Salesperson's customer orientation: conceptualization, scale development and impact in selling situations

Abstract

The practice of marketing concept has been widely studied, and one of the important themes within this context is the salespersons orientation while interacting with customers in the selling situations. Saxe and Weitz (1982) conceptualized and developed a scale to measure selling orientation vs. customer orientation (SOCO), which has been extensively studied in literature (e.g., Kennedy, Lassk, and Goolsby, 2002; Brady and Cronin, 2001; Brown, Mowen, Donavan, and Licata, 2002). However, recent scholars point to the fuzziness in the underlying dimensions of customer-oriented selling as measured using SOCO (e.g., Schwepker, 2003).This research examines these concerns, and develops and validates a new multi-dimensional scale to measure salespersons customer orientation using synthesis of literature, qualitative studies, and established scale development procedure using multiple samples from customers and salespersons. Based on extensive review of literature, we conceptualize salespersons customer orientation as a multi-dimensional construct. To validate the proposed construct, we carried out in-depth interviews with 17 salespersons, and sales managers, two focus group discussions, and four live case studies on salespersons and customers experience in sales interactions. Using a triangulation of literature synthesis, and different qualitative studies, we conceptualized salespersons customer orientation as consisting of six dimensions, namely, gathering and disseminating information to customers, understanding customer needs, fulfilling customer needs, delivering value to customers, sustaining customer relationships, and building customer satisfaction. We followed Churchills (1979) 8-step process to develop and validate a multi-dimensional scale. First, an initial item pool of 140 items was generated based on the review of literature, and qualitative studies. This was then reduced to a pool of 55 items using item classification and rating task carried out by 10 experts. This pool of items was subsequently reduced to a smaller pool of 37 items based on inputs from two groups consisting of 15 customers in selling, and non-selling situations. The 37 items were then pretested with 25 customers. We then collected development sample data using a convenience sampling method from 367 individual customers, and 248 business customers in Ahmedabad. Exploratory factor analysis (EFA) with principal axis factoring method separately for both samples suggested that salespersons customer orientation has three dimensions. Out of these, two dimensions, namely, developing relationships, and building customer satisfaction, are common across individual customers as well as business customers. The 37 scale items were then modified and converted to salespersonHs perspective, and after pretest in three iterations with 15 salespersons, 30 items were finally retained. Data was collected using convenience sampling method from salespersons working for 17 private sector companies, and two public sector insurance companies in Ahmedabad. The development sample consisted of 150 salespersons. EFA, and item-level analysis suggested that the salespersonsH customer orientation construct has eight statistically, and substantively significant items representing three dimensions: (1) understanding customer needs, (2) providing information, and (3) building customer relationships. Confirmatory factor analysis (CFA) with structural equation modeling using an independent sample of 230 salespersons validated the results obtained from EFA. The scale for measuring salespersons customer orientation thus developed consists of 8 items representing three dimensions, which has statistically robust psychometric properties. The study contributes by reconceptualizing the underlying dimensions of salespersons customer orientation, and by developing, and validating a short, multi-dimensional scale with robust psychometric properties. Additionally, this thesis also provides insights on dimensions of salespersons customer orientation as perceived by customers, and salespersons. The study has several important managerial implications. The new scale can be used by sales managers as a useful diagnostic tool to identify dimension/s that impede salespersons performance, and accordingly customize their training programs. It can also be used as a performance management mechanism, and as a tool for selection of salespersons.