Salesperson Attributes in Adaptive Selling
Salesperson Attributes in Adaptive Selling
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Piyush Sharma
Curtin University, Bentley WA 6102, Australia
ABSTRACT
1
INTRODUCTION
Under current turbulent economic times, customers search for greater value and shop
more carefully and deliberately; resulting in increased competition, especially in the retail and
service industries, as the customers become more sophisticated and demanding (Grewal et al.,
2009). Therefore, in order to maintain their competitiveness, retailers have to meet customers’
needs and to differentiate themselves by offering good customer service and unique shopping
experience to every customers in order to maintain long term relationship (Karmarkar, 2004).
Service organizations are unique as the services they deliver are intangible (Zeithaml et
al., 1985). Service employees need knowledge and access to information to help solving
customer problems, and they need to be able to deal with angry customers, even in situation
where the customer is rude, the employee is exhausted, or both (Berry et al., 1994). Frontline
salespersons play in important role not just in selling but also providing service, answering
queries and handling complaints; in fact, they represent the organization’s face to the customers
In other words, the quality of service provided by the salesperson is as important as the
quality of the products sold by them. Prior research and service managers have tried to identify
and validate those salesperson characteristics that positively affect performance outcomes (Park
and Holloway, 2003). The study of factors that drive performance of salespeople, and how these
factors vary across different contexts, are essential for both researchers and managers in both
sales and marketing functions (Verbeke, Dietz and Verwaal, 2011). However, there is hardly any
research that studies salesperson characteristics, their performance behavior and important
2
We address this important research gap by introducing a comprehensive model with four
three service performance behaviors (service manner, extra role and need identification) and
three important outcome behaviors (willingness to disclose, customer satisfaction and behavioral
intentions). We test this model using a field-survey with actual retail customers in Hong Kong.
Salesperson Characteristics
variables associated with it, including social competence, intellectual competence, concern for
others, integrity, and psychological stability (Eagly et al. 1991), as well as sales performance
(Anderson, 1995). More recently, others argue that besides physical attractiveness, other
variables may also affect sales performance, including communication ability and likeability -
and trustworthiness - based on integrity and psychological stability (Ahearne et al. 1999).
which the salesperson is perceived by the customer as possessing an appealing and pleasing
physical appearance (Ahearne et al. 1999). Gulas and McKeage (2000) argue that there is a
research with neuroimaging devices also shows that a high level of physical attractiveness of a
stimulus face elicits different brain activity than a low level of physical attractiveness of a
3
Dion et al., (1972) summarize one of the most widely cited conclusions from research on
physical attractiveness as, "what is beautiful is good" (p. 285). This statement links beauty and
goodness to suggest the existence of a stereotype whereby physically attractive individuals are
believed to possess a wide variety of positive personal qualities and successful life. Hatfield and
Sprecher (1986) even wrote that "people believe good-looking people possess almost all the
virtues known to humankind". Prior research uses three major theories to explain this stereotype,
selling is a communication process during which the source (firm), the communicator
(salesperson), the message (presentation), and receiver (prospect) all can influence the sales
outcome. Communication skills include listening to the prospect’s description of problem and
salesperson’s ability to sense prospect’s predispositions; which are important social competences
that may affect sales performance (Eagly et al, 1991; Anderson, 1995). Hence, communication
ability is defined as the effective presentation of one’s case to customer, which involves tailoring
the sales call to meet customers’ needs, listening and making effective use of time, and
transferring clearly the intended information to customer (Ahearne, Gruen and Jarvis, 1999).
alter their sales behavior during a customer interaction or across customer interactions based on
perceived information about the nature of selling situation (Weitz, Sujan and Sujan, 1986).
Salespersons who gather more customer information about the prospect can customize the
content and format of their messages for more effective communication (Franke and Park, 2006).
Coulter and Coulter (2003) argue that both performance-related competence (e.g. competence
and customization) and personality-related competence (e.g. similarity) are antecedents of trust.
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Perceived Expertise (PEX): Perceived expertise of the salesperson is defined as the
extent to which a salesperson is viewed as having knowledge regarding the application and
attributes of her or his product, competing products, and of the customer’s business (Ahearne,
Gruen and Jarvis, 1999). Prior research shows a positive influence of perceived expertise on a
wide range of sales outcomes, including customer satisfaction, trust and productivity.
Perceived Trustworthiness (PTW): Trust is defined as the belief that the exchange party
is able to fulfill its obligations reliably and confidently, is motivated to seek mutually beneficial
gains, and will refrain from abusing the relationship (Cho, 2006, p. 26). Dwyer et al (1987)
found that trust could reduce tensions and conflicts between firms, facilitate information
Sirdeshmukh et al. (2002) show that trust plays a critical role in building and maintaining
Competence refers to the degree to which partners perceive each other as having the skills,
abilities and knowledge for effective task performance (Smith and Barclay, 1997). Benevolence
refers to the behaviors that reflect the underlying motivation to place customer’s interest ahead of
self-interest (Sirdeshmukh et al, 2002). Trust in an exchange partner reduces perceived risk,
which in turn may lead to greater willingness of self disclosure (Cho 2006).
Personal selling is widely adopted at retail channels despite being considered a highly
expensive (Roman and Martin, 2008) yet effective (Spiro and Weitz, 1990) marketing vehicle.
In the sales interaction process, customers notice employee’s service manner in the form of facial
5
expressions, bodily gestures, tone of voice, and language (Mattila and Enz, 2002), which affect
how customers evaluate their experience (Pugh, 2001). Customers who evaluate the salesperson
more positively would perceive better observable employee service behavior, including service
manner, need identification (Lloyd and Sheriff, 2011) and discretionary behaviors to take extra-
role beyond formal role requirement to serve customer (Bettencourt and Brown, 1997).
Perceived service manner (PSM): These are behaviors that salespersons demonstrate to
foster interpersonal relationships with the customers, which facilitates interaction with the
customer in a friendly and enthusiastic manner (Lloyd and Luk, 2011). It relates to the
congeniality dimension on the service employee’s positive attitude and warm temperament,
which makes them experience empathy for the customer (Winsted 2000).
Extra role behavior (ERB): These behaviors refer to service performance going beyond
the call of duty to serve customers, and to contribute to service excellence to the company
(Bitner 1995). Bettencourt and Brown (1997) propose that extra-role service behavior
encompasses the ‘little extras’ and the ‘spontaneous attention’ that service employees direct at
customers during the service encounters. Extra-role performance not only influences evaluations
of salespeople (Podsakoff and MacKenzie 1994) but also overall organizational effectiveness
Need identification behaviors (NIB): In the adaptive selling context, salespeople need to
ask relevant questions and anticipate the preferences of the customer in order to identify the most
suitable product or service offering for them (Lloyd and Luk, 2011). Sharing of information
between the salesperson and the customer is an integral part of this process.
Based on the above, we posit that the four attributes of salespersons, namely perceived
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have a positive impact on service manner, extra role behaviors and need identification by the
interest to acquire more knowledge about customers’ preferences to better meet their needs, to
enhance customer service, and to explore more opportunities to introduce new products and
services (White, 2004). Deighton (1996) argues that getting more customer information would
enable firms to pursue information-based relationship, and likely to achieve more efficient
targeting, more tailored offerings and greater customer retention. Collins and Miller (1994)
argue that self disclosure plays a central role in development and maintenance of relations.
behaviors and activities that will be undertaken, the capacity to engage in a wide range of selling
behaviors and activities, and the alteration of sales behaviors and activities in keeping with
situational considerations” (Sujan, Weitz, and Kumar, 1994). In the adaptive selling context,
salesperson can adapt their sales message based on information provided by the customer and
nature of the selling situation. Hunter and Perreault (2006) propose that salespeople will be more
7
capable of practicing adaptive selling if they have more precise customer information during the
interaction as it can help them customize their sales message, and recommend products and
service that meet customers’ specific needs. Price et al (1995) argued that self-disclosure is
needed to facilitate sharing of information between the salesperson and the customer. Adaptive
selling leads to strong sales performance (Boorom et al, 1998; Frank and Park 2006).
Based on above discussion, we posit that customers who evaluate the salesperson’s
service behavior more positively are more willing to disclose personal information during the
interaction process. By knowing customers’ needs, more customized services can be offered and
customers would evaluate the counter experience more positively and they are more willing to
engage in long term relationship with the salesperson. These evaluation and judgment processes
identification behavior.
situational factors and other personal factors (Anderson and Sullivan, 1993). Rust and Oliver
well as an emotion-based response to a service, and also a customer’s belief on the probability of
a service leading to a positive feeling. We posit that salesperson’s service manner, extra-role and
need identification behaviors would be positively related with customer satisfaction, as follows:
8
Behavioral Intentions (BEH): Behavioral intentions such as repurchase intentions, word
of mouth, loyalty and complaining behavior are important for service providers, as satisfied
customer would likely stay with a company for a long period, and contribute to the profitability
of the company by repeated purchase and spreading good experience to others (Zeithaml, Berry
and Parasuraman 1996). We hypothesize that customers are more likely to disclose personal
information to salespersons with more favorable service behaviors and this facilitates adaptive
selling. Specifically, with more information about customer’s needs, the salesperson can
develop and deploy sales presentation tailored to characteristics of each potential customer and
propose products and services that meet customers’ needs and wants (Roman and Iacobucci,
2010).
All these hypotheses are shown graphically in Figure 1. Next we describe a field-survey
based study conducted with retail shoppers in Hong Kong, to test these hypotheses.
METHODOLOGY
Empirical setting
We conducted this study at the retail outlets of a major telecom company in Hong Kong,
as the frontline salespeople in these outlets not only sell products (e.g. mobile phones) and
services (e.g. phone and broadband plans) but also handle customer enquiries and complaints,
thus providing a broad range of customer interactions (Bettencourt and Brown, 1997). Moreover,
9
in this industry, salespeople need to use adaptive selling approach in their interactions with
potential customers, which means that the sales message and service offers change dynamically
based on the needs and wants communicated by customers. Finally, service encounters in retail
telecom outlets involve face-to-face interactions between customer and frontline salesperson,
giving the customers a chance to assess the various salesperson characteristics directly.
We randomly selected 12 retail outlets (50% small to medium and 50% large size) from
the company’s network of 60 retail outlets spread across all the districts in Hong Kong, to ensure
that the responses of customers from different segments across Hong Kong could be collected.
The unit of analysis in this study is a ‘unique customer visit’. We collected a total of 186
We used a structured questionnaire with three parts – Part One, with general questions
about the customer’s current visit, such as purpose of visit, nature of products and services of
interest, whether purchase was made, time spent etc.; Part Two, with questions about customer’s
perception about the visit experience based on the measurement scales indicated in the later
section of this paper, and Part Three, with demographic information such as age, gender,
education, and occupation. We first prepared an English version of the questionnaire and then
translated into Chinese by one graduate student and then back-translated into English by another
graduate student, both unaware about the purpose of this study and unrelated to this project. We
10
found no major discrepancies between the original and back-translated versions.
The final questionnaires were dispatched to the managers of the retail shops selected for
this study. To increase the reliability and generalizability of this research, we selected only those
participants (customers) who interacted with the salesperson for at least 5 minutes, regardless of
their visit purpose and whether real purchases were made. Upon completion of the questionnaire,
We included the scales used by Ahearne et al. (1999) to operationalize the four
Perceived employee service behavior was measured using the service manner behavior and need
identification behavior scales adapted from Lloyd and Luk (2011) and extra role service behavior
was adapted from Bettencourt and Brown (1997). Customer satisfaction and behavioral
intentions were measured using scales developed by Ramsey and Sohi (1997), and willingness to
disclose with a scale used by Cho (2006). We also included gender, age, education, visit purpose
and overall impression of the shop as control variables for the customers.
We used the well-established two-step process to analyze our data, testing our
measurement model first and then the structural model, using Structure Equation Modeling
(SEM) with AMOS 18.0. We first tested the reliability of all the measures used in this study
11
using Cronbach’s alpha and found all of them higher than the minimum recommended value of
0.70 (Nunnally, 1978), indicating good internal consistency among the items of each construct.
We then assessed the relative fit through examination of item loadings of all factors. The results
demonstrate that all items loaded significantly on their respective variable with standardized
loadings > 0.70 (Hair et al, 2005). Table 2 shows the scale summary with the mean, standard
All the parameter estimates are large with significantly large t-values (9.8 to 30.6)
(Anderson and Gerbing, 1988) with all the item-to-total correlations (0.71 to 0.95) and average
variance extracted (0.65 to 0.91) higher than 0.5, showing high convergent validity (Fornell and
Larcker, 1981). Finally, discriminant validity is confirmed as the average variance extracted in
each factor exceeds its squared correlations with all other constructs (Fornell and Larcker, 1981).
We next examined the squared multiple correlations of all the scale items and eliminated four
items with values of less than 0.40 (Nunnally, 1978). The revised model provided a reasonably
good fit to the data (Chi-square = 1165.2, degrees of freedom = 634, p <0.000; CFI = 0.93, TLI =
Finally, we used the structural model to test all the hypotheses. For H1, we found that
perceived physical attractiveness has a positive relationship with salesperson’s extra role (H1b, β
= 0.172; p < 0.05) and need identification (H1c, β = 0.063; p < 0.10) behaviors but not service
manner (H1a). Similarly for H2, communication ability has a positive relationship with only
service manner (H2a, β = 0.325; p < 0.001) and need identification (H2c, β = 0.303; p < 0.001)
12
but not extra role (H2b) behaviors of the salesperson. For H3, we found positive relationship
between perceived expertise and service manner (H3a, β = 0.359; p < 0.001), extra role (H3b, β
= 0.347; p < 0.001) as well as need identification (H3c, β = 0.148; p < 0.05). For H4, we found a
significant positive relationship between perceived trustworthiness and service manner (H4a, β =
0.183; p < 0.01) and need identification (H4c, β = 0.304; p < 0.001) but not with extra role
behavior (H4b). Thus, we found mixed support for H1, H2 and H4 and full support for H3.
For the next set of hypotheses, we tested the influence of the three service behaviors on
three customer outcomes. For H5, we found that customer’s willingness to disclose personal
information was influenced by the salesperson’s service manner but in a negative direction (H5a,
β = -0.860; p < 0.001), contrary to our hypothesis. However, customer’s perception about the
salesperson’s extra role behavior (H5b, β = 0.281; p < 0.01) as well as need identification had a
strong positive effect on their willingness to disclose (H5c, β = 0.837; p < 0.001). Interestingly,
customer satisfaction was influenced by only need identification (H6c, β = .931, p < .001) and
not service manner (H6a) or extra role behavior (H6b). Similarly, behavioral intention was
affected only by need identification (H7c, β = .932, p < .001) and not by service manner (H7a) or
extra role (H7b) behaviors. Hence, we got only partial support for H5, H6 and H7.
DISCUSSION
In this study, we examine two sets of influences in an adaptive selling context. First, we
assessed the impact of four salesperson’s attributes as perceived by their customers (physical
13
three types of service behaviors (service manner, extra role and need identification). Second, we
explored the influence of customer perceptions about service behaviors on three important
behavioral intentions). In order to explore these relationships, we used a field-survey design with
actual customers in a real business environment, namely retail telecom outlets in Hong Kong.
The results from our field-survey seem to provide a preliminary support to our basic
premise as mentioned above. Specifically, we found that among all the four salesperson
characteristics included in our study, only their perceived expertise seems to affect customer
perceptions about all the three types of their subsequent service behaviors; whereas the other
affect some of the subsequent customer perceptions. This is an interesting finding because in the
context of retail telecom services, the customers may rely more on the perceived expertise (as
reflected in their knowledge about various plans and offers, availability of the network in
different locations and its technical aspects) rather than how good the salesperson looks or how
well s/he talks. Moreover, even trustworthiness does not seem to be a very important variable as
the service encounters happen in the retail outlets of a reputed and trusted telecom company in
Hong Kong and all the salespersons are known to represent this company.
A further look at the strength of associations among the four salesperson characteristics
with each other shows that the association between perceived communication ability and
trustworthiness is much stronger compared to physical attractiveness and expertise. This finding
may be particularly useful in the adaptive selling environment wherein it seems that rather than
only look good, the salespersons should also demonstrate their ability to identify their customers’
needs, show good communication skills throughout the interaction process, possess the required
14
knowledge and expertise about the products and service handled by them, and present
themselves as a trustworthy salesperson. This may help them customize their sales presentation
and recommend products and services that satisfy a particular customer’s specific requirements.
After the initial contact, the salespersons serve the customer and identify the products and
services that best fits customer needs. For example, they may recommend either a home
since both services offer broadband access. To achieve higher successful rate by introducing the
key benefits that appeal to that specific customer, the salesperson would customize the sales
message before presenting to the customer. We argued that during this interaction, an evaluation
and judgment process would take place, where the customer would evaluate the salesperson in
terms of his/her attitude and performance, and their own satisfaction level. Specifically, we
hypothesized that the three types of service behaviors (service manner, extra role and need
Our findings show that customers’ perceptions about the salesperson’s service behavior
play an important role on how they evaluate their shopping experience and their subsequent
behavioral intentions towards the salesperson and the company. Specifically, our result show
that extra role and need identification behaviors of the salesperson have a positive influence on
the customer’s willingness to disclose personal information, whereas perceived service manner is
negatively associated with disclosure. While the first two findings are as expected, the third
effect on customer’s willingness to disclose personal information to facilitate the selling process.
However, prior research also shows that customers find it rather risky to disclose their personal
information to salespeople (Luo, 2002). Others argue that people tend to disclose to those whom
15
they trust and like, which may not be true with salespersons (Jourard 1964; Worthy et al. 1969).
evaluation and judgment processes. A salesperson’s ability to elicit personal information from
customer is critical in adaptive sales, so that they can change their sales messages dynamically
based on customer needs. By knowing more about customer’s expectation and the services they
need, salesperson can identify the appropriate products and service from the company’s service
offerings, and to prepare more customized selling scripts and messages to present to customers.
This is probably why in our study; service manner (a seemingly superficial act by the salesperson)
did not have a significant influence, unlike extra role and need identification behaviors (which
Similarly, we found that only customer’s perception about the salesperson’s need
identification behavior (and not service manner and extra role) have a strong positive influence
on customer satisfaction. In other words, if customers perceive that the salesperson is able to
correctly identify their needs, they are likely to evaluate their shopping experience more
positively resulting in a higher level of satisfaction. This is particularly true in adaptive selling
environment where salesperson should adjust their sales presentation to recommend products and
services that meet customers need. Hence, it is more important that salespersons should
demonstrate their ability to proactively identify customer’s needs rather than just show courtesy
Finally, we found that both perceived extra role and need identification behaviors of the
who perceive the salesperson to make extra efforts to serve them and identify their needs are
more likely to purchase from them and patronize them again. This is also an important finding
16
because it shows a direct link between customer perceptions about a salesperson’s extra role and
need identification behaviors and their own behavioral intentions. Therefore, managers would
find it useful to train their frontline sales and service employees to learn these important skills.
Interestingly, salesperson’s service manner behavior again does not seem to be important enough
Overall, our research highlights that in today’s increasingly complex and competitive
marketplace, managers need to understand that it is not enough to hire good looking frontline
sales and service employees with good communication skills; instead they also need to help their
employees develop the expertise needed to do their job and address customers’ queries so as to
develop trustworthiness, especially in an adaptive sales context. Moreover, it is not enough for
the frontline employees to be well-dressed, well-mannered and polite; but they also need to make
the extra efforts to understand and satisfy their customers’ actual needs, which makes their
customers more willing to disclose their personal information, to be more satisfied and more
likely to make the purchase and patronize again, possibly becoming loyal customers over time.
Our study has some limitations that future research may address. First, our study was
conducted in a single service industry in a single city hence our model can be tested in diverse
research and cultural settings. Future research may also include other salesperson characteristics
such as their personality traits and cultural orientations. Finally, we study only the customers’
perspective in this study, hence it would be useful to the employees’ point of view as well.
17
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Figure 1 – Conceptual Model
Physical H1 (+)
Attractiveness
H5 (+)
Service Willingness
Manner to Disclose
H2 (+)
Communication
Ability H6 (+)
Extra Role Customer
H3 (+) Behavior Satisfaction
Perceived
Expertise H7 (+)
Need Behavioral
Identification Intentions
H4 (+)
Perceived
Trustworthiness
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Table 1 – Sample Profile
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Table 2 - Scale Summary
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18. I am satisfied with the level of service this person has 0.97 8.50 1.38 0.87
provided
19. In general, I am pretty satisfied with my dealings with 0.97 8.58 1.37 0.88
this salesperson
Behavioral intentions (Ramsey and Sohi, 1997) - Reliability (α) = 0.98
20. It is probable that I will contact this salesperson again 0.92 8.40 1.64 0.93
21. I am willing to discuss business with this salesperson 0.93 8.48 1.61 0.94
again
22. I plan to continue doing business with this salesperson 0.98 8.41 1.61 0.95
23. I will purchase from this salesperson again 0.98 8.41 1.61 0.95
Service Manner Behavior (Lloyd and Luk, 2011) - Reliability (α) = 0.95
24. The service employee showed patience 0.91 6.17 0.82 0.86
25. The service employee was helpful 0.88 6.17 0.88 0.85
26. The service employee smiled at me 0.82 6.16 0.91 0.83
27. The service employee was polite 0.84 6.30 0.81 0.82
28. The service employee was relaxing to interact with 0.82 6.16 0.97 0.80
29. The service employee showed passion for their job 0.78 6.15 0.84 0.78
30. The service employee was cheerful 0.78 6.13 0.87 0.78
Need identification Behavior (Lloyd and Luk, 2011) - Reliability (α) = 0.85
31. The service employee understood my needs 0.75 6.16 0.88 0.71
32. The service employee was knowledgeable 0.76 6.20 0.87 0.71
33. The service employee anticipated my needs 0.84 6.09 0.84 0.71
Extra-Role Service Behavior (Bettencourt and Brown, 1997) - Reliability (α) = 0.94
34. Voluntarily assists customers even if it means going 0.76 5.62 1.13 0.75
beyond job requirements.
35. Helps customers with problems beyond what is expected 0.83 5.67 1.06 0.81
or required
36. Often goes above and beyond the call of duty when 0.91 5.42 1.25 0.87
serving customers
37. Willingly goes out of his/her way to make a customer 0.91 5.65 1.14 0.87
satisfied
38. Frequently goes out the way to help a customer 0.95 5.49 1.18 0.90
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Table 3 – Hypotheses and Results Summary
# p < 0.10, * p < 0.05, ** p < 0.01, *** p < 0.001, all two-tailed
NS = Not Supported
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