Do salespeople matter in competitive tenders?

Abstract

Organizational buyers are increasingly employing competitive tenders with objective buying criteria to mitigate the influence of personal relationships with suppliers and reduce the overall cost of buying. This paper investigates the role of salespeople’s relationships with buyers (i.e., purchasing managers) and how they affect supplier selection in such contexts. Drawing on data from 428 tenders across different buying organizations, this study shows that the quality of the salesperson’s relationship with the buyer influences the buyer’s evaluation of the tender proposal, which, in turn, affects supplier selection. Thus, the results support an indirect effect of salesperson relationship on supplier selection even in a tender context. In addition, the results indicate that the effect of a salesperson’s relationship on buyer’s proposal evaluation is contingent on the comprehensibility of suppliers’ proposals and buyer’s product knowledge. These results have significant theoretical and managerial implications for both buyers and suppliers in business-to-business (B2B) tender contexts.     

Assessments of equivocal salesperson behavior and their influences on the quality of buyer-seller relationships

Abstract

In buyer-supplier relationships, salespeople engage in behaviors that buyers may (or may not) view as deceptive. Despite the salesperson’s underlying miscreant or innocent motives, buyers have a difficult time attributing the intentionality of salesperson behaviors after the fact. While extant research has explicated various governance mechanisms to mitigate the occurrence of opportunistic behaviors a priori, scholarship is not as well-versed in understanding (a) the relational factors that influence the buyer’s interpretation of debatably opportunistic salesperson behaviors and (b) the buyer’s retributive response within the ongoing relationship. To bring clarity to these issues, the authors examine relationship factors that influence the likelihood of perceived salesperson opportunism following equivocal salesperson acts. Utilizing data from industrial buyers in the U.S. healthcare industry, this study shows that buyer specific investments are related positively to attributions of salesperson guile, whereas contractual agreements are related negatively to attributions of guile. Relationship solidarity moderates these effects. Further, we find that attributions of salesperson guile lead to perceived salesperson opportunism, which in turn results in buyers lowering their expectations of relationship continuity and increasing their retributive responses. We corroborate these findings with cross-sectional survey data from a sample of industrial buyers. Collectively, these findings hold implications with regard to the role of the buyer’s attribution of salesperson guile for a specific behavior as a determinant of perceived opportunism in general, while also outlining conditions under which buyers are inclined to engage in retributive opportunism.     

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.     

A Test of a Model of New Salespeople’S Socialization and Adjustment in a Collectivist Culture

Drawing largely on organizational socialization theory and its derivations, such as uncertainty reduction and sense-making theory, the authors propose and test empirically a process model of newcomer salesperson socialization in the South Korean context. The results indicate that both organization-initiated and newcomers’ proactive socialization tactics (i.e., seeking performance feedback and information seeking, building relationships and networks) significantly influence newcomers’ perceived level of accommodation (i.e., role clarity and social integration) and thus their adjustment to the new work environment (i.e., level of organizational commitment, job performance, and job satisfaction). The authors discuss the theoretical and managerial implications and present future research directions.     

(Re) defining salesperson motivation: current status,main challenges,and research directions

The construct of motivation is one of the central themes in selling and sales management research. Yet, to-date no review article exists that surveys the construct (both from an extrinsic and intrinsic motivation context), critically evaluates its current status, examines various key challenges apparent from the extant research, and suggests new research opportunities based on a thorough review of past work. The authors explore how motivation is defined, major theories underpinning motivation, how motivation has historically been measured, and key methodologies used over time. In addition, attention is given to principal drivers and outcomes of salesperson motivation. A summarizing appendix of key articles in salesperson motivation is provided.     

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.     

Salesperson Listening in the Extended Sales Relationship: An Exploration of Cognitive,Affective, and Temporal Dimensions

This paper reports the findings of an exploratory study of salesperson listening in the context of an extended sales relationship. In-depth interviews with both buyers and sellers suggest that listening has both cognitive and affective characteristics. Moreover, the data indicate a temporal dimension of listening, not addressed in current models of listening in the sales literature. Further, there appears to be a link between the salesperson’s listening and the impressions of affective and cognitive empathy created and maintained over the course of sales interactions with customers. The impressions of affective and cognitive empathy created may affect the development of buyer–seller relationships.     

Fabrication Puts Suspects at Risk: Blindness to Changes in Transgression‐related Statements

Based on the finding that deceptive and misleading interrogation techniques are not uncommon, we investigated to what extent participants may be blind to alterations introduced to their accounts of past transgressions. Drawing from the source‐monitoring framework, we hypothesized that participants' truthfulness and whether they had committed a transgression in the past (transgression history) would be predictive of blindness. When filling out a questionnaire about their past transgressions, 80 participants fabricated some of their answers. Prior to an interview 1 week later, two previously fabricated and two truthful answers were covertly altered by the experimenter. We found substantial blindness rates, and, as hypothesized, blindness was more pronounced for (1) fabricated than truthful responses and (2) alterations with transgression history compared with no transgression history. Possible consequences may include the creation of guilt presumption and increasing pressure to obtain a confession. Both can be hazardous for suspects and the legal decision‐making process. Copyright © 2015 John Wiley & Sons, Ltd.     

Ideal Versus Actual Number of Sales Calls: An Application of Disconfirmation Theory

The current study focuses on the relationship that buyers have with their salespeople. Specifically, the study uses disconfirmation theory to evaluate whether a salesperson that meets or exceeds the buyer’s ideal number of sales calls has higher levels of commitment, trust, and satisfaction from the buyer than a salesperson that does not meet expectations. The study also looks at the impact of meeting expectations on the buyer’s evaluation of the salesperson’s commitment and performance versus a salesperson that does not meet expectations. Findings suggest that when a salesperson contacts a buyer with a frequency and consistency that the buyer perceives as ideal, the buyer will have a higher level of satisfaction with and trust of the salesperson as well as a higher level of commitment to the buyer–seller relationship. Managers could take advantage of this by making an effort to align a salesperson’s call frequency with what a buyer perceives as ideal.     

Age differences in forgivingness: The role of transgression frequency and intensity

The present study examined age differences in the disposition to forgive others and the role of interpersonal transgression frequency and intensity. Data from a representative cross-sectional sample of Swiss adults (N = 451, age: 20–83 years) were used. Participants completed a self-report measure of forgivingness and indicated whether and how intense they have experienced different types of interpersonal transgressions during the past 12 months. Results indicate that older adults were, on average, more willing to forgive others than younger adults. Frequency and intensity of transgressions were negatively related with age. Moreover, the results show that transgression frequency and intensity explained, in part, age differences in forgivingness. Future directions concerning the meaning of age differences in forgivingness are discussed.     

A qualitative study of leader behaviors perceived to enable salesperson performance

Abstract

This study builds on and extends previous sales leadership research by exploring sales professionals’ perceptions of effective leadership behaviors. Semistructured interviews with both sales leaders and salespeople working in a global enterprise software company were examined through a qualitative analysis. Results indicated that participants believed sales leadership played an important role in influencing sales performance. When asked to describe specific sales leader behaviors that best enable salesperson performance, sales professionals – both sales leaders and salespeople – overwhelmingly referenced coaching, followed by collaborating, championing, and customer engaging. We define and describe these four key sales leader behaviors and identify four potential mediating variables (trust, confidence, optimism, and resilience), from which emerges a conceptual framework of sales leader behaviors perceived to enable salesperson performance. We examine these four key sales leader behaviors and mediators in the broader context of leadership theory, particularly transformational, servant, authentic, and adaptive leadership theories. The key contribution of this study is the identification of a set of leader behaviors that are likely to be especially effective in modern sales organizations given that they originated from the perceptions of sales professionals themselves.     

The role of lay beliefs about group transgressions in acceptance of responsibility for ingroup harm-doing

Denial of responsibility by perpetrator groups is the most common response to group-based transgressions. Refusal to acknowledge responsibility has dire consequences for intergroup relations. In this research we assessed whether shifting lay beliefs about group-based transgressions in general influences acceptance of responsibility for a specific ingroup transgression. In two experimental studies we manipulated lay beliefs about group transgressions as reflecting either a group's stable character (i.e., a global defect construal) or a specific characteristic (i.e., a specific defect construal). Specific defect construals (compared to global defect construals) increased acceptance of ingroup responsibility by increasing group malleability beliefs, but reduced acceptance of ingroup responsibility by reducing the ingroup's perceived moral failure. These effects were moderated by ingroup superiority in Study 1, but not Study 2. We draw implications for our understanding of mechanisms of denial of responsibility, identity threat, and coping with this threat.     

I need to be your only friend: the effect of salesperson network centrality on opportunistic behavior

Transaction cost economics can be used to detect opportunistic behavior by one or more actors within a sales network. Using a sample of firms in the medical industry, where the role of salespeople is important, this study examines network centrality as a determinant of a salesperson’s opportunistic behavior in intrafirm relationships. The results indicate that opportunistic behavior is affected differently depending on a salesperson’s relational and positional centralities. While relational centrality decreases opportunistic behavior by providing motivation to protect one’s reputation, positional centrality negatively moderates the effect of relational centrality on opportunistic behavior. However, with a high relational centrality, a salesperson is less likely to be opportunistic when she or he is low in positional centrality than when her or his positional centrality is high.     

Three Rs of Interpersonal Consumer Guilt: Relationship,Reciprocity, Reparation

This article explores the role of consumer guilt in a retail context. The results of a field study indicate that a consumer's lack of purchase can lead to a guilt response when social connectedness with a salesperson exists and the consumer perceives he or she has control over the purchase decision. A subsequent laboratory study established that when consumers experience guilt, they intend to pursue reparative actions during future purchase interactions with the salesperson to reciprocate the initial connection they established. This reparation is directed specifically toward the salesperson and not the firm.     

The Effects of Social Motivational Training Following Perceived and Actual Interpersonal Offenses at Work1

This research was designed to examine the effects of social motivational training (SMT) on coworker interactions following perceived and actual workplace transgressions. Study 1 participants were assigned to an SMT condition or a control condition (Job Satisfaction Training; JST). Their responses to a scenario‐based transgression were measured before and immediately after training. Study 2 examined the effects of multiple exposure of SMT 1 week after initial training. In Study 3, workers recounted a negative event at work, received SMT or JST, and an actual behavior was assessed. Study 4 involved face‐to‐face intervention. After recounting the negative event, participants were given one‐on‐one SMT or JST. Results indicate that SMT facilitated a prosocial motivational profile immediately after and 1 week following training.     

Selling in an asymmetric retail world: perspectives from India,Russia, and the US on buyer–seller information differential,perceived adaptive selling,and purchase intention

The current research aimed to contribute to our understanding of (a) how adaptive selling is perceived by retail consumers in different types of economies when they have differing levels of buyer–seller information differential and (b) how this phenomenon influences their purchase intention. The focal countries were the US (a developed economy) and India and Russia (both developing economies). These three were selected owing to their disparate economic and cultural contexts. This investigation used a relatively new construct: perceived adaptive selling (PAS). PAS refers to the degree to which the buyer perceives that the salesperson is adapting. The study examined whether the impact of PAS was a function of a country’s level of development and whether such perceptions were influenced by the level of buyer–seller information differential in the retail transaction. The findings suggested that buyers in Russia and India PAS and were influenced by it differently from their US counterparts. This work provided a general framework for understanding tactical implementation of the salesperson’s PAS behavior.     

Rumination, fear, and cortisol: an in vivo study of interpersonal transgressions.

The authors sought to examine whether rumination about psychologically painful, though nontraumatic, interpersonal transgressions is associated with increased salivary cortisol. They measured salivary cortisol, rumination about a transgression, fear and anger regarding the transgressor, perceived painfulness of the transgression, and positive and negative mood in 115 undergraduates who had experienced an interpersonal transgression during the previous 7 days. They obtained measurements on as many as 5 occasions separated by approximately 14 days each. On occasions when participants reported that they had been ruminating to a degree that was greater than was typical for them, they had higher levels of salivary cortisol than was typical for them. The rumination- cortisol association appeared to be mediated by fear of the transgressor. Rumination about even moderately painful but nontraumatic life events and associated emotions are related to biological changes that may subserve social goals such as avoiding social threats. Items from the rumination scale are appended.     

An investigation of salespeople’s nonverbal behaviors and their effect on charismatic appearance and favorable consumer responses

The concept of charisma has gained considerable interest among social scientists in multiple disciplines. Nevertheless, research on charisma in the marketing field is scarce, and little is known about which specific nonverbal behaviors predict perceived charisma and lead to positive consumer responses. Therefore, the aim of this article is to identify nonverbal behaviors that lead to a salesperson’s perceived charisma in a personal selling context by means of high-precision, time-locked coding. This research explores aspects of body language that differentiate salespeople from each other and investigates whether such differences are antecedents of perceived charisma. The findings indicate that certain arm actions, arm postures, and action functions have a significant effect on charismatic appearance and can in turn produce favorable attitudes toward the salesperson.     

Examining the impact of salesperson interpersonal mentalizing skills on performance: the role of attachment anxiety and subjective happiness

Due to the dynamic and interpersonal nature of selling, understanding affective and cognitive relationships and their influence on performance has gained the attention of sales scholars. Moreover, recent literature has created opportunities to study the impact of cognitions, such as salesperson theory-of-mind, on sales performance. This research develops a model involving salesperson interpersonal mentalizing skills (i.e. rapport building, detecting nonverbal cues, taking a bird’s-eye view, shaping the interactions), subjective happiness, attachment anxiety, and sales performance. Although salesforce optimization is critical in any economy, emerging economies are the growth frontier for many global companies. Using three samples from Brazil, we investigate the telecom, banking, and retail industries, providing generalizable results from one such emerging economy. We find that, in general, it is the influence of attachment anxiety and subjective happiness on interpersonal mentalizing skills which ultimately impacts sales performance. Based on these findings, we discuss several theoretical and managerial implications.