This document discusses a study that investigates how general mental ability (GMA) interacts with other skills and capabilities like social competence and thinking styles to impact sales performance. The study finds that GMA alone does not predict sales performance, but it does when combined with other factors. Specifically, high GMA leads to the highest sales performance when combined with high social competence, but the lowest performance when combined with low social competence. High GMA also interacts with judicial thinking styles to positively impact sales performance. The study suggests sales success requires both cognitive abilities (GMA) and their application through social skills and thinking styles.
Why knowledge brokers are ready for shaping sales | Professional CapitalProfessional Capital
This document discusses a study that examines the link between salespersons' genetic makeup and their engagement in internal knowledge brokering behavior, which involves transferring knowledge between colleagues within a company. The study develops a scale to measure internal knowledge brokering behavior related to new product selling. It hypothesizes and tests the relationship between two specific genetic variants (DRD2 A1 and DRD4 7R+) known to affect dopamine levels and a salesperson's willingness to engage in internal knowledge brokering. The results show the DRD2 A1 variant is associated with lower levels of internal knowledge brokering behavior, which indirectly impacts new product selling success. The findings provide insights into how genetic factors may influence salespersons' strategies
How star performers manage the sales call anxiety | Professional CapitalProfessional Capital
This document summarizes a study that examines sales call anxiety (SCA), which is defined as an irrepressible fear of being negatively evaluated and rejected by a customer. The study develops and tests a conceptual model of SCA based on cognitive theories of social anxiety. It finds that SCA consists of four components: negative self-evaluations, negative evaluations from customers, awareness of physiological symptoms, and protective actions. The study shows these dimensions are influenced by negative affectivity and anxiety-provoking cues and negatively impact sales performance. The goal is to better understand SCA to help salespeople and managers control it to improve performance.
Personality characteristics that predict effective performance of sales peopl...Professional Capital
This study examines personality traits that predict effective sales performance. The researchers administered personality tests to salespeople categorized as either effective or ineffective by their managers. Based on a theoretical framework that views sales conversations as complex, self-organizing systems, the researchers hypothesized that effective salespeople would score higher on tests measuring self-monitoring, interpersonal control, personal efficacy, ability to elicit information (openers), adaptation, and lower on rigidity. Statistical analysis found effective salespeople scored significantly higher on self-monitoring, ability to elicit information, and adaptation. This provides evidence that these personality traits are good predictors of sales performance.
This document summarizes a meta-analysis of research on drivers of sales performance published between 1982-2008. The analysis refined an existing classification scheme for sales performance determinants into six categories (role perceptions, aptitude, skill level, motivation, personal factors, organizational/environmental) with multiple sub-categories. The meta-analysis found five sub-categories had significant relationships with sales performance: selling-related knowledge, degree of adaptiveness, role ambiguity, cognitive aptitude, and work engagement. Additionally, the relationships between determinants and sales performance were moderated by measurement method, research context, and sales type variables. The results suggest as the economy moves toward knowledge-intensive, salespeople may function more as knowledge brokers,
The role of emotional wisdom in salespersons relationships with colleagues an...Professional Capital
This document discusses the concept of emotional wisdom (EW) and its importance for salespeople in their relationships with colleagues and customers. It defines EW as the ability to regulate one's emotions in a way that balances both one's own interests and the interests of others. The document outlines seven dimensions of EW, including empathy and the ability to use emotions strategically while still feeling authentic. It presents research showing salespeople higher in EW cope better socially and have better relationships than those lower in EW.
Attachment Styles and Sales Persons Behavior by Prof Willem VerbekeProfessional Capital
Attachment Styles and Sales Persons Behavior by Prof Willem Verbeke. The article seeks to understand the biological process - hard-wired neurological and endrocine processes conserved over millions of years in different spieces - that might help us to understand how people operate in organisations, particular those who work with others outside the organisation like clients and customers.
How successful sales people read the minds of customers | Professional CapitalProfessional Capital
The article aims to develop a new scale to measure salespeople's interpersonal mentalizing skills, which is their ability to understand customers' intentions and perspectives. It describes 4 studies: 1) identifies skills related to interpersonal mentalizing; 2) relates the new scale to performance; 3) tests convergent and discriminant validity; 4) uses fMRI to identify brain areas involved and validate the scale at a neural level by comparing high and low scorers. The study aims to provide insights into salesperson effectiveness by drawing on research in neuroscience.
How successful sales professional manage their emotions | Professional CapitalProfessional Capital
This document explores the concept of emotional competence among salespeople. It defines emotional competence as the integration of seven proficiencies: perspective taking, strategic self-presentation, convincing others of genuine emotions, lack of guilt in strategic emotions, fostering authenticity, developing an ironic perspective, and incorporating moral codes into emotion regulation. A cluster analysis of 220 salespeople identified four groups with different patterns of competence. One group scored high on all proficiencies and effectively coped with emotions, achieved social capital, and performed well. The study aims to operationalize and test the concept of emotional competence in a work domain.
Why knowledge brokers are ready for shaping sales | Professional CapitalProfessional Capital
This document discusses a study that examines the link between salespersons' genetic makeup and their engagement in internal knowledge brokering behavior, which involves transferring knowledge between colleagues within a company. The study develops a scale to measure internal knowledge brokering behavior related to new product selling. It hypothesizes and tests the relationship between two specific genetic variants (DRD2 A1 and DRD4 7R+) known to affect dopamine levels and a salesperson's willingness to engage in internal knowledge brokering. The results show the DRD2 A1 variant is associated with lower levels of internal knowledge brokering behavior, which indirectly impacts new product selling success. The findings provide insights into how genetic factors may influence salespersons' strategies
How star performers manage the sales call anxiety | Professional CapitalProfessional Capital
This document summarizes a study that examines sales call anxiety (SCA), which is defined as an irrepressible fear of being negatively evaluated and rejected by a customer. The study develops and tests a conceptual model of SCA based on cognitive theories of social anxiety. It finds that SCA consists of four components: negative self-evaluations, negative evaluations from customers, awareness of physiological symptoms, and protective actions. The study shows these dimensions are influenced by negative affectivity and anxiety-provoking cues and negatively impact sales performance. The goal is to better understand SCA to help salespeople and managers control it to improve performance.
Personality characteristics that predict effective performance of sales peopl...Professional Capital
This study examines personality traits that predict effective sales performance. The researchers administered personality tests to salespeople categorized as either effective or ineffective by their managers. Based on a theoretical framework that views sales conversations as complex, self-organizing systems, the researchers hypothesized that effective salespeople would score higher on tests measuring self-monitoring, interpersonal control, personal efficacy, ability to elicit information (openers), adaptation, and lower on rigidity. Statistical analysis found effective salespeople scored significantly higher on self-monitoring, ability to elicit information, and adaptation. This provides evidence that these personality traits are good predictors of sales performance.
This document summarizes a meta-analysis of research on drivers of sales performance published between 1982-2008. The analysis refined an existing classification scheme for sales performance determinants into six categories (role perceptions, aptitude, skill level, motivation, personal factors, organizational/environmental) with multiple sub-categories. The meta-analysis found five sub-categories had significant relationships with sales performance: selling-related knowledge, degree of adaptiveness, role ambiguity, cognitive aptitude, and work engagement. Additionally, the relationships between determinants and sales performance were moderated by measurement method, research context, and sales type variables. The results suggest as the economy moves toward knowledge-intensive, salespeople may function more as knowledge brokers,
The role of emotional wisdom in salespersons relationships with colleagues an...Professional Capital
This document discusses the concept of emotional wisdom (EW) and its importance for salespeople in their relationships with colleagues and customers. It defines EW as the ability to regulate one's emotions in a way that balances both one's own interests and the interests of others. The document outlines seven dimensions of EW, including empathy and the ability to use emotions strategically while still feeling authentic. It presents research showing salespeople higher in EW cope better socially and have better relationships than those lower in EW.
Attachment Styles and Sales Persons Behavior by Prof Willem VerbekeProfessional Capital
Attachment Styles and Sales Persons Behavior by Prof Willem Verbeke. The article seeks to understand the biological process - hard-wired neurological and endrocine processes conserved over millions of years in different spieces - that might help us to understand how people operate in organisations, particular those who work with others outside the organisation like clients and customers.
How successful sales people read the minds of customers | Professional CapitalProfessional Capital
The article aims to develop a new scale to measure salespeople's interpersonal mentalizing skills, which is their ability to understand customers' intentions and perspectives. It describes 4 studies: 1) identifies skills related to interpersonal mentalizing; 2) relates the new scale to performance; 3) tests convergent and discriminant validity; 4) uses fMRI to identify brain areas involved and validate the scale at a neural level by comparing high and low scorers. The study aims to provide insights into salesperson effectiveness by drawing on research in neuroscience.
How successful sales professional manage their emotions | Professional CapitalProfessional Capital
This document explores the concept of emotional competence among salespeople. It defines emotional competence as the integration of seven proficiencies: perspective taking, strategic self-presentation, convincing others of genuine emotions, lack of guilt in strategic emotions, fostering authenticity, developing an ironic perspective, and incorporating moral codes into emotion regulation. A cluster analysis of 220 salespeople identified four groups with different patterns of competence. One group scored high on all proficiencies and effectively coped with emotions, achieved social capital, and performed well. The study aims to operationalize and test the concept of emotional competence in a work domain.
Why sales professionals love to help customers | Professional CapitalProfessional Capital
This document describes two studies that examine how genetic polymorphisms of the oxytocin receptor gene (OXTR) relate to social motivation and brain connectivity in sales professionals. Study 1 found that sales professionals carrying the OXTR GG allele were more motivated to help customers than impose goods/services, compared to those with the AA/AG allele. Study 2 used fMRI to find that sales professionals with the GG allele showed greater connectivity between social brain regions, especially the amygdala and prefrontal cortex, when viewing faces with different emotions. The results suggest carriers of the GG allele are more sensitive to social cues and motivated to engage with others.
This document discusses building strong brands. It defines key aspects of strong brands, including soundness and adaptability. Soundness refers to the strength of brand associations, consistency across touchpoints, and integrity in living the brand values. Adaptability means the brand can evolve over time, space, and organizationally while maintaining consistency. Strong brands develop a clear long-term vision comprising an envisioned future, purpose, and values. They also leverage storytelling to effectively communicate brand meanings through compelling narratives that engage stakeholders.
This document discusses the conceptualization and operationalization of emotion-based political brand equity. It begins by reviewing political emotion causation theory, which proposes that emotions can be elicited both implicitly and explicitly. This theory is then used to conceptualize a dual construct of implicit and explicit emotion-based political brand equity. The document describes operationalizing this construct using data from the 2008-2009 American National Election Studies to measure its predictive power on voting behavior. Results showed the new construct was valid, reliable, and predictive across different political consumer segments. In closing, the document discusses contributions, implications, and directions for future research.
This document discusses relationship marketing and its impact on organizational performance. It explores the theoretical foundations of relationship marketing and examines how adopting this concept affects performance indicators. Relationship marketing focuses on creating and sustaining long-term relationships with customers through mutual cooperation rather than short-term transactions. When organizations implement relationship marketing successfully through internal marketing and keeping promises to customers, it can lead to improved customer loyalty, retention and positive word-of-mouth, ultimately improving organizational performance. Interactive marketing and developing trust, empathy and reciprocity in customer relationships are important aspects of relationship marketing discussed in the document.
Understanding the effect of customer relationship management effors on custom...Wesley Pinheiro
The document discusses a study investigating the differential effects of customer relationship perceptions (CRPs) and relationship marketing instruments (RMIs) on customer retention and customer share development over time. The author develops a conceptual model examining how affective commitment, satisfaction, payment equity, loyalty programs, and direct mailings impact both customer retention and customer share development. The author hypothesizes that affective commitment and loyalty programs positively impact both outcomes, while direct mailings primarily influence customer share development. The study uses longitudinal data from a financial services company to test these hypotheses.
The document discusses a study investigating the differential effects of customer relationship perceptions (CRPs) and relationship marketing instruments (RMIs) on customer retention and customer share development over time. The author develops a conceptual model examining how affective commitment, satisfaction, payment equity, loyalty programs, and direct mailings impact both customer retention and customer share development. The author hypothesizes that affective commitment and loyalty programs positively impact both outcomes, while direct mailings primarily influence customer share development. The study uses longitudinal data from a financial services company to test these hypotheses.
Merkl-Davies, Doris M. and Brennan, Niamh M. [2007] Discretionary Disclosure ...Prof Niamh M. Brennan
This paper reviews and synthesizes the literature on discretionary narrative disclosures. We explore why, how, and whether preparers of corporate narrative reports use discretionary disclosures in corporate narrative documents and why, how, and whether users react thereto. To facilitate the review, we provide three taxonomies based on: the motivation for discretionary narrative disclosures (opportunistic behavior, i.e. impression management, versus provision of useful incremental information); the research perspective (preparer versus user); and seven discretionary disclosure strategies.
A conceptual framework for customer value within a distribution systemfredrickaila
This document provides a conceptual framework for understanding customer value within a distribution system. It proposes that customer value in a distribution system can be conceptualized as the interactions among several key factors: customer service, order cycle time, inventory levels, warehouse locations, transportation methods, and customer complaints. The framework suggests linear relationships between these factors and hypothesizes that higher levels of customer service, shorter order cycle times, and fewer complaints will lead to higher perceived customer value. The conceptual model is intended to help managers design distribution strategies focused on maximizing customer value.
This study aimed to identify which characteristics - personality, competencies, or attitude towards sales - best predict sales performance. Researchers assessed 140 insurance salespeople on these dimensions and divided them into successful and unsuccessful groups based on performance data. Discriminant analysis found that 3 personality traits (achievement orientation, optimism, self-confidence), attitude towards sales, and 2 competencies (customer orientation, communication skills) significantly differentiated the groups. Personality traits and attitude towards sales were the strongest predictors of performance, while competencies did not significantly predict on their own. The results suggest using a multidimensional approach including personality, competencies, and attitude to improve salesperson assessment and selection.
The study of the effects of the pricing policies on an organizations profit: ...EECJOURNAL
The main purpose of this research is to examine the influence of pricing policies on organizations’ profit. The researcher applied a quantitative method to analyze the data in this study, the researcher prepared questionnaire and distributed in the different organizations located in Erbil. The survey was divided into two sections; the first section was demographic analysis which started with respondent’s age, gender, and level of education. The second section of survey consisted of 32 questions concerning pricing policies and its impact on organization profit. 89 participants were involved in the current study; however the researcher used SPSS software in order to analyze the gathered data. Moreover, the researcher aimed to develop the main research hypothesis which stated that there is a positive and significant impact of pricing policies on organization profit. The result of a simple regression analysis demonstrates that the value B for pricing policy is .712 which is greater than .0001 this proves that the main research hypothesis is supported which stated that the there is a positive and significant impact of pricing policy on organization profit.
- The study examines how positive reinforcement of desired salesperson behaviors, like linking pay, praise, or promotions to performance, can motivate a salesforce to perform those behaviors.
- A survey of 350 salespeople and managers at multinational firms in Nigeria found that positively reinforcing functional behaviors significantly increases their likelihood of being repeated.
- The study recommends that managers distribute outcomes to salespeople based on performance of desired behaviors and use positive reinforcement over negative reinforcement or punishment whenever possible.
The document summarizes a meta-analysis of over 1,000 estimates of short-term and long-term advertising elasticity from 56 studies published between 1960 and 2008. Some of the key findings include: the average short-term advertising elasticity is 0.12, lower than the prior estimate of 0.22; advertising elasticity has declined over time; and elasticity is higher for durable goods, early in a product's lifecycle, when using yearly vs. quarterly data, and when measured in gross rating points vs. monetary terms. The average long-term elasticity is 0.24, lower than the prior implied average of 0.41. The study provides new generalizations about how advertising effectiveness has changed over
This document summarizes a research paper that examines how account managers create social capital within their organizations to improve performance. It discusses how account managers need to fulfill two roles - product strategy formation and strategy implementation. To do so, they require two types of social ties - peripheral knowledge ties to gain knowledge of organizational practices, and implementation support ties to obtain colleagues' time and skills. The paper hypothesizes that account managers invest in both types of ties through communal and instrumental behaviors, which provides them peripheral knowledge and implementation support, leading to better performance.
3/26/2019 Print
https://content.ashford.edu/print/AUBUS620.12.1?sections=front_matter,ch01,ch01introduction,sec1.1,sec1.2,sec1.3,sec1.4,ch01conclusion,ch01_e… 1/24
3/26/2019 Print
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Chapter 1
Strategic Planning and the Marketing Management
Process
istockphoto/Thinkstock
Learning Outcomes
By the end of this chapter, you should:
Understand the fundamentals, concepts, and func�ons of marke�ng and marke�ng management.
Know the four elements of the marke�ng mix and be able to provide examples of the common areas of decision
making related to each.
Recognize the purpose, goals, and basic design of a marke�ng plan.
Understand how different levels of strategy work together to promote the objec�ves of the firm.
3/26/2019 Print
https://content.ashford.edu/print/AUBUS620.12.1?sections=front_matter,ch01,ch01introduction,sec1.1,sec1.2,sec1.3,sec1.4,ch01conclusion,ch01_e… 3/24
Ch. 1 Introduction
This chapter inves�gates the fundamentals of strategic planning and the marke�ng management process. We begin with the basics of marke�ng: What is it and
why is it of value? You may already be familiar with some of the core concepts of marke�ng from previous coursework or your professional experience. Just to be
sure, we review the essen�al func�ons and precepts of the discipline right at the start. We then move on to an examina�on of the process of marke�ng
management and the development of strategy. This sec�on highlights the strategy alterna�ves available to the organiza�on and how the marke�ng mix can be
deployed to achieve strategic objec�ves. We then examine how a marke�ng plan iden�fies the specific tac�cs for the implementa�on of strategy. The concluding
sec�ons of Chapter 1 examine how different levels of strategy interact to guide the organiza�on.
***
Throughout my career I have traveled extensively and experienced my fair share of layovers and delays at airports. I have found that reading and conversa�on are
the two most reliable ways to pass the �me while wai�ng for flights to arrive, weather to clear, and bo�lenecks to resolve themselves. On one such occasion in
Toronto, I was cha�ng with a flight a�endant about our respec�ve career choices and ambi�ons. Once I had explained that I taught marke�ng at a university and
did some work as a marke�ng consultant as well, she seemed disappointed. "Marke�ng? Really?" she asked incredulously. "I mean, you sound like a very smart
man. . . . isn't that kind of a waste?" I was stunned and a li�le embarrassed . . . and never did find a suitable response before the conversa�on migrate.
This case study examines MPO Fenêtres, a French window manufacturer seeking to launch new PVC windows with improved thermal performance using triple glazing. As customers are more concerned with sustainability and energy efficiency, MPO Fenêtres sees an opportunity to market windows with technical advantages. However, the company must determine the right marketing strategy, salesforce size, and pricing to successfully launch the new windows.
This case examines MPO Fenêtres, a French window manufacturer that seeks to launch new triple-glazed windows with improved thermal performance. As customers focus more on environmental factors and energy efficiency, MPO Fenêtres must successfully market and sell its innovative new windows. The case analyzes MPO Fenêtres' internal and external environment to develop a marketing strategy for the window launch.
This document discusses multifunctional teams in marketing. It begins by explaining that as competition increases, firms are recognizing the importance of managing horizontal aspects across functions and business units through increased collaboration. One way this is occurring is through the use of cross-functional teams. The paper provides an overview of the literature on teamwork and examines the nature, roles, and involvement of marketing in multifunctional teams. It also identifies that more research is needed from a marketing perspective on issues like team composition, communication, and responsibilities of different functions within cross-functional teams.
The document discusses a study that aimed to develop and empirically test a conceptual framework explaining the influence of the sales force on brand equity in business-to-business (B2B) contexts. The study developed a framework incorporating four key drivers of B2B brand equity identified in the literature: the salesperson's personality, the salesperson's behavior, product quality, and non-personal marketing communications. It then empirically tested hypotheses about the effects of these drivers on brand equity with a sample of 201 B2B firms in Germany. The results confirmed the high relevance of the sales force for building and maintaining strong B2B brands, with the salesperson's behavior being the most important driver, followed by their personality, product
This document discusses developing an IT value proposition and strategic themes for IT strategy maps. It explores several approaches for constructing the IT value proposition based on case studies of different organizations. Key approaches identified include: 1) linking applications that support business objectives to the strategic IT service portfolio, 2) including business unit strategic outcomes in the IT scorecard using a linkage scorecard, 3) defining IT's role in enabling organizational objectives as the value proposition, and 4) capturing expectations of IT from business units as the value proposition. The document also discusses using information criteria from COBIT to define the customer perspective of an IT strategy map.
This document provides an overview of relationship marketing and customer relationship management. It discusses relationship marketing as a holistic concept that focuses on identifying, establishing, maintaining and enhancing relationships with customers and other stakeholders for mutual benefit. Relationship marketing requires developing long-term trusting relationships and seeing customers as strategic resources. Customer relationship management involves collecting, analyzing and using customer data to improve profitability by generating greater customer lifetime value.
Customers of multinational enterprises (MNEs) exist almost everywhere. Cross border B2C ecommerce
is expected to double by 2022 according to Forrester Research. How do MNE’s efficiently leverage
their business development efforts across geographic markets?
This document discusses business models and how they can be represented. It defines a business model as consisting of two elements: 1) a set of management choices regarding how the organization operates, and 2) the consequences that arise from those choices. It discusses different types of choices (policies, assets, governance) and consequences (flexible, rigid). The document also presents a framework for representing business models using causal loop diagrams that show interconnections between choices and consequences through theories. It notes that full representations are impractical, so aggregation and decomposability are used to simplify representations.
Why sales professionals love to help customers | Professional CapitalProfessional Capital
This document describes two studies that examine how genetic polymorphisms of the oxytocin receptor gene (OXTR) relate to social motivation and brain connectivity in sales professionals. Study 1 found that sales professionals carrying the OXTR GG allele were more motivated to help customers than impose goods/services, compared to those with the AA/AG allele. Study 2 used fMRI to find that sales professionals with the GG allele showed greater connectivity between social brain regions, especially the amygdala and prefrontal cortex, when viewing faces with different emotions. The results suggest carriers of the GG allele are more sensitive to social cues and motivated to engage with others.
This document discusses building strong brands. It defines key aspects of strong brands, including soundness and adaptability. Soundness refers to the strength of brand associations, consistency across touchpoints, and integrity in living the brand values. Adaptability means the brand can evolve over time, space, and organizationally while maintaining consistency. Strong brands develop a clear long-term vision comprising an envisioned future, purpose, and values. They also leverage storytelling to effectively communicate brand meanings through compelling narratives that engage stakeholders.
This document discusses the conceptualization and operationalization of emotion-based political brand equity. It begins by reviewing political emotion causation theory, which proposes that emotions can be elicited both implicitly and explicitly. This theory is then used to conceptualize a dual construct of implicit and explicit emotion-based political brand equity. The document describes operationalizing this construct using data from the 2008-2009 American National Election Studies to measure its predictive power on voting behavior. Results showed the new construct was valid, reliable, and predictive across different political consumer segments. In closing, the document discusses contributions, implications, and directions for future research.
This document discusses relationship marketing and its impact on organizational performance. It explores the theoretical foundations of relationship marketing and examines how adopting this concept affects performance indicators. Relationship marketing focuses on creating and sustaining long-term relationships with customers through mutual cooperation rather than short-term transactions. When organizations implement relationship marketing successfully through internal marketing and keeping promises to customers, it can lead to improved customer loyalty, retention and positive word-of-mouth, ultimately improving organizational performance. Interactive marketing and developing trust, empathy and reciprocity in customer relationships are important aspects of relationship marketing discussed in the document.
Understanding the effect of customer relationship management effors on custom...Wesley Pinheiro
The document discusses a study investigating the differential effects of customer relationship perceptions (CRPs) and relationship marketing instruments (RMIs) on customer retention and customer share development over time. The author develops a conceptual model examining how affective commitment, satisfaction, payment equity, loyalty programs, and direct mailings impact both customer retention and customer share development. The author hypothesizes that affective commitment and loyalty programs positively impact both outcomes, while direct mailings primarily influence customer share development. The study uses longitudinal data from a financial services company to test these hypotheses.
The document discusses a study investigating the differential effects of customer relationship perceptions (CRPs) and relationship marketing instruments (RMIs) on customer retention and customer share development over time. The author develops a conceptual model examining how affective commitment, satisfaction, payment equity, loyalty programs, and direct mailings impact both customer retention and customer share development. The author hypothesizes that affective commitment and loyalty programs positively impact both outcomes, while direct mailings primarily influence customer share development. The study uses longitudinal data from a financial services company to test these hypotheses.
Merkl-Davies, Doris M. and Brennan, Niamh M. [2007] Discretionary Disclosure ...Prof Niamh M. Brennan
This paper reviews and synthesizes the literature on discretionary narrative disclosures. We explore why, how, and whether preparers of corporate narrative reports use discretionary disclosures in corporate narrative documents and why, how, and whether users react thereto. To facilitate the review, we provide three taxonomies based on: the motivation for discretionary narrative disclosures (opportunistic behavior, i.e. impression management, versus provision of useful incremental information); the research perspective (preparer versus user); and seven discretionary disclosure strategies.
A conceptual framework for customer value within a distribution systemfredrickaila
This document provides a conceptual framework for understanding customer value within a distribution system. It proposes that customer value in a distribution system can be conceptualized as the interactions among several key factors: customer service, order cycle time, inventory levels, warehouse locations, transportation methods, and customer complaints. The framework suggests linear relationships between these factors and hypothesizes that higher levels of customer service, shorter order cycle times, and fewer complaints will lead to higher perceived customer value. The conceptual model is intended to help managers design distribution strategies focused on maximizing customer value.
This study aimed to identify which characteristics - personality, competencies, or attitude towards sales - best predict sales performance. Researchers assessed 140 insurance salespeople on these dimensions and divided them into successful and unsuccessful groups based on performance data. Discriminant analysis found that 3 personality traits (achievement orientation, optimism, self-confidence), attitude towards sales, and 2 competencies (customer orientation, communication skills) significantly differentiated the groups. Personality traits and attitude towards sales were the strongest predictors of performance, while competencies did not significantly predict on their own. The results suggest using a multidimensional approach including personality, competencies, and attitude to improve salesperson assessment and selection.
The study of the effects of the pricing policies on an organizations profit: ...EECJOURNAL
The main purpose of this research is to examine the influence of pricing policies on organizations’ profit. The researcher applied a quantitative method to analyze the data in this study, the researcher prepared questionnaire and distributed in the different organizations located in Erbil. The survey was divided into two sections; the first section was demographic analysis which started with respondent’s age, gender, and level of education. The second section of survey consisted of 32 questions concerning pricing policies and its impact on organization profit. 89 participants were involved in the current study; however the researcher used SPSS software in order to analyze the gathered data. Moreover, the researcher aimed to develop the main research hypothesis which stated that there is a positive and significant impact of pricing policies on organization profit. The result of a simple regression analysis demonstrates that the value B for pricing policy is .712 which is greater than .0001 this proves that the main research hypothesis is supported which stated that the there is a positive and significant impact of pricing policy on organization profit.
- The study examines how positive reinforcement of desired salesperson behaviors, like linking pay, praise, or promotions to performance, can motivate a salesforce to perform those behaviors.
- A survey of 350 salespeople and managers at multinational firms in Nigeria found that positively reinforcing functional behaviors significantly increases their likelihood of being repeated.
- The study recommends that managers distribute outcomes to salespeople based on performance of desired behaviors and use positive reinforcement over negative reinforcement or punishment whenever possible.
The document summarizes a meta-analysis of over 1,000 estimates of short-term and long-term advertising elasticity from 56 studies published between 1960 and 2008. Some of the key findings include: the average short-term advertising elasticity is 0.12, lower than the prior estimate of 0.22; advertising elasticity has declined over time; and elasticity is higher for durable goods, early in a product's lifecycle, when using yearly vs. quarterly data, and when measured in gross rating points vs. monetary terms. The average long-term elasticity is 0.24, lower than the prior implied average of 0.41. The study provides new generalizations about how advertising effectiveness has changed over
This document summarizes a research paper that examines how account managers create social capital within their organizations to improve performance. It discusses how account managers need to fulfill two roles - product strategy formation and strategy implementation. To do so, they require two types of social ties - peripheral knowledge ties to gain knowledge of organizational practices, and implementation support ties to obtain colleagues' time and skills. The paper hypothesizes that account managers invest in both types of ties through communal and instrumental behaviors, which provides them peripheral knowledge and implementation support, leading to better performance.
3/26/2019 Print
https://content.ashford.edu/print/AUBUS620.12.1?sections=front_matter,ch01,ch01introduction,sec1.1,sec1.2,sec1.3,sec1.4,ch01conclusion,ch01_e… 1/24
3/26/2019 Print
https://content.ashford.edu/print/AUBUS620.12.1?sections=front_matter,ch01,ch01introduction,sec1.1,sec1.2,sec1.3,sec1.4,ch01conclusion,ch01_e… 2/24
Chapter 1
Strategic Planning and the Marketing Management
Process
istockphoto/Thinkstock
Learning Outcomes
By the end of this chapter, you should:
Understand the fundamentals, concepts, and func�ons of marke�ng and marke�ng management.
Know the four elements of the marke�ng mix and be able to provide examples of the common areas of decision
making related to each.
Recognize the purpose, goals, and basic design of a marke�ng plan.
Understand how different levels of strategy work together to promote the objec�ves of the firm.
3/26/2019 Print
https://content.ashford.edu/print/AUBUS620.12.1?sections=front_matter,ch01,ch01introduction,sec1.1,sec1.2,sec1.3,sec1.4,ch01conclusion,ch01_e… 3/24
Ch. 1 Introduction
This chapter inves�gates the fundamentals of strategic planning and the marke�ng management process. We begin with the basics of marke�ng: What is it and
why is it of value? You may already be familiar with some of the core concepts of marke�ng from previous coursework or your professional experience. Just to be
sure, we review the essen�al func�ons and precepts of the discipline right at the start. We then move on to an examina�on of the process of marke�ng
management and the development of strategy. This sec�on highlights the strategy alterna�ves available to the organiza�on and how the marke�ng mix can be
deployed to achieve strategic objec�ves. We then examine how a marke�ng plan iden�fies the specific tac�cs for the implementa�on of strategy. The concluding
sec�ons of Chapter 1 examine how different levels of strategy interact to guide the organiza�on.
***
Throughout my career I have traveled extensively and experienced my fair share of layovers and delays at airports. I have found that reading and conversa�on are
the two most reliable ways to pass the �me while wai�ng for flights to arrive, weather to clear, and bo�lenecks to resolve themselves. On one such occasion in
Toronto, I was cha�ng with a flight a�endant about our respec�ve career choices and ambi�ons. Once I had explained that I taught marke�ng at a university and
did some work as a marke�ng consultant as well, she seemed disappointed. "Marke�ng? Really?" she asked incredulously. "I mean, you sound like a very smart
man. . . . isn't that kind of a waste?" I was stunned and a li�le embarrassed . . . and never did find a suitable response before the conversa�on migrate.
This case study examines MPO Fenêtres, a French window manufacturer seeking to launch new PVC windows with improved thermal performance using triple glazing. As customers are more concerned with sustainability and energy efficiency, MPO Fenêtres sees an opportunity to market windows with technical advantages. However, the company must determine the right marketing strategy, salesforce size, and pricing to successfully launch the new windows.
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When intelligence is dysfunctional for achieving sales performance | Professional Capital
1. When Intelligence is (Dys)Functional for Achieving Sales
Performance
Willem J. Verbeke, Frank D. Belschak, Arnold B. Bakker
and Bart Dietz
ERIM REPORT SERIES RESEARCH IN MANAGEMENT
ERIM Report Series reference number
ERS-2008-034-MKT
Publication
June 2008
Number of pages
51
Persistent paper URL
http://hdl.handle.net/1765/12633
Email address corresponding author
verbeke@few.eur.nl
Address
Erasmus Research Institute of Management (ERIM)
RSM Erasmus University / Erasmus School of Economics
Erasmus Universiteit Rotterdam
P.O.Box 1738
3000 DR Rotterdam, The Netherlands
Phone:
+ 31 10 408 1182
Fax:
+ 31 10 408 9640
Email:
info@erim.eur.nl
Internet:
www.erim.eur.nl
Bibliographic data and classifications of all the ERIM reports are also available on the ERIM website:
www.erim.eur.nl
2. ERASMUS RESEARCH INSTITUTE OF MANAGEMENT
REPORT SERIES
RESEARCH IN MANAGEMENT
ABSTRACT AND KEYWORDS
Abstract
Using two different samples of salespeople, the authors investigate how a combination of
general mental ability (GMA) and specific skills and capabilities (social competence and thinking
styles) allows salespeople to reach their sales goals. The study finds evidence for an interaction
between GMA and social competence. If combined with high social competence, high GMA
leads to highest sales performance; if combined with low social competence, high GMA leads to
lowest sales performance. In addition, interaction effects between GMA and a judicial thinking
style were found. Salespeople high on GMA have the most potential for attaining high levels of
sales performance when combined with specific skills; when lacking these skills they may
become the firm’s worst performers.
Free Keywords
sales, knowledge, knowledge based marketing, general mental ability, thinking styles
Availability
The ERIM Report Series is distributed through the following platforms:
Academic Repository at Erasmus University (DEAR), DEAR ERIM Series Portal
Social Science Research Network (SSRN), SSRN ERIM Series Webpage
Research Papers in Economics (REPEC), REPEC ERIM Series Webpage
Classifications
The electronic versions of the papers in the ERIM report Series contain bibliographic metadata
by the following classification systems:
Library of Congress Classification, (LCC) LCC Webpage
Journal of Economic Literature, (JEL), JEL Webpage
ACM Computing Classification System CCS Webpage
Inspec Classification scheme (ICS), ICS Webpage
3. Forthcoming in Journal of Marketing
When Intelligence is (Dys)Functional
for Achieving Sales Performance
Willem J. Verbeke1,
Frank D. Belschak2,
Arnold B. Bakker 3, and
Bart Dietz 4
(1) Willem J. Verbeke is Chair Professor in Sales and Account Management and Associate
Professor in Knowledge Based Marketing in the Marketing Department, Erasmus University
Rotterdam; P.O. Box 1738, 3000 DR Rotterdam, the Netherlands; phone: +31-10-4081308;
fax: +31-10-4089169; email: verbeke@few.eur.nl
(2) Frank D. Belschak is Assistant Professor in the HRM - Organizational Behavior
Department, University of Amsterdam Business School; Roetersstraat 11, 1018 WB
Amsterdam, the Netherlands; phone: +31-20-5254027; fax: +31-20-5254182; email:
f.d.belschak@uva.nl
(3) Arnold B. Bakker is Professor for Work and Organizational Psychology in the Department
of Psychology, Erasmus University Rotterdam; P.O. Box 1738, 3000 DR Rotterdam, the
Netherlands; phone: +31-10-4088853; fax: +31-10-4089009; email: bakker@fsw.eur.nl
1
4. (4) Bart Dietz is Assistant Professor in the Organisation and Personnel Management
Department, Erasmus University Rotterdam; P.O. Box 1738, 3000 DR Rotterdam, the
Netherlands; phone: +31-10-4081949; fax: +31-10-4089015; email: bdietz@rsm.nl
2
5. When Intelligence is (Dys)Functional
For Achieving Sales Performance
Abstract
Using two different samples of salespeople, the authors investigate how a
combination of general mental ability (GMA) and specific skills and
capabilities (social competence and thinking styles) allows salespeople to
reach their sales goals. The study finds evidence for an interaction between
GMA and social competence. If combined with high social competence, high
GMA leads to highest sales performance; if combined with low social
competence, high GMA leads to lowest sales performance. In addition,
interaction effects between GMA and a judicial thinking style were found.
Salespeople high on GMA have the most potential for attaining high levels of
sales performance when combined with specific skills; when lacking these
skills they may become the firm’’s worst performers.
Keywords
Sales, knowledge, knowledge based marketing, general mental ability, thinking
styles
3
6. As we are shifting to a knowledge intensive economy, salespeople sell
knowledge based solutions to customers (Bettencourt et al. 2002). An essential part of
selling knowledge based solutions is transferring knowledge to customers; salespeople
therefore have to act as knowledge brokers (Sarvary 1999). During the sales
interaction, both salesperson and customer play an active role and, together, co-create a
solution (Vargo and Lusch 2004). This co-creation process takes place via
conversations between the customer and the salesperson. For instance, salespeople
share analogies and cases they earlier experienced with other customers to substantiate
their solutions (Wierenga and van Bruggen 1997), and such cases help customers to
(re-) frame and better understand their own needs, and conceive of possible solutions
that fit those needs (Wotruba 1991). As a consequence, they may make smarter buying
choices that –– ideally –– conform to the solutions and sales propositions of the
salesperson (shaping) (e.g., Cross and Sproull 2004).
During this social construction of (knowledge based) solutions, salespeople’’s
absorptive capacity is constantly challenged by customers (Cohen and Levinthal 1990).
Intuitively, one may argue that cognitive ability, g-factor, or general mental ability
(GMA) –– which reflects a person’’s innate ability to think flexibly and reason abstractly
(Sternberg 2003, p. 20) –– should therefore play a prominent role. While this argument
may seem straightforward, a closer look at the literature reveals a big debate around
this issue. Many researchers argue that GMA is a predictor of job performance (e.g.,
Kuncell, Hezlett, and Ones 2004; Schmidt and Hunter 2004). Indeed, Hunter and
Hunter (1984) show in their meta-analytic study that GMA predicts salespersons’’
performance particularly well. However, others report non-significant and close to zero
4
7. correlations between GMA and job performance (e.g., Ceci and Liker 1986; Wagner
and Sternberg 1985). Furthermore, Vinchur et al. (1998) and Schmitt et al. (1984)
show only marginal correlations between GMA test scores and sales performance in
their meta-analytic studies. Hence, the evidence regarding the relationship between
GMA and job performance is mixed.
How can these conflicting findings be explained or integrated? Sujan, Weitz
and Kumar (1994) as well as Cron et al. (2005) propose that traditional views of
intelligence assessed through GMA tests are too narrow and should be replaced by a
contextual perspective. Contextual intelligence refers to specific applications of one’’s
intelligence which, in the context of personal selling, are for instance captured by the
concepts of social competence and thinking styles (Sternberg 1997). As Sujan, Weitz,
and Kumar (1994, p. 40) note, ““contextual intelligence requires planning or mental
preparing, being confident in one’’s ability to alter behavior, and making situationally
appropriate adjustments to behavior.”” Consistently, we propose that GMA in and by
itself does not predict job performance. Only in interaction with other aspects of
intelligence it will have a significant predictive value in explaining job performance.
Such a perspective is called the factorial view of intelligence. Metaphorically speaking,
GMA ““is to psychology as carbon is to chemistry”” (Kuncel et al. 2004, p. 148) as it
needs to be combined with specific skills, such as social competence, to show its
effects. For instance, salespeople not only ought to possess a thorough understanding
of the ideas behind the solutions/services they sell to customers (conceptual product
space; see Rosa et al. 1999), they also should be able to present that knowledge in
relevant and timely ways to customers so that they understand the service/product’’s
value for their firm. Similarly, even though abilities such as GMA may be important
5
8. for executing cognitively taxing tasks, this abstract ability has to be applied in concrete
situations; being highly intelligent is not of any use for a salesperson, if s/he does not
use this intelligence for specific purposes, e.g. to analyze the customer’’s situation,
judge it, find an appropriate solution that satisfies the customer’’s needs, and
communicate the solution in clear terms. As Sternberg (1997, p. 9) notes: ““How people
prefer to think might just be as important as how well they think.””
The goal of this paper is to present and test the hypothesis that the relationship
between GMA and job performance is moderated by other capacities and skills of the
employee. Specifically, we will test our predictions in a sales setting. We present a
factorial view on intelligence that incorporates two main dimensions, that is, GMA as
a person’’s cognitive ‘‘hardware’’ and social competence and thinking styles as the
corresponding ‘‘software’’; we hypothesize that the effect of salespersons’’ GMA on
their performance is contingent on the way they apply and use their cognitive
‘‘software’’ during customer interactions. This hypothesis is tested in two different
samples: In a first study, we investigate a sample of salespeople in one specific
company who are selling advertising space to business customers. In a second study,
we try to validate the findings of the first study and test their generalizability in a
sample covering different industries and involving complex, knowledge intensive sales
tasks.
The Role of Knowledge in Sales
Authors in sales (e.g., Wotruba 1991; Weitz and Bradford 1999) note that salespeople’’s role
has changed from order taking to partnering/procreation. They distinguish between the
provider/production stage (e.g., informing customers about the firm’’s offerings), the
persuader stage (e.g., influencing customers by using hard-selling techniques), the problem6
9. solver/marketing stage (e.g., influencing customers by practicing adaptive selling), and,
finally, the procreation/partnering stage (e.g., co-producing business solutions with
customers). As Vargo and Lush (2004) argue, according to a goods-centered dominant logic
knowledge is treated largely as an exogenous factor whereas according to a service-centered
dominant logic the skills and knowledge of the salesperson are key resources that render
services or produce effects. Thus, knowledge is an endogenous factor in the knowledge based
economy nowadays (Romer 1986). Vargo and Lush’’s distinction shows similarities with the
sales stages as introduced by Wotruba (1991) and Weitz and Bradford (1999): while the first
three stages may be seen as indicators of a goods-centered economy, the procreation/
partnering stage can be linked to a service-centered economy in which knowledge takes a
prominent role in explaining exchanges between firms.
To understand and predict the performance of salespeople operating in the three first
mentioned stages, researchers have primarily focused on salespeople’’s social skills and
abilities while mostly ignoring the role of knowledge (such as a good understanding of the
product space or the customer’’s industry, see Weitz and Bradford 1999). Prominent examples
are boundary role theory which concentrates on how salespeople enact a set of activities or
behaviors that are determined by the expectations and demands as communicated to the
salesperson by his/her role set members (e.g., customers, managers) (Churchill, Ford, and
Walker 1990) or adaptive selling, which refers to salespeople’’s ability to fashion different
sales presentations for different (segments of) customers (Spiro and Weitz 1990). However, as
we are entering the partnering/procreation stage salespeople determine the ““buyer’’s problems
or needs and the solutions to those problems or needs through active buyer-seller
collaboration and then creating a market offering uniquely tailored to match those specific
needs of each individual customer”” (Wotruba 1991, p. 4). One would expect that researchers
7
10. on sales should therefore focus on the acquisition and transfer of knowledge as a key variable.
Yet, most of the research on sales in the partnering/procreation stage has focused on
salespeople’’s ability to attain customers’’ trust (e.g., Morgan and Hunt 1994) and
salespeople’’s ability to establish long term relationships with their customers (e.g., Anderson
and Weitz 1992). These research questions, again, are mainly centered on social skills and
neglect the role of knowledge and related cognitive abilities. In this study, we perceive
salespeople as knowledge brokers (e.g., Sarvary 1999); consistently, we add a focus on
cognitive abilities (that is, GMA) to the research agenda.
GMA and its Relevance to the Sales Domain
GMA refers to a person’’s aptitude to engage in complex tasks that require mental
manipulation; this manipulation of information includes discerning similarities and
inconsistencies, drawing inferences, and grasping new concepts, and it reflects intelligence in
action (Gottfredson 1999). For instance, salespeople with a high GMA (as compared to a
salespeople with a low GMA) are better able to learn to analyze and describe solutions related
to e.g. logistics, distinguish between different features of technology-based solutions and/or
products, or clearly express how their solutions differ from those of the competitors.
However, GMA has created a large debate on its content validity, especially with the
publication of Herrnstein and Murray’’s book ‘‘The Bell Curve’’ in 1994. Some authors argue,
for example, that the source of variation in IQ test scores is not cognitive, but instead arises
from a ““nexus of sociocognitive-affective factors determining individuals’’ relative
preparedness for the demands of the GMA test”” (Richardson 2002, p. 288). Critics on GMA
also focus on the predictive validity of GMA test-results for job performance. They argue that
GMA is merely one element in a factorial (modular) system of intelligence, which, in some
views, consists of dozens of separate abilities that are needed in order to be successful in
8
11. everyday life as well as in professional life (Mackintosh 1998; Neisser et al. 1996). Whereas
the unitarian view argues that a general factor of intelligence (GMA) holds predictive validity
for job performance, scholars taking a ‘‘factorial approach’’ propose that a broader conception
of intelligence (beyond GMA) that encompasses capabilities to cope with tasks of everyday
life as well (i.e. software, such as social competence) results in better predictions of job
performance (Carroll 1993; Sternberg et al. 1981). These conclusions have been supported by
recent meta-analytic studies on the relationship between GMA and sales performance which
show that GMA is mainly unrelated to (objective) sales performance (cf. Farrell and Hakstian
2001; Vinchur et al. 1998). As Bertua, Anderson, and Salgado (2005, p. 399) argue based on
their data, ““in the case of sales occupations, additional moderators may input on the validity
of GMA tests.”” Research on GMA and job performance mostly investigated main effects of
GMA in terms of additional explanatory value as compared to other factors such as
personality (Barrick, Mount, and Strauss 1994). To date, only very few studies have
investigated the interaction between GMA and other variables for predicting job performance
in general (social competence: Ferris, Witt, and Hochwarter 2001; emotional intelligence:
Cote and Miners 2006) or sales performance in particular (conscientiousness: Mount, Barrick,
and Straus 1999; attributional style: Corr and Gray 1995).
Consistent with the factorial approach of intelligence, authors in sales argue that
salespersons certainly need GMA as hardware, for instance, to understand the concepts
behind the products and solutions they sell which may be complex. However, in addition,
they need software such as specific skills that allow them to apply their GMA in effective
ways and achieve high contextual intelligence (Cron et al. 2005; Sujan, Weitz, and Kumar
1994). In what follows, we will investigate the role of two specific types of software for the
area of personal selling: social competence and thinking styles. Social competence is a crucial
9
12. factor in selling because the personal interaction with individuals inside and outside the firm
is a key aspect of sales. At the same time salespeople also act as knowledge brokers that have
to manage different sources of knowledge (e.g., create new knowledge and help customers to
integrate it into their existing knowledge; see Weitz and Bradford 1999); key activities of this
knowledge brokering role are captured by the concept of thinking styles. To our knowledge,
the effects of these variables (in particular in interaction with GMA) have not been
investigated in a sales context to date.
Social Competence
Social competence is reflected in salespeople’’s interpersonal perceptiveness and the capacity to
adjust their cognitive abilities to different situational demands to effectively influence and
control (if needed) the response of others - for salespeople predominantly their customers (see
Goleman 2006; Wright 2002). The concept of social competence resembles the construct of
adaptive selling in the sales literature, i.e. salespersons’’ capacity to alter their sales approaches
during or across customer interactions based on their perceptions of the nature of the selling
situations (Spiro and Weitz 1990, p. 62). Yet, social competence is broader than adaptive
selling: social competence allows salespeople to observe customers’’ behaviors within their
own social context and interpret their intentions, goals, and needs. This is the basis for
interacting in ways that are mutually beneficial to both the customer and the salesperson.
Examples are giving thoughtful explanations of a product/service at the right time to the right
person; or realizing and correctly understanding a customer’’s needs or unexpressed resistances
so that the salesperson can properly explain what a solution means for the customer
(perspective taking) (e.g., Zaltman 2003). Similarly, Gardner (1993) notes that people high in
social skills not only are more successful in understanding and reading social interactions but
also are more adept at evaluating others’’ opinions of their own capacities (Goleman 2006).
10
13. Some authors use the term social intelligence here (e.g., Goleman 2006); however, as other
researchers argue (e.g., Ferris, Witt, and Hochwarter 2001; Hogan and Shelton 1998), social
competence may be a more appropriate label for the construct as it is not a stable personal
ability (such as GMA) but rather learned through training and personal experiences.
Thinking Styles
Sternberg (1997) introduced the concept of thinking styles, defined as a person’’s preferred
styles of using his/ her cognitive information processing abilities. Thinking styles are hence
part of a person’’s software and do not correspond to cognitive abilities like GMA. Thinking
styles reflect different ways in which people organize or govern themselves, and, in this
sense, thinking styles refer to a theory of self-government (Sternberg 1997). Salespeople
have to constantly learn from new and different sources in their sales job (customers, new
products and technologies) (Vargo and Lush 2004) such that they acquire heterogeneous
knowledge (Rodan and Galunic 1999) or strategic knowledge (Weitz and Bradford 1999). In
this sense, Weitz and Bradford (1999, p. 249) note that that ideal candidates for a sales
position in a partnering era are those that have worked in various functional areas of the firm
and have experience with the buying firm to which they will be assigned as well as the
buying firm’’s industry. Thinking styles reflect the way in which salespeople integrate and
transfer that knowledge (e.g., by developing creative new solutions or by strictly following
existing sales scripts). Indeed, thinking styles offer an interesting addition to analyze the
relationship between intelligence and performance. As Sternberg (1997, p. 9) notes, thinking
styles may be one powerful source of unexplained variation in job performance. Research has
shown that, by adding thinking styles, the predictive validity of intelligence for academic
achievement could be increased (Grigorenko and Sternberg 1997; Zhang 2001). We therefore
11
14. elaborate on three thinking styles that represent the functions of self-government: executive,
judicial, and legislative (Sternberg 1997).
The executive style can be found among people who prefer to implement and
carry out procedures. They like to follow rules, figure out which of already existing
ways they should use to get things done, and prefer problems that are pre-fabricated or
pre-structured. People characterized by an executive thinking style are particularly
valuable for companies who have codified procedures for sales campaigns. People who
like to evaluate rules and procedures score high on a judicial thinking style. They enjoy
making judgments and prefer problems in which one has to analyze and evaluate
existing ideas. An example may be a salesperson who tries to investigate the benefit of
a certain solution s/he has used earlier in one industry for a new customer in another
industry. A legislative style characterizes people who enjoy creating and formulating
new solutions to problems (creative play). They prefer problems that are not prestructured or pre-fabricated but rather structure the problem themselves. Legislative
salespeople hence try to be creative and find new solutions for customer problems,
treating every customer as a new case that requires a new, unique solution.
Hypotheses
As we are moving to a knowledge economy, salespeople constantly have to assimilate and
combine heterogeneous knowledge concerning solutions and markets (Rodan and Galunic
2004; Weitz and Bradford 1999). Consequently, they have to transfer that knowledge to
customers and stimulate a learning process; customers then may frame their own business
situation in new ways allowing salespersons and customers to jointly create a tailor made
solution (Cross and Sproull 2004; Wotruba 1991). This knowledge based co-creation process
requires elevated cognitive abilities (GMA) on the side of the salesperson, which have to be
12
15. used in social situations and applied to specific practical problems. We therefore discuss
possible interactions between a salesperson’’s GMA (hardware) and his/her different skills and
abilities (software), specifically, social competence and the three thinking styles presented
above.
GMA and Social Competence
Salespeople with a high social competence and a high GMA will be able to use the essential
concepts of their solutions/services (GMA) (product spaces) and explain them in a language
that fits the customer’’s concerns. They are able to not only break down complex aspects of
the product (-space) in specific parts but also do so in ways that are relevant to a customer;
they can ask the right questions to the customer such that they gain insights in customers’’
needs and problems. Such an understanding, in turn, allows them to develop and
communicate tailor-made solutions that fit customers. They are also able to compare their
solutions to the offers of their competitors and express them in clear terms such that
customers can absorb the information, imagine what a proposed solution means for them, and
(based on that) make informed choices. Specifically, in such situations customers feel
psychological safety (e.g., Edmondson 1999) to structure and explore new ways to formulate
their business problems and needs and to validate their own intuitions and observations
(Cross and Sproull 2004). In addition, salespeople high in GMA and in social competence are
able to provide arguments such that people at the customer’’s firm (e.g., other members of a
buying centre) become enthusiastic about the presented solution, thus creating an emergent
platform within the buying firm that is in favor of the salesperson and supports his/her sales
propositions (e.g., Dawes, Lee, and Dowling 1998).
On the other hand, salespeople high on social competence but low on GMA may well
be able to understand the social environment in which their customers operate but they may
13
16. have a lower understanding of the concepts of their products/services (product space). They
therefore may be less able to explain and/or codify clearly how their solutions fit the
customer’’s needs, or how their offer differs from the ones of their competitors. Thus, even
though they may have a good understanding of the customer’’s concerns or political coalitions
within a buying centre, they will likely not be able to correctly analyze the customer’’s
business and develop matching solutions that fit the long term goals of the customer. As a
consequence, stimulating and fruitful conversations as the source of the co-creation of a
successful business solution cannot emerge (Ferris, Witt, and Hochwarter 2001). Customers
who are well-informed may even feel embarrassed to talk to salespersons that are acting
socially competent but are unable to clearly express the concepts upon which their solutions
are based. We therefore posit:
H1: Social competence and GMA have a multiplicative impact on sales
performance. Specifically, salespeople’’s GMA has a positive effect on their sales
performance when combined with high social competence.
GMA and Thinking Styles
An executive thinking style is particularly conducive to handling problems that are wellstructured, and for which the organization has a set of rules or guidelines (Sternberg 1997;
Zollo and Winter 2002). Salespeople who often use an executive thinking style but who score
low on GMA may prefer to enter sales conversations while relying on sales presentations or
elaborating solutions that have already been codified by colleagues (Hansen, Nohria, and
Tierney 1999; Walker, Kapelianis, and Hutt 2005). Clear codification of solutions can
improve the knowledge transfer to their customers (Kogut and Zander 1996) and may help
customers to structure their own perceptions and intuitions (Leigh and Rethans 1984).
Salespeople high on GMA and high on usage of executive thinking style, however, will
14
17. perform relatively better using this codified knowledge and may have an advantage in these
situations. For instance, despite the fact that salespeople may go through a scripted sales
presentation (Leigh and Rethans 1984), salespeople have to respond to new and
unanticipated questions, quickly analyzing the situation and finding an appropriate nonscripted answer or solution. Therefore, salespeople scoring high on both GMA and an
executive thinking style will perform better. Hence, we hypothesize:
H2: Executive thinking style and GMA have a multiplicative impact on sales
performance. Specifically, salespeople’’s GMA has a positive effect on their sales
performance when combined with a high use of an executive thinking style.
Salespeople are perceived as trusted advisors when they are capable to make relevant
judgments and recommendations (based upon their experiences of similar cases for other
customers) whether the products/services they sell fit the customer’’s state of affairs before
making a concrete sales proposal. This allows the customer to reformulate his/her own
business problems and also validate their own intuitions about potential solutions (Cross and
Sproull 2004). This judging occurs via analogical reasoning: by thoroughly investigating the
customer’’s situation by asking questions, salespeople are able to transfer useful wisdom to
the customer from similar settings (source) they have experienced in the past or from earlier
business cases stored in their memory (e.g., Gavetti, Levinthal, and Rivkin 2005; Wierenga
and van Bruggen 1997; Zaltman 2003). Salespeople high on GMA who make strongly use of
such a judicial thinking style will be able to better manage this analogical reasoning process:
that is, they will better attend to meaningful or deep features of a customer’’s business
problems and then look for similar patterns in cases they have experienced themselves or
learned through colleagues or the business literature. This allows them to better isolate
15
18. relevant cause and effect when evaluating similar business situations and to avoid analogies
that may be used frequently yet only share superficial communalities between target
(customer) and source (business case) (e.g., Holyoak and Thagard 1995; Gavetti and Rivkin
2005). The better the analogies used by the salesperson, the better customers can (re-)
structure and (re-) frame their own business situation (and, as a consequence, their needs),
and the better informed the choices they (can) make concerning the concrete solution of the
salesperson; this, in turn, enhances the salesperson’’s status as a trusted advisor. Salespeople
with low GMA, on the other hand, who strongly use a judicial thinking style, may enjoy
making analogies but their analogies may be only superficial; that is, their low understanding
of both the customer and the business case makes them prone to select only the most obvious
features from both target and source leading to analogies that are not meaningful to
customers (Gavetti and Rivkin 2005). Therefore we predict:
H3: Judicial thinking style and GMA have a multiplicative impact on sales
performance. Specifically, salespeople’’s GMA has a positive effect on their sales
performance when combined with a high use of a judicial thinking style.
When salespeople engage in legislative thinking, they come up with new ideas and
problem formulations through divergent thinking (sourcing and understanding of knowledge
from a variety of situations) and convergent thinking (combining these ideas into a meaningful
and relevant solution) (Perry-Smith and Shalley 2003). These new insights may allow
salespeople and their customers to view their situation and problems from a new and fresh
perspective (““thinking out of the box””). Yet, past meta-analyses on sales could not provide
evidence for any significant effect of salespersons’’ creativity on their sales performance (e.g.,
Barrick and Mount 1991; see also Vinchur et al. 1998). Salespeople with high GMA who make
16
19. strongly use of a legislative thinking style will likely source knowledge from a wide range of
industries and disciplines such that complex and elaborated metaphors are created. Their high
GMA and creative thinking styles may produce business solutions (creations) that only experts
in the field understand (e.g., Moreau, Lehman, and Markman 2001). This ability to create new
concepts may come as a handicap for the salesperson, because customers may see these new
concepts as too far fetched, elaborated, and detailed (e.g., metaphors that have a clear scientific
foundation) that exceeds their understanding. Consequently, customers cannot relate to it
because these new concepts do not allow them to structure their own ideas and intuitions
during encounters with the salesperson. In addition, very innovative ideas may provoke
conflict and resistance in customers who are change-aversive (cf. Janssen, van de Vliert, and
West 2004). Salespeople lower on GMA who engage in legislative thinking will likely develop
concepts of lower complexity that may be easier to understand for customers and therefore
more attractive and appealing. Thus, creative salespeople low on GMA may be perceived to be
original within comprehensible limits. Therefore we propose:
H4: Legislative thinking style and GMA have a multiplicative impact on sales
performance. Specifically, salespeople’’s GMA has a negative effect on their sales
performance when combined with a high use of a legislative thinking style.
Study 1: Method
Procedure and Respondents
A Dutch company selling print advertising provided its cooperation, and all its 171
salespeople participated in the study. Selling advertising space, on the one hand, requires a
thorough knowledge of different advertisement media from the salesperson and involves
communicating how within a rapid changing cross-media environment ads may reinforce the
other messages of firms. On the other hand, media research companies provide support
17
20. material for the salespeople in terms of tools that allow them to calculate and communicate
concrete advertisement information to customers (e.g., terms like GRP’’s or the amount of
exposure to a specific target audience are most commonly used); in this sense, the sales task
is rather well-structured.
The questionnaire consisted of a test for measuring GMA, followed by several scales
assessing participants’’ social competence and thinking styles. In addition, the company
provided objective one-year sales performance figures (sales volumes) for each salesperson.
Respondents filled in the questionnaire in groups of ten in the presence of one of the
researchers. The sample can be described as follows: Two-thirds (67%) of the participants
were male; 25% were younger than 30 years, 40% between 30 and 40 years, 20% between 40
and 50 years, and 15% of the participants were older than 50 years. The majority of the
salespeople had completed the equivalent of high school (31%) or vocational training (34%);
29% had graduated from college, and six percent held a university degree.
Measures
General Mental Ability (GMA) was measured with the Dutch version (Drenth 1965) of
the ‘‘Test of Non Verbal Reasoning’’ (R.B.H. & Co. Inc., New York, USA). The test
consists of forty exercises. Each exercise consists of ten figures. The first four figures
are similar to each other in a certain respect, two of the remaining six figures fit with
these four. The respondent has to find out which two out of the remaining six figures
fit and mark them. The test also comprises a time component: the maximum time span
available for finding the correct solutions is twenty minutes. The test is non-verbal in
character and captures a person’’s ability to abstract, referring to the perception of
relationships between abstract patterns between figures. Such ability corresponds to
Spearman’’s g-factor and Thurstone’’s general factor (see Gottfredson 1999).
18
21. Consistently, the test correlates significantly with the Raven Progressive Matrices
(Drenth, van Wieringen, and Hoolwerf 2001).
Social competence was measured with Shafer’’s (1999) social competence scale.
The instrument is based on Sternberg et al.’’s (1981) social competence scale and
consists of ten items, including ““I deal effectively with people””.
The three thinking styles were measured with three items (executive and judicial
style) and four items (legislative style) taken from Sternberg (1997). Responses were
given on a 7-point scale ranging from ‘‘completely disagree’’ to ‘‘completely agree’’.
Example items are: ““I enjoy working on things that I can do by following directions””
(executive style), ““I like situations where I can compare and rate different ways of
doing things”” (judicial style), and ““When facing a problem, I use my own ideas and
strategies to solve it”” (legislative style).
To test whether the three thinking styles can be differentiated empirically, we
conducted a confirmatory factor analysis (CFA). Satisfactory model fits are indicated
by non-significant chi-square tests, RMSEA values less than .08, and CFI and TLI
greater than or equal to .90 (cf. Marsh, Balla, and Hau 1996). The results show that the
proposed three-factor model provides a satisfactory fit to the data:
2
(32)=62.70,
CFI=.92, TLI=.90, GFI=.93, RMSEA=.07. As all three thinking styles reflect a
person’’s cognitive style of using his/her GMA, we also tested the fit of a one-factor
model for the three thinking styles. The results indicate that such one-factor model
provides an unsatisfactory,
2
(35) = 245.54, CFI=.50, TLI=.36, GFI=.76, RMSEA=.19,
and significantly worse fit than the three-factor model,
2
(3) = 182.84, p < .01.
Sales performance was measured by using the net sales volumes (in Euros) of the
participating salespersons in the year preceding this study. That is, the person’’s sales
19
22. target was subtracted from his/her total sales volume to correct for prize and regional
influences. In Study 1, we used the objective data as recorded by the company.
The descriptives, intercorrelations, and reliabilities of the measures described
above are shown in Table 1.
[Insert Table 1 about here]
Study 1: Results
To test the hypotheses, we carried out a hierarchical linear regression analysis with
sales performance as the dependent variable. In the first step, we included the three
thinking styles, social competence, and GMA as the independent variables. In the
second step, we added the interaction between GMA and social competence. In the
final step, we included the interaction terms of GMA on the one hand and the three
thinking styles on the other hand. Interaction terms were included in the analysis by
adding the multiplicative products of the scores of the interacting variables (Aiken and
West 1991). All variables in the analysis were centered around their means. The results
of the regression analysis are summarized in Table 2.
[Insert Table 2 about here]
GMA, social competence, and the three thinking styles explained a total of six
percent of the variance in salespersons’’ net sales volume. By adding the GMA * social
competence interaction term, an additional two percent of the variance was explained,
F-change = 4.35, p < .05. When adding the interaction effects between GMA and
thinking styles, another six percent of the variance in net sales volume was explained,
F-change = 3.16, p < .05, resulting in a final explained variance of fourteen percent.
Specifically, both an executive and a judicial thinking style had a significant
main effect on salespeople’’s performance ( = .26, p < .01, and
20
= -.19, p < .05,
23. respectively). Salespeople achieved a higher sales volume to the extent that they made
use of an executive thinking style and avoided making use of a judicial thinking style.
More relevant for the present study, a legislative thinking style in interaction with
GMA produced a significant negative effect on performance ( = -.23, p < .01), as
hypothesized. The direction of the effect changes in the interaction between a judicial
thinking style and GMA ( = .19, p < .05), thus resulting in a significant positive effect
on sales performance. In addition, and as predicted, the interaction between GMA and
social competence had a significant positive impact on sales performance ( = .24, p <
.01). The GMA * executive thinking style interaction was not significant ( = -.05).
As recommended by several authors (e.g., Aiken and West 1991), we plotted the
interaction effects for full interpretation of the results: We fixed the contingent variable
(i.e., the software: social competence and thinking styles) at high versus low levels,
with high versus low defined as one standard deviation below or above the mean score.
The corresponding plots are shown in Figure 1. High and low values of GMA, as used
in the figure below, were similarly defined as one standard deviation above or below
the mean value.
[Insert Figure 1 about here]
Consistent with Hypothesis 1, Figure 1 (upper part) shows that GMA has a
positive relationship with sales volume, but only when salespersons are high in social
competence. Salespersons low in social competence, attain lower sales volume with
increasing GMA. A similar pattern can be found for the interaction between a judicial
thinking style and GMA (see middle part of Figure 1). GMA is positively related to
sales performance for individuals who make strongly use of a judicial thinking style. In
contrast, for salespeople who hardly use a judicial thinking style, GMA is negatively
21
24. related to performance. This means that Hypothesis 3 is also substantiated. Finally,
Figure 1 (lower part) also shows the opposite effect for GMA and a legislative thinking
style: GMA is negatively (positively) related to sales volume when legislative thinking
style is high (low), supporting Hypothesis 4. All slopes are significantly different from
zero at the level of p < .05 with the exception of the regression of GMA on
performance for a high judicial thinking style: here, the slope is only marginally
significant (p < .10).
Study 1: Discussion
The findings show that salespeople scoring high on both social competence and GMA
achieved the highest sales performance. It seems that salespeople need both the ability
to systematically analyze and express the strengths of their own solutions (product
space) and understand customers’’ needs and issues such that customers and
salespeople both can co-create a solution. Interestingly, we found that salespeople who
have a high score on GMA and a low score on social competence achieved the lowest
sales performance. Imagine a salesperson that is good at analyzing, codifying, and
expressing information concerning complex business issues, yet for instance is not
aware that this information exceeds the ability (absorptive capacity) of the customer or
is insensitive to the political issues involved in the buying decision process of the
customer. This may make customers feel uncomfortable which, in turn, restrains them
from reframing their own problems or issues causing their actual needs to remain
unexpressed. Casciaro and Lobo (2005) label such salespeople as ““competent jerks””. In
other cases, some customers may feel insulted that they cannot easily follow the
arguments and propositions made by the high GMA salesperson, and -- as an excuse --
22
25. they may categorize the salesperson as abstract, aloof and even politically
inappropriate, causing them to communicate in defensive ways.
We also found that salespeople low on judicial thinking style but high on GMA may be
at a disadvantage: The higher the GMA of the salesperson, the more s/he may provide
abstract and complex solutions to a business problem of the customer yet without placing
them in a specific context. Consequently, it becomes difficult for the customer to understand
the salesperson. Instead, the customer may need concrete and solid business cases or
analogies to better imagine how solutions apply to their own business situations (cf.
Wierenga and van Bruggen 1997; Cross and Sproull 2004), which salespeople low on
judicial thinking yet high on GMA may not be able to provide.
Somehow surprisingly, we found that –– regardless of the GMA of the salesperson –– a
low use of a judicial thinking style lead to a higher sales performance than a high use of a
judicial thinking style. This finding can perhaps be explained by the nature of the specific
sales task investigated in this study. Selling advertisement space, although it may require
judging how a specific ad reinforces other media messages from a firm within a larger media
space, may be conceived of as a well-structured task. Specifically, sales scripts were
available, and salespeople only had a limited number of potential sales options. In this
respect, successful salespeople did not (need to) refer to analogical reasoning and illustrative
cases. This is consistent with two other findings: First, it may explain the finding that the
application of an executive thinking style (i.e., following sales scripts) has a positive (main)
effect on sales performance. Secondly, we also find that a combination of a high legislative
thinking style in combination with a high GMA leads to the lowest sales performance: (too)
creative salespeople seem to over-challenge their customers who may not appreciate (or even
not understand) their associations at all, experience them as ‘‘mental exercises’’, and/or feel
23
26. that they are too far-fetched and away from their actual business problem at hand.
Study 2
As the findings in Study 1 were based on a sample that was entirely collected within one
single company and covered one specific sales task, we investigated in a second study
whether the findings would hold in a more diverse sales sample covering different industries
as well as different, more complex sales tasks. In addition, we also included a number of
control variables such as self-esteem or adaptive selling in this study to allow for a clearer
interpretation of the findings.
Procedure and Respondents
In total, 50 Dutch firms were asked to participate in Study 2. The first contact with the
companies was established through some of their employees (salespeople) who
attended an executive education program in personal selling at the university. Thirtyone firms agreed to participate (response = 62%), and they randomly asked up to four
of their salespeople to participate in the study (total N=107). The sample covered a
wide range of different industries such as banking, consultancy, pharmaceutical
industry, HRM services, and IT. Sales tasks were all business-to-business and involved
the selling of rather complex business solutions (products and services). On an Internet
site, salespeople both filled in the GMA test and the questions about their thinking
styles and social competence. We also sent a short questionnaire to their sales manager
who gave an evaluation of their sales performance. The sample in Study 2 can be
described as follows: two thirds (66%) of the participants were male; 33% were
younger than 30 years, 46% between 30 and 40 years, sixteen percent between 40 and
50 years, and five percent of the participants were older than 50 years. Half of the
24
27. salespeople had completed the equivalent of high school or vocational training; 35%
had graduated from college, and fifteen percent held a university degree.
Measures
The measures used in Study 2 were identical to the ones used in Study 1, with one
exception. Specifically, we used the same measures for the three thinking styles and
social competence. To assess General Mental Ability (GMA) we used the short version
of the ‘‘Test of Non Verbal Reasoning’’ (Drenth 1965; R.B.H. & Co. Inc., New York,
USA), which includes twenty exercises and had to be accomplished within 10 minutes.
Unfortunately, it was not possible to get access to objective sales performance data as
some companies were reluctant to give away this information to academic researchers for
privacy as well as strategic reasons. We therefore asked the corresponding sales manager to
evaluate the sales performance of his/her salespeople in the preceding year. Specifically we
asked the managers to rate their salespeople’’s sales performance compared to the average
salesperson in their company (on a scale from 1=‘‘way below average performance’’ to 7=‘‘way
above average performance’’); this was done to ensure a standardized approach that yields
comparable results across industries and sales tasks. Furthermore, we explicitly instructed the
managers on the evaluation form to base their ratings on the objective sales data of their
salespeople. In our sales performance measure, we focused on sales ratings (that is, attainment
of sales quotas) as we have used a similar objective performance measure in Study 1. Also,
managers had objective data for their salespeople on this factor, and the measure should thus
be less susceptible to individual, subjective rating biases of the manager.
Finally, we included a number of control variables in Study 2 to test whether sales
performance was actually affected by the variables above or rather by other variables from the
25
28. sales literature that may be related to them (see for example Boorom, Goolsby, and Ramsey
1998). Specifically, we included measures of adaptive selling (16 items taken from Spiro and
Weitz 1990), self-esteem (10 items taken from Rosenberg 1965), (dispositional) optimism (6
items taken from Scheier, Carver, and Bridges 1994), and conscientiousness (5 items taken
from John and Srivastava 1999). The reliabilities, descriptives, and correlations of all
variables in Study 2 are presented in Table 3.
[Insert Table 3 about here]
Study 2: Results
To validate the findings of Study 1, we conducted a hierarchical linear regression
analysis that is comparable with the analysis carried out in Study 1, with sales
performance as the dependent variable. The main difference is that we now added
adaptive selling, optimism, self-esteem, and conscientiousness as control variables in
the analysis. Again, interaction terms were included in the analysis by adding the
multiplicative products of the scores of the (mean-centered) interacting variables. The
results of the regression analysis for Study 2 are summarized in Table 4.
[Insert Table 4 about here]
GMA, social competence, the three thinking styles, and the control variables
explained a total of 18 percent of the variance in sales persons’’ sales volume. By
adding the GMA * social competence interaction term, an additional seven percent of
the variance was explained, F-change = 8.86, p < .01. When adding the interaction
effects between GMA and the three thinking styles, another five percent of the
variance in sales volume was explained, F-change = 2.18, p < .05, resulting in a final
explained variance of thirty percent. Only conscientiousness had a significant main
effect on salespeople’’s performance ( = .25, p < .01). Consistent with Study 1, a
26
29. judicial thinking style in interaction with GMA produced a significant positive effect
on performance ( = .24, p < .05), as hypothesized in Hypothesis 3. Next, as predicted
and in line with Study 1, the interaction between GMA and social competence had a
significant positive impact on sales performance ( = .23, p < .05). Thus, Hypothesis 1
is supported. Finally, the interactions between GMA and one of the two other thinking
styles were non-significant. Hypotheses 2 and 4 are therefore rejected.
As in Study 1, we plotted the two interaction effects for full interpretation of the
results by fixing the contingent variable (i.e., social competence and thinking styles) at
high versus low levels, with high versus low defined as one standard deviation below
or above the mean score. High and low values for GMA, as used in Figure 2, were
similarly defined as one standard deviation above or below the mean value.
[Insert Figure 2 about here]
Consistent with Hypothesis 1, GMA has a positive relationship with sales
volume, but only when salespersons are high in social competence (see upper part of
Figure 2). Salespersons low in social competence, attain lower sales volume with
increasing GMA. A similar pattern can be found for the interaction between a judicial
thinking style and GMA: GMA is positively related to sales performance for
individuals who make strongly use of a judicial thinking style (see lower part of Figure
2). In contrast, for salespeople who hardly use a judicial thinking style, GMA is
negatively related to performance. This means that Hypothesis 3 is also substantiated.
All slopes of the regression lines are significantly different from zero at the level of p <
.05 with the exception of the regression of GMA on performance for a high judicial
thinking style: similar to Study 1, here the slope is only marginally significant at a
level of p < .10.
27
30. Study 2: Discussion
The results of the second study –– drawing on a more diverse sample of salespeople
involved in complex sales tasks –– could replicate two of the findings of Study 1. First,
salespeople high on social competence and high on GMA achieved the highest sales
performance. Second, the interaction of a judicial thinking style and GMA had also a
(marginally) significant (positive) effect on salespeople’’s performance. Specifically,
salespeople high on GMA with a high usage of a judicial thinking style performed best.
However, Hypothesis 2 and 4 were not substantiated. In what follows, we will further
elaborate on the commonalities and differences of the findings of our two samples.
General Discussion
As salespeople mostly sell knowledge based solutions nowadays (e.g., Bettencourt et
al. 2002; Vargo and Lush 2004), we suggested that salespeople should possess high
GMA, which allows for quick learning and abstract thinking as key abilities. The
findings of our studies indicate that salespeople high on GMA may indeed be at an
advantage. To the extent that salespeople act as knowledge brokers, cognitive efforts
are also required on the side of the customer: the salesperson and the customer cocreate a business solution by developing a joint understanding of the shared
information and integrating it in a workable solution. Salespeople have to be able to
manage this social-cognitive process to be able to successfully make viable sales
propositions to customers. We proposed that salespeople’’s general mental ability -- the
cognitive hardware -- interacts with specific skills or software (social competence and
thinking styles), and argued that these interactions are able to predict sales
performance. Such a perspective draws upon researchers who argue for a contextual
perspective on intelligence (e.g., Sujan, Weitz, and Kumar 1994; Cron et al. 2005).
28
31. The results of our study indicate two main challenges that salespeople high on
GMA face, if they want to successfully involve the customer in the solution cocreation process. First, salespeople have to be able to translate their solutions to
customers and phrase the content of the solutions such that customers are capable of
expressing their own business issues and experience psychological safety (Edmondson
1999). The more customers feel comfortable (safe) with the salesperson, the better they
can (re-) frame their own business problems and are capable of absorbing how the
developed solutions fit their needs. Salespeople’’s social competence in combination
with their GMA facilitates this socio-cognitive learning process. Second, Axelrod and
Cohen (1999) note that the more complex the solutions being sold, the more people
rely on others to make informed choices. In a knowledge based economy customers
seek to source different opinions and/or experiences with others. When salespeople are
capable to better express the content of their business solutions, customers may (re-)
formulate their business issues better (Cross and Sproull 2004). Salespersons’’ judicial
thinking styles and GMA help them in this endeavor.
An interesting shared pattern of the findings of both studies is that the
relationship between salespeople’’s GMA and their sales performance has a Janus face:
while salespeople high on GMA became top performers when showing high degrees of
social competence or a high judicial thinking style, they also became the worst
performers when not applying the mentioned software sufficiently (i.e., only to a low
extent). The main reason may be that selling knowledge involves the co-creation of
knowledge as one of the main aspects: customers have to be able to structure their
thoughts during sales interactions. Salespeople thus have to create a social comfort
zone, which allows customers to express their needs, ideas, and objections without fear
29
32. of embarrassment. In this sense, avoiding embarrassing customers by acting as a
““competent jerk”” may be one of the most important challenges for salespeople high on
GMA to focus on (Casciaro and Lobo 2005).
Interestingly, the combination of a low GMA and a low social competence came
with relatively high sales performance in Study 1. A possible explanation for this
finding may be that, to participate in the knowledge co-creation process, customers
need to feel psychological safety (Edmondson 1999). Salespeople characterized by low
GMA and low social competence are likely to be perceived as neither intellectually
threatening (not over-challenging customers’’ absorptive capacity) nor socially
threatening (e.g., not engaging in micro-politics in buying centers). Especially in wellstructured sales situations like Study 1 in which the input of salespeople may be less
needed, this may allow customers to comfortably explore and express their actual
needs, which, in turn, facilitates a successful sales interaction.
Even though we could substantiate two of our hypotheses in both samples, two
other of our initial hypotheses were not supported by the data. First, we did not find the
interaction between GMA and an executive thinking style to significantly affect
salespeople’’s performance. Rather, we found a significant main effect of an executive
thinking style in Study 1 that indicates that GMA may play a less crucial role in wellstructured sales tasks. Here, it may be more efficient to develop sales scripts that
salespeople should follow. In case of more complex sales tasks that ask for the
absorption of new knowledge (Study 2) it may be more difficult to create valid sales
script as every customer asks for a unique solution co-creation process that challenges
the absorptive capacity of the salesperson (Cohen and Levinthal 1990).
30
33. Second, we found the interaction between GMA and a legislative thinking style
to be only related to sales performance in Study 1. Again, the specifics of the sales
situation may play a role here. Selling advertising space (Study 1) is a relatively wellstructured task. Developing highly complex and creative business solutions may
therefore be perceived as inadequate by customers and may be detrimental to
salespeople’’s performance. This seemed not to be the case for more knowledge
intensive firms and sales tasks (Study 2). Because of the high complexity of the task
customers may not experience complex and creative solutions of the salesperson as
inappropriate here.
In sum, the findings of our two studies illustrate that the interaction between
salespeople’’s GMA as cognitive hardware and specific skills and capacities as
software adds value to explaining sales performance and provides an interesting,
fruitful avenue for further research. The studies also indicate that the GMAperformance relationship may be contingent on the type of sales task under
investigation (well-structured versus complex).
So what lessons for practitioners can be learned from these findings?
First, selection procedures for sales positions should encompass an IQ test, as
depending on their GMA salespeople should use their software differently to
improve their sales performance. As salespeople high on GMA formed the group
of top performers, firms should hire salespeople with high GMA. Knowledge
based economies are innovative, and the speed by which knowledge needs to be
combined constantly increases. For that reason, smart conversations between
salespeople and customers will become all the more important.
31
34. Second, in both samples salespeople high on GMA and low on social
competence achieved the lowest sales performance. In terms of Casciaro and
Lobo (2005) they may appear as ‘‘competent jerks’’; customers who interact with
salespeople high on GMA may intuitively expect that that they also are socially
competent –– such a Halo effect of intelligence is a well-known phenomenon in
social psychology. Therefore, salespeople should be assessed and tested for their
social competence besides their GMA. As social competence can be learned,
social competence training (especially for those salespeople high on GMA) is
also advisable. From a methodological perspective, role-play training would
seem most adequate to fit these needs.
Third, for more complex sales tasks, using business cases proved to be a
successful sales strategy. Salespeople (high on GMA) therefore should learn to
listen to colleagues’’ business experiences and remember their own concrete
business cases to be able to include them in stories that customers can relate to
(Zaltman 2003). Salespeople should learn to share their stories (success/failure)
with colleagues such that more people in the firm can use them. Similarly,
salespeople could be encouraged to publish in trade journals or write internal
““white papers”” in which they express lessons learned.
Further Research
First, we would like to note that the degree of knowledge intensity varies across
different sales functions. Weitz and Bradford (1999) distinguish different stages in
selling with different degrees of sales task complexity (from provider stage up to procreator stage). Researchers should seek to explore different sales samples that reflect
32
35. these different complexities of sales tasks to further specify how and when GMA
interacts with other skills and capabilities.
Second, another prominent contextual skill that has received attention during the
last years and might interact with GMA is emotional competence (e.g., Goleman
1998). Researchers note that the ability to regulate one’’s emotions is (e.g., Morris and
Feldman 1996) and should be (e.g., Homburg and Stock 2004) an important part of
work, especially for customer-boundary spanners such as salespeople. Emotional
competence helps people to be aware of, regulate, and use their (and others’’) emotions
successfully (Goleman 1998; Saarni 1999). Similar to the line of arguments put
forward for social competence, one may expect that emotional competence also
interacts with GMA for predicting salespeople’’s performance. Research by Cote and
Miners (2006) found evidence that a high emotional competence may compensate for a
lower GMA; we ask researchers to elaborate whether this finding also holds for
salespeople. Similarly, research has found that the combination of integrity and GMA
is more valid as selection criteria than relying on GMA alone (Robertson and Smith
2001). Future research should therefore also investigate integrity as a potential
moderator of the GMA––performance relationship.
33
36. TABLE 1
Means, Standard Deviations, Intercorrelations, and Reliabilities (Cronbach’’s alphas on
diagonal) of the Variables in Study 1, N=171
Mean
SD
1
1 GMA
49.32
12.75
(.87)
2 Social competence
5.62
.68
.03
(.76)
3 Legislative thinking style
5.53
.76
-.01
.33**
(.76)
4 Executive thinking style
4.66
.95
-.08
.08
.34**
(.74)
5 Judicial thinking style
4.84
.89
-.02
.27**
.19*
.30**
(.70)
-.16*
-.01
.03
.14
-.08
6 Sales performance
-1554.17 25845.45
* p < .05 ; ** p < .01
34
2
3
4
5
6
(n.a.)
37. TABLE 2
Findings of the Regression Analysis in Study 1 (Standardized Regression Coefficients)
Dependent variable: Sales volume
Independent variables
Step 1
Step 2
Step 3
-.15
-.12
-.06
.02
.01
.01
Legislative thinking style
-.01
-.01
-.01
Executive thinking style
.17
.20*
-.15
-.15*
Main effects
GMA
Social competence
Judicial thinking style
.26**
-.19*
Interaction effects
GMA x Social competence
.17*
.24**
GMA x Legislative style
-.23**
GMA x Executive style
-.05
GMA x Judicial style
F-value (p-level)
R2
.19*
1.80 (n.s.)
2.26 (p <.05)
2.63 (p <.05)
.06
.08
.14
* p < .05 ; ** p < .01
35
39. TABLE 4
Findings of the Regression Analysis (Standardized Regression Coefficients) in Study 2
Dependent variable: Sales volume
Independent variables
Step 1
Step 2
Step 3
Adaptive selling
-.01
-.09
-.09
Conscientiousness
.20*
.26**
.25**
Optimism
.05
.10
.08
Self-esteem
.25*
.20
.21
GMA
-.04
-.01
-.01
Social competence
.12
.24*
.17
Legislative thinking style
.08
.07
.07
Executive thinking style
-.03
-.01
-.09
Judicial thinking style
.11
.15
.11
.32**
.24*
Control variables
Main effects
Interaction effects
GMA x Social competence
GMA x Legislative style
.07
GMA x Executive style
.15
GMA x Judicial style
.24*
F-value (p-level)
R2
1.90 (p <.05)
2.63 (p <.01)
2.51 (p <.01)
.18
.25
.30
* p < .05 ; ** p < .01
37
40. FIGURE 1
Interaction Effects of GMA on Sales Performance (Study 1)
5000
4000
3000
Sales volume
2000
1000
Low social competence
0
-1000
Low GMA
High GMA
High social competence
-2000
-3000
-4000
-5000
30000
Sales volume
20000
10000
High judicial style
0
-10000
Low judicial style
Low GMA
High GMA
-20000
-30000
GMA
5000
4000
3000
Sales volume
2000
1000
Low legislative style
0
-1000
Low GMA
High GMA
-2000
-3000
-4000
-5000
38
High legislative style
41. FIGURE 2
Interaction Effects of GMA on Sales Performance (Study 2)
7
Sales volume
6
Low social competence
5
High social competence
4
3
Low GMA
High GMA
6
Sales volume
5.5
5
Low judicial style
4.5
High judicial style
4
3.5
3
Low GMA
High GMA
39
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54. Publications in the Report Series Research in Management
ERIM Research Program: “Marketing”
2008
Experts' Stated Behavior
Youssef Boulaksil and Philip Hans Franses
ERS-2008-001-MKT
http://hdl.handle.net/1765/10900
The Value of Analogical Reasoning for the Design of Creative Sales Promotion Campaigns: A Case-Based Reasoning
Approach
Niek A.P. Althuizen and Berend Wierenga
ERS-2008-006-MKT
http://hdl.handle.net/1765/11289
Shopping Context and Consumers' Mental Representation of Complex Shopping Trip Decision Problems
Benedict G.C. Dellaert, Theo A. Arentze and Harry J.P. Timmermans
ERS-2008-016-MKT
http://hdl.handle.net/1765/11812
Modeling the Effectiveness of Hourly Direct-Response Radio Commercials
Meltem Kiygi Calli, Marcel Weverbergh and Philip Hans Franses
ERS-2008-019-MKT
http://hdl.handle.net/1765/12242
Choosing Attribute Weights for Item Dissimilarity using Clikstream Data with an Application to a Product Catalog Map
Martijn Kagie, Michiel van Wezel and Patrick J.F. Groenen
ERS-2008-024-MKT
http://hdl.handle.net/1765/12243
The Effect of Superstar Software on Hardware Sales in System Markets
Jeroen L.G. Binken and Stefan Stremersch
ERS-2008-025-MKT
http://hdl.handle.net/1765/12339
Sales Growth of New Pharmaceuticals Across the Globe: The Role of Regulatory Regimes
Stefan Stremersch and Aurélie Lemmens
ERS-2008-026-MKT
http://hdl.handle.net/1765/12340
When Intelligence is (Dys)Functional for Achieving Sales Performance
Willem J. Verbeke, Frank D. Belschak, Arnold B. Bakker, and Bart Dietz
ERS-2008-034-MKT
http://hdl.handle.net/1765/12633
Path Dependencies and the Long-term Effects of Routinized Marketing Decisions
Paul Farris, Willem J. Verbeke, Peter Dickson and Erjen van Nierop
ERS-2008-035-MKT
http://hdl.handle.net/1765/12634
55. A complete overview of the ERIM Report Series Research in Management:
https://ep.eur.nl/handle/1765/1
ERIM Research Programs:
LIS Business Processes, Logistics and Information Systems
ORG Organizing for Performance
MKT Marketing
F&A Finance and Accounting
STR Strategy and Entrepreneurship