The future of buyer-seller interactions: a conceptual framework and research agenda.

The revolution in information availability and the advances in novel interaction technologies have ushered in two major shifts that call into question the traditional assumptions of buyer-seller interactions. First, buyer-seller information asymmetry has greatly decreased in many interactions. Second, face-to-face communication is no longer the main format of buyer-seller interactions. In this article, the authors review empirical research on how these shifts have changed buyer-seller negotiations, an important type of buyer-seller interactions. Several insights arise from this review. First, the shifts have caused fundamental changes in buyers' and sellers' roles, power, and aspirations and information processing. Second, the shifts and these fundamental changes together cause major changes in buyer-seller interactional processes and outcomes, including (1) change in buyers' attitude and behavior, (2) change in sellers' effectiveness in interacting with buyers, and (3) change in buyer-seller interactional processes. Based on these insights, the authors develop a research agenda to guide the reexamination of existing theories and the development of new theories of buyer-seller interactions.

Motivating salespeople: what really works.

No sales force consists entirely of stars; sales staffs are usually made up mainly of solid perfomers, with smaller groups of laggards and rainmakers. Though most compensation plans approach these three groups as if they were the same, research shows that each is motivated by something different. By accounting for those differences in their incentive programs, companies can coax better performance from all their salespeople. As the largest cadre, core performers typically represent the greatest opportunity, but they're often ignored by incentive plans. Contests with prizes that vary in nature and value (and don't all go to stars) will inspire them to ramp up their efforts, and tiered targets will guide them up the performance curve. Laggards need quarterly bonuses to stay on track; when they have only annual bonuses, their revenues will drop 10%, studies show. This group is also motivated by social pressure-especially from new talent on the sales bench. Stars tend to get the most attention in comp plans, but companies often go astray by capping their commissions to control costs. If firms instead remove commission ceilings and pay extra for overachievement, they'll see the sales needle really jump. The key is to treat sales compensation not as an expense to rein in but as a portfolio of investments to manage. Companies that do this will be rewarded with much higher returns.

A longitudinal cross-level model of leader and salesperson influences on sales force technology use and performance.

The authors examined the influence of the introduction of a new suite of technology tools on the performance of 592 salespersons. They hypothesized that the salespersons' work experience would have a negative effect on their technology self-efficacy, which in turn would relate positively to their use of technology. Sales performance was hypothesized to be positively related to both past performance and the use of new technology tools. Further, the authors hypothesized that leaders' commitment to sales technology would enhance salespersons' technology self-efficacy and usage, and leaders' empowering behaviors would influence salespersons' technology self-efficacy and moderate the individual-level relationships. Hierarchical linear modeling analyses confirmed all of the hypothesized individual-level relationships and most of the cross-level relationships stemming from average leader behaviors. In particular, empowering leadership exhibited multiple cross-level interactions, as anticipated. Results are discussed in terms of the importance of social-psychological factors related to the success of sales force technology interventions.

To empower or not to empower your sales force? An empirical examination of the influence of leadership empowerment behavior on customer satisfaction and performance.

This research focuses on the impact of leadership empowerment behavior (LEB) on customer service satisfaction and sales performance, as mediated by salespeople's self-efficacy and adaptability. Moreover, the authors propose an interactive relationship whereby LEB will be differentially effective as a function of employees' empowerment readiness. The authors' hypotheses are tested using survey data from a sample of 231 salespeople in the pharmaceutical field, along with external ratings of satisfaction from 864 customers and archival sales performance information. Results indicated that contrary to popular belief, employees with low levels of product/industry knowledge and low experience benefit the most from leadership behaviors that are empowering, whereas high-knowledge and experienced employees reap no clear benefit. The authors conclude with directions for future research and application.

Antecedents and consequences of customer-company identification: expanding the role of relationship marketing.

This article presents an empirical test of organizational identification in the context of customer-company (C-C) relationships. It investigates whether customers identify with companies and what the antecedents and consequences of such identification are. The model posits that perceived company characteristics, construed external image, and the perception of the company's boundary-spanning agent lead to C-C identification. In turn, such identification is expected to impact both in-role behavior (i.e., product utilization) as well as extra-role behavior (i.e., citizenship). The model was tested in a consultative selling context of pharmaceutical sales reps calling on physicians. Results from the empirical test indicated that customers do indeed identify with organizations and that C-C identification positively impacts both product utilization behavior and extra-role behavior even when the effect of brand perception is accounted for. Second, the study found that the organization's characteristics as well as the salesperson's characteristics contributed to the development of C-C identification.