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.     

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.     

Need for Cognition and Affective Orientation as Predictors of Sales Performance: An Investigation of Main and Interaction Effects

Two constructs—need for cognition (NFC) and affective orientation (AO)—might be helpful in explaining and ultimately predicting two measures of sales performance: a self-rated behavioral measure and an objective sales measure. Specifically, we hypothesize (1) a positive relationship between NFC and sales performance; (2) a positive relationship between AO and sales performance; and (3) a positive interaction effect between NFC and AO on sales performance. The results of this study revealed both NFC and AO correlated with self-rated behavioral performance but only NFC correlated with both performance measures; suggesting that need for cognition may be the more influential of the two for sales organizations concerned with selling behaviors as well as sales outcomes. The hypothesized interaction effect was not supported.     

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.     

Antecedents and consequences of salesperson identification with the brand and company

To date, little research has investigated the antecedents and implications of salespersons' identification with the brands and the companies they represent. As the nature of the selling job is unique from other inside employee positions, with increased independence of the firm and loyalty that may be expanded to the customers rather than the firm itself, an investigation of this phenomenon within the sales context holds significant implication for sales force management. The salesperson also represents an extension of the marketing communication programme of the firm and thus has direct bearing on how the company and brand image are communicated to the customer. Therefore, the purpose of our paper is to hypothesize and empirically test the notion that higher levels of perceived congruence between a salesperson's own values and those values of the brand and company he or she represents will lead to higher brand identification and company identification which in turn should create higher job satisfaction, commitment and performance. We discuss our results and offer practical insights to sales managers. Further, we discuss limitations of our study and provide directions for future research.     

PSYCHOLOGICAL CAPITAL AND EMPLOYEE PERFORMANCE: A LATENT GROWTH MODELING APPROACH

The positive core construct of psychological capital (consisting of efficacy, hope, optimism, and resilience) has been conceptually and empirically demonstrated to be related to employee performance. However, much of this work has relied on cross‐sectional designs to examine these relationships. This study utilizes longitudinal data from a large financial service organization (N= 179 financial advisory‐type employees) to examine within‐individual change in psychological capital over time and if this change relates to their change in performance. Latent growth modeling analyses revealed statistically significant within‐individual change in psychological capital over time, and that this change in psychological capital was related to change in 2 types of performance outcomes (supervisor‐rated performance and financial performance, i.e., individual sales revenue). Moreover, results of an exploratory cross‐lagged panel analysis suggested a causal relationship such that prior psychological capital leads to subsequent performance rather than vice versa. Taken together, these results highlight the impact employees’ psychological capital may have on their subjectively and objectively measured performance over time and offer evidence‐based practical guidelines for human resource selection, development, and performance management.     

The Fortune 500 Companies' Selection Criteria for Promotion to First Level Sales Management: An Empirical Study

Since marketing, and particularly selling activities, determine the sources and size of a company's revenue, factors which vitally affect sales force performance are matters of crucial importance to corporate management.

Predicting how a newly appointed first level sales manager will perform in the new leadership task remains a difficult problem and the determination and use of selection criteria appears not to be clearly defined in the literature. Previous research has identified desirable attributes as selection criteria though typically these are neither ranked in importance nor as attributes that “can be developed later through training/experience” or be “innate to the person selected.” This research focused upon the selection criteria and practices of the Fortune 500 companies in selecting/appointing their first level sales managers. The results revealed that (i) the Fortune 500 human resource managers are in agreement with the findings of previous research with regard to which personality and character traits are crucial pre-requisites to good sales management performance; (ii) a surprisingly small number of firms use psychological batteries/tests or qualified psychologists to measure these traits; and (iii) turnover rates, not due to promotion, among first level sales managers appear to be high.     

Special Abstract Section: National Conference in Sales Management

Sales managers need a practical means for evaluating returns from investments in sales technology implementations (including sales automation and sales-based customer relationship management systems). This research proposes a behavioral process model approach that can be applied to evaluate sales technology implementations. We develop and test the model with data collected from the sales force of a major consumer packaged goods company. The results indicate that a salesperson’s technology orientation has a direct impact on internal role performance, and it affects performance with customers through a double-mediated mechanism involving the effective use of information and smart selling behaviors (planning and adaptive selling). Sales managers can influence sales technology orientation by providing better internal technology support, considering technology orientation along with customer’s approval of technology in account assignments, and understanding the probability of negative effects through a salesperson’s experience. In our sample, salesperson experience correlates with age, suggesting a “generation gap” effect on sales technology orientation.     

An Exploratory Assessment of Sales Culture Variables: Strategic Implications Within the Banking Industry

Growing, or even simply sustaining, profitability in today's rapidly changing environment is a daunting task. Today's firm must contend with increasing competition, changing customer requirements, and unprecedented technological change. Further, changing government regulations, such as the recent wave of deregulation, have dramatically changed the way business has traditionally been done in certain industries. In such a turbulent environment many firms have discovered that a total organizational sales effort is necessary. For many firms, this means a paradigm shift that involves strengthening their sales culture.

The purpose of this study is to empirically examine the sales culture (SC) concept and discuss its importance in contemporary business strategy. First, we will discuss market orientation from a corporate culture perspective. Second, the sales culture component of a market orientation will be defined and examined. Third, an exploratory investigation of constructs associated with sales culture will be investigated using an example taken from an industry that is experiencing rapid change, the banking industry. Finally, strategic implications, limitations and suggestions for future research will be shared.     

Studies of transformational leadership in consumer service: leadership trust and the mediating-moderating role of cooperative conflict management

This is the third in a series of studies evaluating how transformational leadership is associated with related variables such as job satisfaction, change commitment, leadership trust, cooperative conflict management, and market orientation. The present paper evaluates the effects of transformational leadership and cooperative conflict management along with their mediating and moderating of leadership trust in the life insurance industry for two sample groups, sales managers and sales employees. The main effect of leadership trust was mediated and moderated by cooperative conflict management. Cooperative conflict management made a more important contribution than transformational leadership or the moderating effect (interaction), but these three together were the most important variables predicting highest leadership trust. Transformational leadership has an indirect influence on leadership trust. This work summarizes the specific contribution and importance of building successful leadership trust associations with employees in relation to leadership and satisfaction with change commitment.     

Revisiting the relationship between impression management and job performance

Although theoretical arguments suggest that impression management should be related to job performance, empirical results have been unsupportive of the association. We argue that this relationship, however, may be found for specific jobs (sales) using a specific objective criterion (sales revenue). We tested this hypothesis across two samples. The first sample utilized a concurrent design and found a significant association between impression management and objective job performance. Furthermore, impression management demonstrated incremental validity over conscientiousness. In the second sample, using a different impression management scale and a predictive design we found that impression management was related to sales revenue, and showed incremental validity over cognitive ability. Implications for research and practice are discussed.     

How job demands, resources, and burnout predict objective performance: a constructive replication

The present study uses the Job Demands-Resources model (Bakker & Demerouti, 2007) to examine how job characteristics and burnout (exhaustion and cynicism) contribute to explaining variance in objective team performance. A central assumption in the model is that working characteristics evoke two psychologically different processes. In the first process, job demands lead to constant psychological overtaxing and in the long run to exhaustion. In the second process, a lack of job resources precludes actual goal accomplishment, leading to cynicism. In the present study these two processes were used to predict objective team performance. A total of 176 employees from a temporary employment agency completed questionnaires on job characteristics and burnout. These self-reports were linked to information from the company's management information system about teams' (N=71) objective sales performance (actual sales divided by the stated objectives) during the 3 months after the questionnaire data collection period. The results of structural equation modeling analyses did not support the hypothesis that exhaustion mediates the relationship between job demands and performance, but confirmed that cynicism mediates the relationship between job resources and performance suggesting that work conditions influence performance particularly through the attitudinal component of burnout.     

Inferring salesperson capability using stochastic frontier analysis

This paper proposes an easy-to-implement econometric method for inferring salesperson capability from archival panel data, namely stochastic frontier (SF) analysis. We demonstrate this method with a sample of salespersons provided by a life insurance company. Using the proposed SF model, we are able to estimate each salesperson’s capability. Furthermore, we examine the relationship between the estimated salesperson capability and three future outcomes (i.e. future sales performance, future customer attrition, and future salesperson turnover) under different time horizons. We find that, in general, the estimated salesperson capability has a stronger explanatory power for the near than for the more distant future. Since an individual salesperson’s capability cannot be directly observed by researchers (and thus is typically omitted), traditional analyses of sales performance suffer from an omitted-variable problem that can lead to biased estimates of focal variables. The SF model can significantly mitigate this omitted-variable problem. Statistical tests indicate that our sales performance model with estimated salesperson capability results in a statistically significant improvement in model fit. Of note, our model differs methodologically from SF models previously used in the marketing literature in that it is based on a three-component model that disentangles unobserved individual heterogeneity, efficiency, and random shocks.     

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.     

Creativity as Mediator for Intrinsic Motivation and Sales Performance

Substantial theoretical and empirical literature indicates inconsistent performance implications of intrinsic motivation, suggesting the possibility of some explanatory mechanisms. However, little is known about the factors that might explain intrinsic motivation and sales force performance relation, particularly in highly competitive and demanding fast moving consumer goods (FMCG) marketplace requiring new and useful solutions. Creativity, being a critical yet underutilized weapon in sales force arsenal, has the potential to assume the role. Therefore, this study aims at developing and testing a theory-driven framework in linking intrinsic motivation to sales performance while using sales force creative performance as partial mediator. By employing structural equation modeling, the empirical validity of the proposed mediating model is evaluated against plausible moderating model in a sample of 688 frontline field salespersons of FMCG companies in Lahore (Pakistan). Findings indicated that sales force creative performance is nurtured by intrinsic motivation that, in turn, promotes sales performance. Practical implications of findings for sales force management and suggestions for future research are presented, too.     

The Role of Sales and Marketing in Market-Oriented Companies

Since little is known about whether both marketing and sales functions pay off in market-oriented companies, this research analyzes the interaction between market orientation and the departmental power of marketing and sales within the firm. Data collected across five industries on the marginal effect of marketing’s departmental power on business performance show that market-oriented companies benefit from a strong marketing function, but a powerful marketing department cannot compensate for low levels of market orientation. Surprisingly, the power of sales impedes successful market orientation implementation. This has important implications for future sales management research. We highlight the significance of these findings for both theory and practice.     

Impression management and overclaiming on job applications: Related to future sales performance?

Despite decades of research on the role of socially desirable responding (SDR) in hiring contexts, it remains unclear whether job applicant SDR is related to future employee performance. Drawing on a large sample of 1,084 retail sales employees and their original job application data, this study examined the predictive validity of two operationalizations of SDR: (a) impression management captured using a personality scale and (b) overclaiming familiarity with a list of products that were directly relevant to the job. Neither measure was used to inform the hiring decisions. Results showed that job applicant impression management and overclaiming were unrelated to four indicators of future sales performance as employees. Implications for organizational selection policies involving applicant SDR are discussed.     

Does Coaching Matter? A Multilevel Model Linking Managerial Coaching Skill and Frequency to Sales Goal Attainment

Managerial coaching is a process of feedback provision, behavioral modeling, and goal setting with subordinates to improve their performance and address their personal challenges. Despite the popularity of coaching as a management practice, the impact of coaching on objective measures of performance remains unclear. To this end, we tested a multilevel model linking managerial coaching frequency and skill to the sales goal attainment of 1,246 sales representatives in 136 teams within a pharmaceuticals organization over a year. Managers’ coaching skill, which was evaluated in the context of a training exercise, was directly related to the annual sales goal attainment of the sales representatives that they supervised. This effect was partially mediated by team‐level role clarity, as predicted by feedback intervention theory and goal setting theory. In addition, coaching skill had a cross‐level moderating effect on the relationship between coaching frequency and sales goal attainment; coaching frequency had a negative effect on goal attainment when coaching skill was low. We discuss the implications of this finding for coaching research and practice. Overall, our results demonstrate the clear theoretical and practical importance of effective managerial coaching by drawing on multisource and multilevel measurements with a predictive design.     

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.     

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.