In this paper, the relationship between SOCO and performance will be examined. In addition, also other influences and mediators such as selling skills, job engagement and adaptive selling will be discussed. Therefore, the research question is as follows: What is the performance impact of selling and customer orientation?
In the course of globalization, immense economic growth and new communication technologies, companies are more and more challenged when it comes to the acquisition of customers. Especially, the developments in the communication technology made it a requirement to be present in multiple marketplaces also in foreign countries which raises the question which sales strategies are particularly effective. As sales are the backbone of almost every company and a first estimator of firm performance and profitability, it has major practical implications for managers. There have been many suggestions regarding the benefits of conducting business in a customer-centered fashion. Indeed, in recent years, customer orientation has been the preferred way of handling customers in order to secure orders and elevate customer satisfaction.
Table of Contents
INTRODUCTION
THE SOCO SCALE
CUSTOMER ORIENTATION:
SELLING ORIENTATION:
CUSTOMER ORIENTATION VS. SELLING ORIENTATION
OTHER CONCEPTS AND MEASURES
PERFORMANCE
ADAPTIVE SELLING
SELLING SKILLS
VALUE-BASED SELLING
CUSTOMER ATTITUDE/ SATISFACTION
JOB STRESS AND ENGAGEMENT
LEARNING ORIENTATION
PERFORMANCE ORIENTATION
RESEARCH DESIGN AND HYPOTHESES
RESEARCH OUTCOMES
DISCUSSION OF RESULTS
RESEARCH IMPLICATIONS AND LIMITATIONS
MANAGERIAL IMPLICATIONS AND CONCLUSION
Objectives and Core Themes
This literature review aims to examine the performance impact of two fundamental sales strategies, selling orientation (SO) and customer orientation (CO), as measured by the SOCO-scale. The work investigates how these orientations relate to individual and firm performance, while exploring the mediating roles of adaptive selling, selling skills, and various psychological job states.
- The relationship between SOCO constructs and salesperson performance.
- The impact of learning and performance orientations on sales behaviors.
- Mediating factors such as adaptive selling and technical selling skills.
- The role of job stress and engagement in mediating customer-oriented behaviors.
- Strategic implications for sales management and segmentation in B2B and B2C markets.
Excerpt from the Book
Customer orientation:
Customer oriented selling refers to the extent to which a salesperson helps his customers to make a purchase decision that maximizes their utility and satisfaction (Saxe and Weitz, 1982). Salespeople that are highly customer-oriented try to meet a customer's needs and interests and ensure long-term customer satisfaction. They are also more willing to maintain long-term relationships with their customers. On the strategic side, customer-oriented salespeople are unlikely to apply high pressure and will avoid actions that sacrifice customer needs and satisfaction in order to make an immediate sale (Saxe and Weitz, 1982). Often, such customer oriented behaviors lead to a loss of immediate revenue gains in favor of building and/or maintaining longer-term relationships (Wachner et al, 2009). Customer-oriented salespeople are also unlikely to make use of deceptive or manipulative tactics. Therefore, CO contrasts the traditional high-pressure approach for sales. Generally, SOCO is seen as two ends of a scale in which customer orientation represents high concern for others and selling orientation represents a high concern for self (Blake and Mouton, 1970). In addition, CO is also associated with “an emphasis on learning, natural curiosity and opportunity recognition” (Goad and Jaramillo, 2014, p. 285).
Summary of Chapters
INTRODUCTION: Outlines the significance of sales strategies in a globalized economy and introduces the SOCO-scale as the fundamental framework for analyzing the relationship between selling behavior and performance.
THE SOCO SCALE: Details the conceptual development of the SOCO measure by Saxe and Weitz, including its evolution into short-form constructs used for empirical research.
OTHER CONCEPTS AND MEASURES: Provides definitions of key performance metrics and related concepts such as adaptive selling, selling skills, job engagement, and value-based selling.
RESEARCH DESIGN AND HYPOTHESES: Reviews the methodology of examined studies, including meta-analyses and structural equation modeling, while presenting the specific hypotheses regarding SOCO and performance.
RESEARCH OUTCOMES: Evaluates the empirical findings regarding the effects of selling and customer orientation on performance and the mediating influences of adaptive selling and selling skills.
DISCUSSION OF RESULTS: Summarizes the implications of the findings for future research and provides specific managerial recommendations for sales hiring and training practices.
Keywords
SOCO-scale, Customer Orientation, Selling Orientation, Sales Performance, Adaptive Selling, Selling Skills, Value-Based Selling, Job Engagement, Role Ambiguity, Role Conflict, Learning Orientation, Meta-analysis, B2B, B2C, Sales Management
Frequently Asked Questions
What is the core focus of this publication?
The paper focuses on the performance impact of two contrasting sales strategies: customer-oriented selling and selling-oriented selling, as defined by the SOCO-scale.
What are the central thematic fields covered?
The central themes include sales performance metrics, the impact of individual personality traits (such as learning orientation), and the mediation of sales effectiveness through skills and adaptive behavior.
What is the primary research question?
The research question is: "What is the performance impact of selling and customer orientation?"
Which scientific methods are primarily utilized in the analyzed papers?
The analyzed papers utilize various methods, including meta-analyses using the Hunter and Schmidt random-effects model, structural equation modeling (SEM), confirmatory factor analyses (CFA), and multi-level regressions.
What topics are addressed in the main body of the work?
The main body treats the conceptual definitions of SOCO, the relationship between SOCO and performance, the role of mediators like selling skills and adaptive selling, and the organizational antecedents of these behaviors.
Which keywords best characterize this research?
Key terms include SOCO-scale, customer orientation, selling orientation, adaptive selling, job stress, and sales performance.
Is there an "optimum" level of customer orientation?
Yes, research suggests that the relationship is non-linear and takes the shape of an inverted U, implying that there is an optimal level of customer orientation depending on product importance, individualization, and market competitiveness.
How does a salesperson's selling skill level affect the impact of their sales strategy?
The paper finds that a sales orientation is more effective when a salesperson has low selling skills, whereas customer orientation produces higher performance when accompanied by high selling skills.
Are there differences between business and consumer markets regarding selling orientation?
Yes, the meta-analysis by Goad and Jaramillo (2014) indicates that selling-oriented practices have a negative impact on performance specifically in business markets (B2B), while this effect is not statistically significant in consumer markets.
- Quote paper
- Henry Müller (Author), 2019, Performance Impact of Selling and Customer Orientation, Munich, GRIN Verlag, https://www.grin.com/document/539388
