization fit. In addition, interviews were conducted with salespeople to assess the viability of the proposed framework. Several areas of future research emerge as a result of this exploratory discussion.     

Book Review

In most industries, sales force turnover is high and very costly to an organization. This paper argues that sales force turnover refects the quality of sales management performance and that a systematic analysis of sales force turnover can provide clear guidance to increased sales management’s practices and effectiveness. For that purpose, a simple and fexible fve-step procedure relying on the concept of a salesperson’s “replacement value” is proposed. It requires only some systematic data collection from leavers at the exit interview time. A case study illustrates the procedure.     

Eliciting Consumer Choice Heuristics: Sales Representives' Persuasion Strategies

Research has shown that consumers spend little cognitive effort in marketplace decisions (i.e., information acquisition, evaluation of alternatives). In fact, consumers simplify decision making by using decision rules learned from previous purchases. The present research explores the notion that during the course of a sales interaction, sales representatives may use expressions (i.e., primes) that encourage consumers to invoke previously used decision rules. These decision rules lead consumers to consider factors not necessarily relevant to the purchase decision (e.g., what others will think, reciprocate sales representatives' efforts, missed opportunities). Thus, consumers' thoughts are diverted from more pertinent factors such as budget and timing of the purchase. Moreover, consumers persuade themselves to purchase via thoughts concerning the decision rule and visual imagery associated with consumption. The notions of priming and schema- directed thinking are used to explain how sales representatives elicit consumers' decision rules from long-term memory. Implications of these techniques are made with regards to relationship management.     

The Manager-Salesperson Relationship: an Exploratory Examination of the Vertical-Dyad Linkage Model

Abstract

The Vertical-Dyad-Linkage Model (VDL) is offered as a tool to explore the infrastructure of a sales team. Building on the philosophy found in most sales management literature that salespersons are to be managed as individuals, VDL theory allows an exploration of the underlying social organization that is present in all sales forces. Thus, the style that a manager uses with a particular salesperson will vary depending on the exchange relationship established (cadres, hired hands). The objectives of the paper are to explore the general tenets of VDL theory, to assimilate the theory in sales management, to provide implications for sales managers and salespeople, and to discuss the important implications for sales management research.     

Influencing the salesforce through perceived ethical leadership: the role of salesforce socialization and person–organization fit on salesperson ethics and performance

With today's emphasis on building strong customer relationships in the business-to-business sales environment, appropriate leadership is necessary to instill ethical and provide the proper guidance among employees to ensure ethical decision-making and improve sales performance. This research examines the role of perceived ethical leadership as it relates to both formal and informal marketing control mechanisms (i.e. salesforce socialization) that influence person–organization fit, and how this fit relates to salesperson unethical intent and performance. Results from a study of 408 business-to-business salespeople suggest that perceived ethical leadership both directly, and indirectly via salesforce socialization, affects salesperson ethical values person–organization fit, which in turn affects salesperson performance. Based on these findings, both theoretical and managerial implications are provided, as well as directions for future research.     

The Effects of Salesperson Need for Achievement and Sales Manager Leader Reward Behavior

A sample of 312 salespeople from diverse industries was used to develop a model that examined the influence of salesperson need for achievement and sales manager positive leader reward behavior on several key organizational outcomes. The organizational outcome variables examined were goal acceptance, sales performance, and organizational commitment. The results suggest that a salesperson’s need for achievement may lead to higher performance, but not necessarily commitment to the organization. However, positive leader reward behavior may strengthen a salesperson’s organizational commitment. The findings, along with suggestions for sales managers, are discussed.     

Mixed interpretations of sales proposal signals

Long-term relationships with customers are critical determinants of a sales organization’s success. However, research tends to assess relational approaches from the salesperson or sales organization’s perspective and often neglects to capture customers’ perspectives which lead to the evaluative success or failure of buyer–seller relationships. This study assesses the seller’s bid-related signals from the buyer’s perspective following their selection or rejection of a business-to-business sales proposal. The authors adopt a theories-in-use approach, utilizing 54 depth-interviews with decision-makers from 33 buyer organizations. Within this data set, findings reveal three bid signals that are represented across both selection and rejection outcomes (i.e. mixed interpretations by buyers). These signals are the seller’s usage of price concessions, sales proposal specificity, and comparative customer examples. To better understand the mechanisms which influence buyers’ mixed interpretations of these signals, the authors utilize the newly-advanced qualitative pivoting technique to identify contextual variables across cases that influence the buyer’s positive or negative signal interpretation.     

L’apport des tests d’aptitudes dans le recrutement : l’exemple de la NV5-R

From the observation of a limited use of aptitude tests in the recruitment process, this article attempts to illustrate the relevance of such tests from applied research on the recruitment of sales persons. Thus, 32 candidates have participated in the recruitment process that is traditionally practiced by the organization, to which we have added three of the subtests of the battery NV5-R. The comparison of the scores at this test and the results of the classical procedure of recruitment for each subject shows that similar information is obtained by these two methods of selection. The contribution of aptitude tests in selection procedures has been discussed in terms of these results while laying the limitations of this study.     

Salesperson Ethical Decision Making: The Impact of Sales Leadership and Sales Management Control Strategy

Enhancing the moral behavior of salespeople is increasingly important, but difficult, in today’s fast-paced and complex selling environment. Sales organizations need to emphasize ethical codes of conduct, but must also address the potential impact of all sales management decisions on the ethical behavior of salespeople. We expand the focus on ethical codes to include an interpersonal dimension of sales organization ethical climate and the cognitive moral development of salespeople. Relationships among sales leadership and sales management control strategy, the structural and interpersonal dimensions of sales organization ethical climate, salesperson cognitive moral development, and salesperson moral judgment are discussed and specific propositions presented. These propositions suggest specific directions for future sales ethics research and have key implications for sales organizations.     

Sales Territory Alignment: An Overlooked Productivity Tool

The authors have a wide-spectrum of experience in territory alignment arising from research as well as direct interaction with over 300 sales forces. Based on their experience, they believe sales territory alignment is one of the most frequently overlooked sales force productivity areas. Many sales forces are losing millions of dollars each year because of territory imbalances. Well-managed companies are overcoming the many obstacles to good territory design by using a cogent process to realign territories. This process ensures that consistent, objective criteria are used to evaluate alignment needs, yet recognizes the importance of incorporating local management judgment.     

The Relationship Between Optimism and Coping Styles of Salespeople

Despite an awareness of the inverse relationship between stress levels and job performance, researchers have not addressed the specific coping strategies used by salespeople in their efforts to cope with sales-related stress. A framework is developed that suggests dispositionally optimistic salespeople may employ different coping strategies than do pessimistic salespeople. Support for hypotheses that have been grounded in this broad proposition was developed in a study that employed a multi-firm sales sample. Optimists were found to employ more problem-focused coping tactics, while pessimists used more emotion-focused coping. Issues relating to why problem-focused coping tactics are preferable as well as how greater use of problem-focused coping may be promoted within a sales organization are discussed.     

A TALE OF TWO CLIMATES: DIVERSITY CLIMATE FROM SUBORDINATES' AND MANAGERS' PERSPECTIVES AND THEIR ROLE IN STORE UNIT SALES PERFORMANCE

Applying Zohar's (2000) multilevel model of organizational climate, this study assessed the main and interactive effects of subordinates' and managers' diversity climate perspectives on store sales performance. Across 654 store units of a large U.S. retail organization, we observed main effects of subordinate and managerial diversity climates on unit sales percentage change and a significant subordinate × manager diversity climate perspective interaction. The greatest sales growth was found in stores wherein subordinates and management perceived highly pro-diversity climates (positive consistency). In contrast, the lowest sales growth was evident for stores in which both subordinates and managers reported less hospitable diversity climates (negative consistency). Our findings underscore the positive financial ramifications of highly consistent perceptions that diversity is valued in a work context.     

New Directions in Sales Leadership Research

The changing environment facing sales organizations is characterized by the dimensions of complexity, collaboration, and accountability. Responding effectively to this dynamic environment requires a focus on specific leadership activities by senior sales leaders, field sales managers, and salespeople. A sales leadership framework is presented and used to identify and discuss specific leadership challenges and important research questions at different sales organization levels. Several new directions for sales leadership research are proposed to improve sales leadership thought and practice.     

Revolution in Sales: The Impact of Social Media and Related Technology on the Selling Environment

Over the years several articles have tracked the impact of technology on various aspects of the sales domain. However, the advent of social media and technologies related to social media has gone largely unnoticed in the literature. This article first provides brief attention to changing aspects of technology within the sales environment, leading to the identification of social media as a dominant new selling tool. A qualitative approach (focus groups) is employed to explore the breadth of current technology usage by sales managers and salespeople. Analysis of the data, collected in the United States and the United Kingdom, reveals six major themes: connectivity, relationships, selling tools, generational, global, and sales/ marketing interface. Results provide evidence of a revolution in the buyer–seller relationship that includes some unanticipated consequences both for sales organization performance and needed future research contributions.