Salesperson time perspectives and customer willingness to pay more: roles of intraorganizational employee navigation,customer satisfaction,and firm innovation climate

This research aims to fill a critical gap in the sales literature by proposing a relationship-based model of customer willingness to pay more, involving salesperson time perspectives (i.e., long-term perspective and short-term perspective), intraorganizational employee navigation, and customer satisfaction with the salesperson. We also examine the moderating role of firm innovation climate. Multisource survey data were collected from 204 salespeople in a business-to-business sales context along with external ratings from customers of these salespeople three months later. The findings indicate that both long- and short-term perspectives have positive effects on intraorganizational employee navigation and customer satisfaction, which, in turn, positively affect customer willingness to pay more. In addition, short-term perspective has a stronger impact than long-term perspective on intraorganizational employee navigation. Further, the effect of long-term perspective on customer satisfaction is strengthened by the innovation climate of the firm, whereas the effect of short-term perspective on customer satisfaction is weakened by it.     

Benefits of team participative decision making and its potential to affect individual creativity

How does team participative decision‐making affect individual creative performance? Building on team climate theory (Anderson & West, 1998; West 1990, 2002; West & Sacramento, 2012), this study investigates the indirect effect of team participative decision making on employee creativity through individual perception of cognition team diversity and psychological safety. Results from 256 supervisor–subordinate dyads in 45 teams show that team participative decision making is positively associated with cognitive team diversity and psychological safety. For the mediating effects, team participative decision‐making climate is positively indirectly related to creative performance via psychological safety but not via cognitive team diversity. Theoretical and practical implications are discussed.     

A Commentary on 'Exploring the Nature of Human Resource Developers' Expertise"

Previous research has shown that organizational identification (OI) of leaders is positively related to employee OI and, in turn, linked to positive behaviours of employees towards the organization. In the present study, we argue that leader OI does not only affect variables at the employee level but, through its influence on employees, also contributes to important customer outcomes (i.e., customer satisfaction, customer loyalty, and customer recommendations). Drawing on self-concept based theories of leadership effectiveness and insights from service linkage research, the present article proposes that OI plays an important role in these influence processes. Additionally, the article delineates the behavioural and psychological variables that intervene employee OI and customer outcomes. More specifically, we suggest that leader OI is positively related to follower OI, which results in customer-oriented service behaviour. Customer orientation, in turn, should positively affect customers' identification with the organization and, ultimately, result in customer satisfaction, customer loyalty, and customer recommendations. Results of a multilevel field study using data from leaders, employees, and customers provide support for our theoretical model.     

The Interactive Effects of Sales Force Controls on Salespeople Behaviors and Customer Outcomes

Although studies have examined the antecedents and consequences of sales force control (SFC) systems, little research investigates how different SFC elements interact or work together to affect salespeople behaviors and customer outcomes. Drawing on a diverse literature, this study hypothesizes interactive influence of three formal control elements (i.e., output, activity, and capability) on two customer-directed sales behaviors (i.e., problem solving and opportunism), which subsequently affect customer relationship outcomes. Using data collected from matched business-to-business buyer–seller dyads in China, the authors find that output and activity controls reduce both problem solving and opportunism when used together. Output and capability controls synergistically enhance problem solving and reduce opportunism, whereas activity and capability controls interact to reduce problem solving and increase opportunism. In addition, sales behaviors have significant effects on customer relationship satisfaction, which in turn affects customer share of wallet.     

THE EFFECTS OF EMPLOYEE SATISFACTION, ORGANIZATIONAL CITIZENSHIP BEHAVIOR, AND TURNOVER ON ORGANIZATIONAL EFFECTIVENESS: A UNIT-LEVEL, LONGITUDINAL STUDY

This study addresses the issue of whether positive employee attitudes and behaviors influence business outcomes or whether positive business outcomes influence positive employee attitudes and behaviors. We hypothesize that employee satisfaction, organizational citizenship behavior, and employee turnover influence profitability and customer satisfaction. Data were gathered from the units of a regional restaurant chain via employee surveys, manager surveys, customer surveys, and organizational records. Cross-lagged regression analyses show that employee attitudes and behaviors at Time 1 are related to organizational effectiveness at Time 2. Additional cross-lagged regression analyses show no significant relationship between organizational effectiveness at Time 1 and the employee attitudes and behaviors at Time 2. These results add to the evidence that HR outcomes influence business outcomes, rather than the other way around.     

Do it right this time: the role of employee service recovery performance in customer-perceived justice and customer loyalty after service failures

Integrating justice and customer service literatures, this research examines the role of customer service employees' behaviors of handling customer complaints, or service recovery performance (SRP), in conveying a just image of service organizations and achieving desirable customer outcomes. Results from a field study and a laboratory study demonstrate that the dimensions of SRP--making an apology, problem solving, being courteous, and prompt handling--positively influenced customer satisfaction and then customer repurchase intent through the mediation of customer-perceived justice. In addition, service failure severity and repeated failures reduced the positive impact of some dimensions of SRP on customer satisfaction, and customer-perceived justice again mediated these moderated effects.     

The Role of Decision Making Styles in Explaining Happiness

In pursuit of happiness, individuals often choose activities which may be influenced by their general decision making styles that reflect habitual ways of choosing and making decisions. The present study investigated the associations of such tendencies, namely individuals’ temporal perspectives that included present and future focus, and maximizing, with persons’ orientations to happiness and their relevance for subjective well-being. The obtained results confirmed previous reports indicating the relevance of orientations to happiness for subjective well-being. With respect to the decision making styles, they revealed positive correlations with regard to future focus with orientations to meaning and engagement that were also negatively associated with present focus. In addition, present focus was positively correlated with orientation to pleasure. With respect to maximizing, this decision making style was positively associated with all three orientations. While assessing the relevance of decision making styles for subjective well-being, the regression analyses indicated that higher levels of maximizing directly predicted higher levels of negative affect and lower life satisfaction. Next, mediation and network methodologies revealed significant mediating effects of orientations to meaning and engagement with respect to the relationships between future focus with life satisfaction and positive affect, orientation to meaning with respect to the associations between present focus with life satisfaction and positive affect, and orientation to engagement with respect to the relationships between maximizing with life satisfaction and positive affect. These results extend previous knowledge, indicating the relevance of individuals’ decision making styles for their conceptualizations of happiness, as well as subjective well-being.     

A neuropsychological theory of positive affect and its influence on cognition.

Positive affect systematically influences performance on many cognitive tasks. A new neuropsychological theory is proposed that accounts for many of these effects by assuming that positive affect is associated with increased brain dopamine levels. The theory predicts or accounts for influences of positive affect on olfaction, the consolidation of long-term (i.e., episodic) memories, working memory, and creative problem solving. For example, the theory assumes that creative problem solving is improved, in part, because increased dopamine release in the anterior cingulate improves cognitive flexibility and facilitates the selection of cognitive perspective.     

TO LEAD, LAG, OR MATCH: ESTIMATING THE FINANCIAL IMPACT OF PAY LEVEL POLICIES

In this study, the Boudreau and Berger (1985a) retention/acquisition model is modified in order to develop a utility model that can be used to assess the impact of alternative pay level policies. This paper then demonstrates how the model could be used to assess the financial impact of alternative pay level policies for an organization whose current policy is to match the market. In demonstrating this, estimates of the effect of pay level on employee and applicant behaviors are presented. The utility model is then used to translate these effects into financial terms and compare them against the wage costs associated with alternative pay level policies. Finally, break-even analysis is used to suggest how decision makers might use utility results when making decisions about pay level policy. The implications for pay level policy and the role of utility analysis in compensation decision making are discussed.     

Do Satisfied Employees Satisfy Customers? Support‐Services Staff Morale and Satisfaction Among Public School Administrators,Students, and Parents

Data were obtained from school staff ( N = 1,567) who provided support services to schools in a major metropolitan school district. These data were analyzed in relation to data obtained from 3 customer groups (school administrators, students, and parents) who provided ratings of their satisfaction with services. Several aspects of employee morale (e. g., quality of supervision, teamwork, and goal clarity, along with workgroup service climate) were significantly and positively related to administrator and parent satisfaction, but not to student satisfaction. Relations of employee morale and workgroup service climate to administrator satisfaction and parent satisfaction were moderated by customer contact with employees. Results are discussed in relation to expectations of customers and employees that affect the nature of the service-exchange interaction.     

Should you Sleep on it? The Effects of Overnight Sleep on Subjective Preference‐based Choice

Conventional wisdom and studies of unconscious processing suggest that sleeping on a choice may improve decision making. Although sleep has been shown to benefit several cognitive tasks, including problem solving, its impact on everyday choices remains unclear. Here we explore the effects of ‘sleeping on it’ on preference‐based decisions among multiple options. In two studies, individuals viewed several attributes describing a set of items and were asked to select their preferred item after a 12‐hour interval that either contained sleep or was spent fully awake. After an overnight period including sleep, individuals showed increases in positive perceptions of the choice set. This finding contrasts with previous research showing that sleep selectively enhances recall for negative information. In addition, this increase in positive recall did not translate into a greater desire to purchase their preferred item or into an overall benefit for choice satisfaction. Time‐of‐day controls were used to confirm that the observed effects could not be explained by circadian influences. Thus, we show that people may feel more positive about the choice options but not more confident about the choice after ‘sleeping on’ a subjective decision. We discuss how the valence of recalled choice set information may be important in understanding the effects of sleep on multi‐attribute decision making and suggest several avenues for future research. Copyright © 2015 John Wiley & Sons, Ltd.     

Devil′s Advocacy and Dialectical Inquiry Effects on Face-to-Face and Computer-Mediated Group Decision Making

For more than 20 years, researchers have investigated the effects of cognitive conflict techniques on the decision making performance of groups and individuals. Past research on two techniques, devil′s advocacy and dialectical inquiry, has shown that both techniques improve group performance over nonconflictual, expert-based approaches. More recently, researchers have begun to investigate how advanced decision and communication technologies can be used to enhance group processing and outcomes. In this paper, we extend both streams of research by reporting the results of a laboratory experiment on the effects devil′s advocacy and dialectical inquiry within face-to-face and computer-mediated groups. The results suggest that groups given the devil′s advocacy treatment developed and considered more alternative solutions to a case problem and selected a higher quality recommendation than those in the dialectical inquiry and expert-based treatments. Computer-mediated groups developed and considered more solution alternatives but required more voting rounds to reach agreement than did face-to-face groups. Computer-mediated groups were more satisfied with the process than face-to-face groups; no differences were found in satisfaction with decision outcome. The implications of the results for future research and practice are discussed.     

Mechanisms linking employee affective delivery and customer behavioral intentions

Past empirical evidence has indicated that employee affective delivery can influence customer reactions (e.g., customer satisfaction, service quality evaluation). This study extends previous research by empirically examining mediating processes underlying the relationship between employee affective delivery and customer behavioral intentions. Data were collected from 352 employee-customer pairs in 169 retail shoe stores in Taiwan. Results showed that the influence of employee affective delivery on customers' willingness to return to the store and pass positive comments to friends was indirect through the mediating processes of customer in-store positive moods and perceived friendliness. The study also indicated that employee affective delivery influences customers' time spent in store, which, in turn, influences customer behavioral intentions.     

Investigating the Employee’s Perspective of Customer Delight

With ever-increasing expectations from customers, sales managers need to assess if trying to delight customers is a worthy pursuit. While the concept of delight has been studied from both customer and management perspectives, the employee’s perspective has not been evaluated with the same intensity. To explore this underresearched area, the authors performed critical incident studies of frontline employees (FLEs) to understand their perceptions of what it means to delight customers, and how in turn these perceptions affect psychological and behavioral states of employees. The results of this analysis revealed that employees who delighted customers experienced improved customer orientation and increased job skills. In addition, many FLEs experienced an emotional contagion of positive emotions from a customer during a delightful experience. The authors also investigated the difference between employees’ perceptions of delight and satisfaction, thereby providing a comparison of how the two levels impact employee performance.     

Identification with the retail organization and customer-perceived employee similarity: Effects on customer spending

Two constructs important to academicians and managers are the degree to which employees and customers identify with an organization, employee organizational identification (employee OI) and customer-company identification (customer identification), respectively. This research examines the effects of these identification constructs and the related construct of customer perceived similarity to employees on customer spending. Via a 1-year multilevel study of 12,047 customers and 1,464 store employees (sales associates) covering 212 stores of a specialty apparel retailer, our study contributes to the literature in 2 critical ways. First, we expand the theoretical network of employee OI and customer identification by examining the related construct of a customer's perceived similarity to store employees. We examine the incremental (not fully mediated) main and interaction effects of customer-perceived similarity to employees and employee OI on customer spending. Second, we examine the effect of customer identification on customer spending relative to the effect of customer satisfaction on customer spending. Thus, our study also contributes by demonstrating a potential complementary route to achieve customer spending (customer identification), a route that may be more readily affected by management than the efforts required for a sustained increase in customer satisfaction. Implications for academics and managers are offered. (PsycINFO Database Record (c) 2012 APA, all rights reserved).     

Is “service with a smile” enough? Authenticity of positive displays during service encounters

Service providers use impression management strategies to engender satisfaction and repeat business in customers. Managing emotional expressions is one strategy to meet those goals. We extended research on the “Duchenne Smile” to see if authenticity of employee expressions influenced the impressions formed of the employee’s friendliness and the overall satisfaction with the encounter. Furthermore, we took two other factors into account—task performance and busyness—to examine the conditions under which authenticity would have the greatest impact. In Study 1, we obtained reactions to videotaped simulations that manipulated authenticity of positive displays and task performance during a hotel check-in encounter. ANCOVA results supported that authenticity of the service provider enhanced perceptions of friendliness, but only influenced customer satisfaction when tasks were performed well. In Study 2, hierarchical linear modeling with reactions from 255 customers of 64 restaurant servers showed that perceived display authenticity enhanced the perceived friendliness of the employee when the store was slow, but less so when it was busy. Display authenticity had a direct effect on customer satisfaction, regardless of task performance (which was generally high) and busyness. We conclude that display authenticity is an extra-role behavior for service encounters with an additive effect on encounter satisfaction only when other factors are at optimal levels. We suggest implications for display rule policies and service training.     

The Role of Perceived Demographic Dissimilarity and Interaction in Customer‐Service Satisfaction1

The purpose of the current study was to examine the influence of perceived demographic dissimilarity and interaction on customer‐service satisfaction. Data were collected from 301 spectators at a professional men's tennis tournament. Results indicate that perceived demographic dissimilarity was negatively associated with customer service satisfaction. Further, this relationship was moderated by the amount of interaction between the employee and customer, such that the negative relationship was strongest when interaction was high. Results are discussed in terms of the theoretical implications related to relational demography and practical implications in terms of the “business case” for diversity.     

Be mindful in love: Exploring the interpersonal effects of spouse mindfulness on employee work and family outcomes

Mindfulness has received increasing attention from scholars and practitioners, and considerable research has demonstrated the intrapersonal effects of mindfulness at work or at home. Research to date, however, has overlooked potential interpersonal effects of mindfulness across the work and family domains. Drawing on the spillover-crossover model and the mindfulness literature, we investigate the effects of spouse mindfulness at home on employee work and family outcomes. We test our model using dyadic experience-sampling data collected from 125 focal employees and their spouses over 10 consecutive workdays. The results indicated that, at the within-person level, spouse mindfulness at home was positively associated with employee authentic emotional sharing at home, which, in turn, was positively associated with employee positive effect at home but negatively associated with employee negative affect at home. The results also indicated that spouse mindfulness at home had a positive indirect effect on family satisfaction at home and work engagement during the next morning through enhancing employee authentic emotional sharing at home. We discuss the implications of these findings and directions for the mindfulness research.     

Test of a service profit chain model in the retail banking sector

Research has shown that organizational subunits where employee perceptions are favourable enjoy superior business performance. The service profit chain model of business performance ( Heskett, Sasser, & Schlesinger, 1997 ) has identified customer satisfaction as a critical intervening variable in this relationship. This paper examines the relationships between organizational climate, employee attitudes, customer satisfaction, and sales performance in the retail‐banking sector. The role of customer satisfaction as a mediator between employee attitudes and sales performance is examined in a large sample of bank branches, spanning multiple organizations. Mediation effects are found, which border on significance when the sample size is large, but the effects seem to be too small to be of practical importance. It is argued that alternative formulations of the service profit chain model may provide more powerful explanations of the link between employee attitudes and business performance.     

Is the Customer Always Right? The Potential for Racial Bias in Customer Evaluations of Employee Performance

With the encouragement of marketing scholars, many companies are tying employee incentives to customer ratings of satisfaction, service quality, or employee performance. One potential drawback to these practices is that customers' evaluations of employees—and, therefore, any associated rewards—may be biased by employee race. This possibility was examined in a restaurant setting. We found that customers rated the promptness and attentiveness of same race servers more favorably than different race servers, but there were no differences for assessments of server friendliness or appearance. The theoretical and practical implications of these findings are discussed.