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AVR Mahadev, M.Sc, PGDBM1
Research Scholar, Management studies, Jain University, Email: facultym@gmail.com*
Faculty – CMS B-School, Jain University, Bangalore
* Please contact this author for any correspondence on the article
Management Style of an organization – its implications on being
an Enterprise salesperson’s customer
Abstract
This paper attempts to measure the attitude of the Enterprise salesperson towards their customers.
Their predisposition if any, can be a hindrance in making a sales interaction successful. The study
thus undertaken has revealed the intensity of such predisposition among the salespersons on the
factor of the management style, the enterprise is known or assumed to have. This leads to
classifying the customers as a preferred customer or a non-preferred customer based on the data
known of the enterprises.
It has been found that there is evident discrimination of customers by the enterprise salespersons.
The intensities of these discriminations varied across different enterprise salespersons studied. It
was also found that the intensity of the discrimination between preferred and non-preferred
customers was varying across the industries for the factors of discrimination.
The bias thus exhibited by the salespersons is more because of the predisposition they have
towards the customers. This demonstrates the very clear case of a preset mind influencing the
behavior of the salespersons.
As has been studied, this paper details the findings in the factors that the enterprise salespersons
have in the classification of enterprise customers to be preferred or non-preferred customers. The
style of management in the organization does have an impact on the treatment the salespersons
have towards the respective organizations.
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Keywords: Salesperson, enterprise selling, predisposition, preferred customers, Differential
treatment.
INTRODUCTION
A primary requisite for a Salesperson’s job is the ability to interact with external prospects and
customers as part of the effort to complete the required transaction in the steps towards contribution
to the revenue of the organization. It thus comprises of a lot of conversations through interactions
with the prospective customers. The conversations can be verbal, virtual, telephonic, and email
depending on the tools of communication used. During such conversations, the prospective
customers do create impressions in the salesperson’s mind. (Wise, G. L. (1974). Through these
interactions, the salesperson does make a mental map of the customers on various parameters. The
salesperson’s experience over a range of time sets a scale of mapping his/ her own customers and
thus create an image of the customer in the context. A stereotyping is thus made in categorizing
customers into various types by own perceptions developed by his/her previous experiences
(Paparoidamis, N. G., & Guenzi, P. (2009). This is applicable to the salespersons across all formats of
sales. This stereo typing triggers a behavioral approach the salesperson has towards these
customers. This stereotyping does have implications on the expectations the salesperson has in the
process of selling. Therefore, each of the salespersons makes up their mind on the stance they
would take in their interaction with each of the customers.
This study focused on the impact the style of management of the prospective organization has, in
the stereotyping, and the stance, enterprise salespersons take, in their interactions with customers.
A regular continuous process. (Stock, R. M., & Hoyer, W. D. (2005). This stereotyping is a result of
their mindsets developed over time and thus leading to a predisposition towards each of the
customer. There are various considerations each salesman will have in his mind to “classify” the
prospective customers to be “Preferred” or Non-Preferred”. (Singh, R., & Venugopal, P. (2015), Chen,
Y., Rivas, A. A., & Wu, W. (2018).
Each sales interaction requires a sequence of efforts by the salesperson to make it successful. This
sequence of efforts is what a salesperson needs to put in to complete a sale. These efforts are
influenced by the image and hence the predisposition the salesperson has on the prospective
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customer. ((Gillis et al, 1998).
This study thus focused on the impact of the style of management prevalent in the organization in
the context to be preferred or non-preferred (Evans et al, 2000) and the intensity of the efforts in the
process of enterprise selling. The results are varying across businesses largely based on their nature
of target customers, the extent and intensity of knowledge of the prospective organization.
Literature Survey
Despite its importance in sales, listening and the impact on the customer interaction is a neglected
factor in research with limited studies examining the phenomenon since the work conducted by
Castleberry and Shepherd (1993) and Ramsey and Sohi (1997). Knowledge of the importance of
listening that does have an impact on sales and the processes involved is very vital for salespersons.
Using meta-analytical techniques, a study summarizes approximately 20 years of research on
salesperson listening. The obtained results show that listening is a right tool for customer-oriented
salespersons show care for customers, which helps them adapt their selling to fit demands of the
customers. Salesperson relational and sales outcomes are driven by listening through direct and
mediated mechanisms. (Itani, O. S., Goad, E. A., & Jaramillo, F. (2019).
An organization’s customer orientation, centralization, and employee relations with individuals in
the organization were significantly related to have customer orientation or selling orientation, or
both. Organization’s customer orientation and perceptions of the organization culture were
positively related to a salesperson’s extent of customer orientation and negatively to selling
orientation. Centralization was more effort selling and not to customer. Customer orientation helps
in the salesperson’s performance, while selling orientation does not have a positive impact. (Boles,
J. S., Babin, B. J., Brashear, T. G., & Brooks, C. (2001).
The results from a field study and an experiment indicate that salesperson’s orientation adaptability
depends on a salesperson’s customer oriented characteristics. Salespeople are subject to a success
trap in spending more effort on customer orientation. Thus, a salesperson’s customer portfolio
influences salesperson behaviors and performance. This influences the management of
ambidextrous behaviors in customer engagement. (Lam, S. K., DeCarlo, T. E., & Sharma, A.
(2019).
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Jaramillo et al demonstrated that SOCO is a good predictor of salesperson job performance. High
performance kicks off when salespersons put their effort on identifying the customer’s individual
needs and offer products to satisfy those needs. (Jaramillo, F., Ladik, D. M., Marshall, G. W., &
Mulki, J. P. (2007).
Customer orientation (CO) and long-term relationships customers are the preconditions for
maintaining growth and profit. Differentiators of special relationship, targeted communication,
and personalized relationships build up customer liking of the brands. (Valenzuela, L. M., Mulki,
J. P., & Jaramillo, J. F. (2010).
Franke, G. R., & Park, J. E. (2006) test alternative models of precursors and consequences of
adaptive selling behavior (ASB) and customer orientation (CO).
Keillor, B. D., Stephen Parker, R., & Pettijohn, C. E. (2000). Relationship-oriented characteristics
and individual salesperson performance. Journal of Business & Industrial Marketing, 15(1), 7-22.
A seller and customer firm work together with a goal to have value either side. Both direct and
indirect functions of customer relationships contribute to the value perceived by the supplier. The
results of this study have considerable consequences for the management of inter-organizational
relationships and networks regarding the process of how value can be created in business markets.
(Walter, A., Ritter, T., & Gemünden, H. G. (2001).
Methodology
Size of the enterprise is one of the various factors that are involved in the segmentation of the
customers for the offerings, products or solutions, by an enterprise. The factors thus taken into
consideration sets the entire sales process to focus on those organizations that fit into the
description of the targeted enterprises. All prospects of a sale may not fit perfectly into the
segments of enterprises that are focused upon. An enterprise salesperson can therefore have
predispositions in the interactions with prospective customers based on the Enterprise size (in
Turnover) (Johnston, M. W., & Marshall, G. W. (2013).
In the interaction the salesperson has with the prospective customer, the following are the
sequential steps for an enterprise sale that need the involvement the salesperson with the customer.
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• Seeking Information from the enterprise of their problems, nature of business
specifications, etc. (Liao, S. H., Chen, Y. J., & Hsieh, H. H. (2011)
• Pre Sales Analysis is the process or a set of activities/sales normally carried out before a
customer is acquired, though sometimes presales also extends into the period the product
or service is delivered to the customer. (Guenzi, P. (2002)
• Time Spent with the prospective enterprise in the complete interaction from the beginning
to the time the conclusion is arrived at. More time is spent with more prospective enterprise
customers (Tsai, W. C., & Huang, Y. M. (2002).
• Negotiation scope is the wide breadth or the accommodation provided to the either parties
in the process of a negotiation before an agreement or disagreement is arrived at, More the
prospect of a deal, more is the scope of negotiations and vice versa (D'Andrea, R. (2005)
• Solution Alternatives given to the customer enterprises to match both the capabilities of
the solution provider and the solution seeking organization.
• Cross functional teams involved are the teams across functions beyond the sales function
who are involved in understanding the customer requirements and offering the support
activities required.
The above factors are thus the dependent variables which influence the enterprise salespersons in
their involvement in the selling process with the prospective client organizations. The level of
involvement in these steps is thus an indicator of the predisposition the salespersons have, in their
preference of having the respective organization as a customer.
Therefore, the six steps in their interaction with the different organizations were taken into account
to measure of their involvement on a scale of 1-5. That indicates the preference they would have
in each of the steps to make the organization a client for their business. The one factor as discussed
earlier was the style of management in the enterprise to set their preferences for the company to
be their customer. The various types of management considered were namely
1)Directive - Do the way I tell you
2) Participative - Everyone has input
3) Authoritative - Firm but fair
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4) Affiliative - People first, task second
The intensity and scope of these six variables may not be uniform across all the salespersons.
(Chen, Y, Rivas, A. A., & Wu, W. (2018). Also since the preference of a company being a
customer has an influence on the salespersons in the involvement in each of the steps in the sales
process, all the six steps were put forward to the enterprise salespersons to measure their
involvement in each of them on a Likert scale. 5 being the maximum and 1 being the least of their
efforts. Thus the conceptual model of the study can be put as below.
Data Collection
Questionnaires (Appendix 1) were mailed online to various salespersons, whose target customers
are enterprises. Based on the responses that were thus obtained from them, data of 158
questionnaires across various categories of enterprise salespersons have been analyzed.
The questionnaire had three parts. Part 1 was used to capture the specific product/ solutions the
salesperson deals with along with the designation currently held, number of years of experience,
number of years in the present role, and diversity of the industries worked in
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Part 2 was used to understand the specifics of the target segment on the characteristics which the
salesperson carries in his/ her mind for the preferred customer in terms of the style of management
of the enterprise. The styles of management were as discussed above in the methodology.
Part 3 of the questionnaire was a Likert Scale (1-5) based measure of the involvement of the
salesperson in the six steps of the sales process. Here 1 is the least amount of involvement in the
steps of the sales process, while 5 represents the maximum involvement
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Analysis of Data
Table-1.1: Post Hoc Analysis
Seeking Information from the enterprise – Management Style
Preferred Seeking Information
Tukey Ba,b
Management Style N
Subset
for alpha
= 0.05
1
Directive - Do the way I tell you 4 4.25
Participative - Everyone has input 68 4.25
Authoritative - Firm but fair 49 4.27
Affiliative - People first, task
second 37 4.35
Inference:
In the Preferred category of enterprise customers, Directive and participative style of
management is given the least amount of preference while organizations that have
authoritative and affiliative styles of management are given higher preferences in the
effort to seek information.
In the Non-Preferred category of enterprise customers, effort in seeking information is
given more for participative style of management and then for Authoritative style of
management.
Non- preferred seeking info
Tukey Ba,b
Management Style N
Subset for
alpha =
0.05
1
Directive - Do the way I tell you 4 1.75
Affiliative - People first, task
second 37 1.97
Authoritative - Firm but fair 49 2.31
Participative - Everyone has input 68 2.49
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Table-1.2: Post Hoc Analysis
Presales Analysis based on Management Style
Preferred Enterprises
Tukey Ba,b
Management Style N
Subset for alpha =
0.05
1
Participative - Everyone has
input 68 4.18
Authoritative - Firm but fair 49 4.37
Affiliative - People first,
task second 37 4.46
Directive - Do the way I tell
you 4 4.75
Inference:
For the required process of pre sales analysis, preferred types of enterprises are those that
have a directive styles of management of the organizations
For the non-preferred category of customers, Participative style of management has
relatively higher preference than the Directive type of management.
Presales analysis non –preferred
Tukey Ba,b
Management Style N
Subset for
alpha = 0.05
1
Directive - Do the way I
tell you 4 1.75
Authoritative - Firm but
fair 49 2.16
Affiliative - People first,
task second 37 2.35
Participative - Everyone
has input 68 2.47
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Table-1.3: Post Hoc Analysis
Time Spent with the Enterprise – Management Style
Preference For Time Spent
Tukey Ba,b
Management Style N
Subset for alpha
= 0.05
1
Participative - Everyone
has input 68 4.18
Directive - Do the way I
tell you 4 4.25
Authoritative - Firm but
fair 49 4.33
Affiliative - People first,
task second 37 4.51
Inference:
Affiliative type of management has greater preference for spending the time in
comparison to the other styles of management.
But in the non-preferred types of customers, Directive style of management has greater
affinity for the salespersons.
Non-Preference For Time Spent
Tukey Ba,b
Management Style N
Subset for alpha =
0.05
1
Affiliative - People first,
task second 37 2.05
Authoritative - Firm but
fair 49 2.24
Participative - Everyone
has input 68 2.40
Directive - Do the way I
tell you 4 2.50
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Table-1.4: Post Hoc Analysis
Scope for Negotiation - Management Style
Inference:
Few of the sample population have the highest preference for directive style of
management to negotiate as compared to the participative type of management which is
represented by the highest number of respondents of salespersons.
The trends are opposite for the non- preferred type of customer organizations
Preferred for negotiation Type
Tukey Ba,b
Management Style N
Subset for alpha
= 0.05
1
Participative - Everyone has
input 68 4.09
Affiliative - People first, task
second 37 4.16
Authoritative - Firm but fair 49 4.18
Directive - Do the way I tell
you 4 4.50
Non - preferred for negotiation Type
Tukey Ba,b
Management Style N
Subset for alpha
= 0.05
1
Directive - Do the way I tell
you 4 2.00
Affiliative - People first,
task second 37 2.19
Participative - Everyone has
input 68 2.24
Authoritative - Firm but fair 49 2.31
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Table-1.5: Post Hoc Analysis
Alternate Solutions – Management Style
Preferred for alternate solutions
Tukey Ba,b
Management Style N
Subset for alpha
= 0.05
1
Participative - Everyone
has input 68 4.06
Authoritative - Firm but
fair 49 4.31
Affiliative - People first,
task second 37 4.49
Directive - Do the way I
tell you 4 4.50
Inference:
For suggesting alternative solutions to the enterprises, the sales personnel prefer a directive
style of management compared to the participative type of management which is
represented by the highest number of respondents of salespersons.
In case of the non- preferred type of customer organizations, sales personnel have greater
affinity for participative style of Management
Non - Preferred for alternate solutions
Tukey Ba,b
Management Style N
Subset for alpha =
0.05
1
Affiliative - People first,
task second 37 2.16
Directive - Do the way I
tell you 4 2.25
Authoritative - Firm but
fair 49 2.39
Participative - Everyone
has input 68 2.41
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Table-1.6: Post Hoc Analysis
Interaction of Cross functional teams based on Management Style
Inferences:
An affiliative style of Management is preferred for the involvement of cross functional
teams in the enterprise solutions offered.
Among Non-preferred type of customers, a directive type of management style is
preferred.
Conclusions
Salespersons do differentiate the Enterprises they interact with based on the style of management
in the enterprise. They do categorize the prospective customers to be preferred or non-preferred.
This has an influence in each of the steps of the selling process with the enterprise in question.
This influence is seen to have the variation in the intensity of their preference with each segment
Preferred for Cross functional teams
Tukey Ba,b
Management Style N
Subset for
alpha = 0.05
1
Participative - Everyone
has input 68 4.01
Directive - Do the way I
tell you 4 4.25
Authoritative - Firm but
fair 49 4.39
Affiliative - People first,
task second 37 4.41
Non - Preferred for Cross functional teams
Tukey Ba,b
Management Style N
Subset for
alpha = 0.05
1
Affiliative - People first,
task second 37 2.16
Authoritative - Firm but
fair 49 2.29
Participative - Everyone
has input 68 2.41
Directive - Do the way I
tell you 4 2.75
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of the preferred and non-preferred customers. Such differentiation they have in their preference
can cause a predisposition towards the customers in each of the steps of the sales process.
Therefore, the organizations do have to focus on their management style of the enterprise thereby
creating the right impression to the salespersons and thus enable themselves to be the beneficiaries
of the market conditions.
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