Moral Judgment and its Impact on Business-to-Business Sales Performance and Customer Relationships

2010 ◽  
Vol 98 (4) ◽  
pp. 609-625 ◽  
Author(s):  
Charles H. Schwepker ◽  
David J. Good
Keyword(s):  
Moral Judgment ◽  
Sales Performance ◽  
Customer Relationships ◽  
Business To Business

scholarly journals Managing Business-to-Business Customer Relationships following Key Contact Employee Turnover in a Vendor Firm

2002 ◽  
Vol 66 (2) ◽  
pp. 83-101 ◽  
Author(s):  
Neeli Bendapudi ◽  
Robert P. Leone
Keyword(s):  
Cross Section ◽  
Employee Turnover ◽  
Customer Relationships ◽  
Broad Cross Section ◽  
Business Customers ◽  
Business To Business ◽  
Oriented Approach

Customers form relationships with the employees who serve them as well as with the vendor firms these employees represent. In many cases, a customer's relationship with an employee who is closest to them, a key contact employee, may be stronger than the customer's relationship with the vendor firm. If the key contact employee is no longer available to serve that customer, the vendor firm's relationship with the customer may become vulnerable. In this article, the authors present the results of two studies that examine what business-to-business customers value in their relationships with key contact employees, what customers' concerns are when a favored key contact employee is no longer available to serve them, and what vendor firms can do to alleviate these concerns and to retain employee knowledge even if they cannot retain the employee in that position. The studies are based on a discovery-oriented approach and integrate input from business-to-business customers, key contact employees, and managers from a broad cross-section of companies to develop testable propositions. The authors discuss managerial and theoretical implications and directions for further research.

scholarly journals When Salespeople Manage Customer Relationships: Multidimensional Incentives and Private Information

2019 ◽  
Vol 56 (5) ◽  
pp. 749-766 ◽  
Author(s):  
Minkyung Kim ◽  
K. Sudhir ◽  
Kosuke Uetake ◽  
Rodrigo Canales
Keyword(s):  
Moral Hazard ◽  
Adverse Selection ◽  
Customer Relationship Management ◽  
Private Information ◽  
Information Acquisition ◽  
Relationship Management ◽  
Selection Effect ◽  
Sales Performance ◽  
Customer Relationships ◽  
Customer Relationship

At many firms, incentivized salespeople with private information about customers are responsible for customer relationship management. Although incentives motivate sales performance, private information can induce moral hazard by salespeople to gain compensation at the expense of the firm. The authors investigate the sales performance–moral hazard trade-off in response to multidimensional performance (acquisition and maintenance) incentives in the presence of private information. Using unique panel data on customer loan acquisition and repayments linked to salespeople from a microfinance bank, the authors detect evidence of salesperson private information. Acquisition incentives induce salesperson moral hazard, leading to adverse customer selection, but maintenance incentives moderate it as salespeople recognize the negative effects of acquiring low-quality customers on future payoffs. Critically, without the moderating effect of maintenance incentives, the adverse selection effect of acquisition incentives overwhelms the sales-enhancing effects, clarifying the importance of multidimensional incentives for customer relationship management. Reducing private information (through job transfers) hurts customer maintenance but has greater impact on productivity by moderating adverse selection at acquisition. This article also contributes to the recent literature on detecting and disentangling customer adverse selection and customer moral hazard (defaults) with a new identification strategy that exploits the time-varying effects of salesperson incentives.

scholarly journals Within-Seller and Buyer–Seller Network Structures and Key Account Profitability

2018 ◽  
Vol 83 (1) ◽  
pp. 108-132 ◽  
Author(s):  
Aditya Gupta ◽  
Alok Kumar ◽  
Rajdeep Grewal ◽  
Gary L. Lilien
Keyword(s):  
Customer Relationships ◽  
Network Density ◽  
Similar Function ◽  
Team Members ◽  
Account Management ◽  
Complementary Role ◽  
Key Account ◽  
Interfirm Network ◽  
Using Data ◽  
Business To Business

In business-to-business (B2B) markets, the success of key account management (KAM) teams depends on how they are structured and how they handle customer relationships. The authors conceptualize relationships among selling team members as a within-seller (intrafirm) network and the relationships between selling team members and buyer representatives as a buyer–seller (interfirm) network. Drawing on both structural (buyer–seller density, within-seller density, and within-seller centralization) and functional (buyer–seller similar function ties and within-seller cross-functional ties) composition attributes of these networks, the authors examine how the interplay between these networks drives seller account profitability. Using data from 207 key account managers across B2B industries, the authors uncover a nuanced pattern of interplay across the two networks. Densities in the two networks are mutually substitutive, but density in the buyer–seller networks and centralization in the within-seller networks serve complementary roles. Cross-function ties in the within-seller network serve a complementary role too, but only in relation to similar function ties in the buyer–seller network. In contrast, within-seller centralization supports both network density and similar function ties in the buyer–seller network and, thus, emerges as a valuable KAM team characteristic. These findings suggest multiple ways for firms to align interfirm and intrafirm KAM networks to improve account profitability.

scholarly journals Social and technical chains-of-effects in business-to-business (B2B) service relationships

2020 ◽  
Vol 54 (6) ◽  
pp. 1225-1246 ◽  
Author(s):  
Russel P.J. Kingshott ◽  
Piyush Sharma ◽  
Smitha Ravindranathan Nair
Keyword(s):  
Social Exchange ◽  
Customer Loyalty ◽  
Online Survey ◽  
Customer Relationships ◽  
Service Firms ◽  
Content Type ◽  
Online Platforms ◽  
Service Relationships ◽  
The Social ◽  
Business To Business

Purpose This paper aims to combine the social–technical systems and social exchange theories with the resource-based view of the firm, to investigate how business-to-business (B2B) service firms manage their social and technical resources to manage customer relationships. Design/methodology/approach An online survey-based study with 321 managers working in Australian small and medium (SME) firms is used to test hypotheses about the sequential and substitutional impact of four social and technical resources (service quality, satisfaction, trust and commitment) on customer loyalty, using both offline and online platforms. Findings The findings show that both social and technical chains of effects are viable channels for B2B service firms to build customer loyalty; however, mixing of both social and technical resources results in the weakening of both these chains. Research limitations/implications The results based on B2B service relationships between Australian SME firms and their banks may not be generalizable to other contexts. Practical implications This research would help managers in B2B service firms understand the pitfalls of combining their social and technical resources because it may hamper their ability to build customer loyalty. Hence, they need to learn how to synergize their marketing resources across both offline and online platforms to achieve optimal results. Originality/value This research introduces social and technical chains of effects as a novel way to examine the ability of B2B service firms to optimize their social and technical resources in a synergistic manner to build and nurture stronger customer relationships.

Expanding Business-to-Business Customer Relationships: Modeling the Customer's Upgrade Decision

2008 ◽  
Vol 72 (1) ◽  
pp. 46-64 ◽  
Author(s):  
Ruth N. Bolton ◽  
Katherine N. Lemon ◽  
Peter C. Verhoef
Keyword(s):  
Customer Relationships ◽  
Business To Business

Elucidating salespeople's market orientation, proactive service behavior and organizational culture in the B2B banking sector: a Malaysian perspective

2020 ◽  
Vol 38 (5) ◽  
pp. 1033-1057 ◽  
Author(s):  
Muhammad Iskandar Hamzah ◽  
Abdul Kadir Othman ◽  
Faridah Hassan
Keyword(s):  
Organizational Culture ◽  
Market Orientation ◽  
Information Dissemination ◽  
Cognitive Theory ◽  
Sales Performance ◽  
Content Type ◽  
Individual Market ◽  
Service Behavior ◽  
The Impact ◽  
Business To Business

PurposeConsidering that little is known on market orientation at the individual level, this study investigates the effects of individual market orientation on proactive service behavior, and subsequently, sales performance among business-to-business salespeople. Based on social cognitive theory and competing values framework, this paper also examines the interaction effects of organizational culture on the link between individual market orientation and proactive service behavior.Design/methodology/approachThe study sampled 539 business-to-business salespeople from 18 corporate banks in Kuala Lumpur by using a questionnaire survey.FindingsThe results of the study show that adhocracy culture strengthens the effects of information acquisition on proactive service behavior, while at the same time weakens the impact of coordination of strategic response on the same outcome. Meanwhile, rational culture displayed negative contingent effects of information dissemination on proactive service behavior.Practical implicationsGiven its link to sales performance and proactive service behavior, banks should motivate their employees to embrace market orientation as individual competencies. This research outcome will aid managers in developing strategies and inculcating the right culture to ensure the market-oriented behaviors are internalized and transpired into positive outcomes.Originality/valueThis paper contributes to the enrichment of the existing market orientation frameworks by offering underlying mechanisms (cultural environment and proactive service behavior) through which market-oriented behaviors contribute to the sales performance of business-to-business salespeople within the financial service industry. It is also among the earliest studies that examine the influence of individual market orientation and organizational culture on proactive service behavior.

Developing proactive salespeople – a study and recommendations for sales management

2016 ◽  
Vol 30 (4) ◽  
pp. 9-12
Author(s):  
Michael L. Mallin
Keyword(s):  
Sales Management ◽  
Role Playing ◽  
Sales Performance ◽  
Customer Relationships ◽  
Proactive Behavior ◽  
Sales Managers ◽  
Organizational Strategies ◽  
Content Type ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is twofold. First, it provides the results of a study of key characteristics of proactive salespeople and the impact of salesperson proactive behavior on selling performance. Second, it provides recommendations for sales management to implement organizational strategies designed to develop, train and coach salespeople to be more proactive. Design/methodology/approach In all, 278 business-to-business salespeople were surveyed to identify key traits and outcomes of proactive salespeople. The average subject was 28 years of age with 5 years of selling experience. Scales from the management, organizational behavior and sales performance literature were used to identify the degree that subjects engaged in proactive behavior in their selling role, a self-assessment of their sales performance and individual traits thought to predict higher levels of proactive behavior. Findings The findings revealed that proactive salespeople exhibited high levels of selling behavior performance – an important contributor to measurable selling results. In addition, proactive salespeople were intrinsically motivated, confident in the tasks of selling and willing to take calculated risks. Practical implications Practical implications suggest that sales managers can play a key role in fostering proactive behavior among salespeople through development, training and coaching. First, sales managers can play a role in the development of salesperson intrinsic motivation by stressing the importance of asking good questions to understand their customer’s problems to the extent that they can be proactive and recommend solutions for change. Second, training programs to make salespeople more confident should center on fully understanding product/service functionality and applications to typical customer problems. Finally, coaching tools such as win–loss reviews, post-call analysis/feedback and role-playing are useful mechanisms to reinforce the right type of risk-taking selling behavior decisions. Originality/value The value of this research is to shed light on the importance of salesperson proactive behavior as a means to drive selling organizational performance and fostering long-term customer relationships. Understanding the drivers of proactivity among salespeople is the first step for sales management to be able to operationalize organizational strategies to develop, train and coach salespeople to be more proactive in their selling approach.

The use of social media among business-to-business sales professionals in China

2016 ◽  
Vol 10 (1) ◽  
pp. 33-49 ◽  
Author(s):  
Keith E. Niedermeier ◽  
Emily Wang ◽  
Xiaohan Zhang
Keyword(s):  
Social Media ◽  
Sales Performance ◽  
Content Type ◽  
Sales Professionals ◽  
Sales Process ◽  
Successful Business ◽  
Use Of Social Media ◽  
Survey Responses ◽  
Business To Business

Purpose – The purpose of this study is to explore the role of social media usage among business-to-business sales professionals in China. Specifically, the authors seek to define and explore the unique ways in which Chinese salespeople use social media, with a special emphasis on the role of guanxi. Guanxi is a complex cultural construct that revolves around the exchange of favors to build trust and connection for business purposes. Design/methodology/approach – Three in-depth interviews of sales managers from two industries along with survey data from 42 pharmaceutical sales representatives were collected to gain an understanding of the general usage and attitudes toward social media in the sales process in China. Findings – Results indicated that virtually all the salespeople in the sample were highly familiar with social media and integrated it into the sales process. Furthermore, all participants indicated that their companies were highly supportive of the use of social media with their customers. More importantly, salespeople in China view social media as a critical tool in building guanxi with their customers. Findings from this exploratory study are used to create a conceptual framework for understanding the important role of social media in building guanxi in China. Research limitations/implications – While the sample is limited to three managerial interviews and 42 survey responses, the data indicated a near universal acceptance and use of social media among Chinese salespeople. Most importantly, social media appears to be the modern gateway to the ancient and culturally unique construct of guanxi that is absolutely indispensable to successful business-to-business sales performance in China. Practical implications – The structural challenges within China make trust and emotional connection essential to any potential business relationship. Trust is at the core of guanxi. Any firm hoping to succeed in China must understand guanxi and the use of Chinese social media to help build it. This study adds to the knowledge and understanding of guanxi and begins to elucidate the uses of social media as a tool to build and maintain it. Social implications – Social media appears to be the modern gateway to the ancient and culturally unique construct of guanxi that is absolutely indispensable to successful business-to-business sales performance in China. This study deepens our understanding of not only guanxi but also how the modern phenomenon of social media is affecting it. Originality/value – This is one of very few studies to investigate the use of social media among salesforces in China. More importantly, the authors know of no other study linking social media with guanxi.

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