Showing papers in "Journal of the Academy of Marketing Science in 2021"

A strategic framework for artificial intelligence in marketing

Abstract: The authors develop a three-stage framework for strategic marketing planning, incorporating multiple artificial intelligence (AI) benefits: mechanical AI for automating repetitive marketing functions and activities, thinking AI for processing data to arrive at decisions, and feeling AI for analyzing interactions and human emotions. This framework lays out the ways that AI can be used for marketing research, strategy (segmentation, targeting, and positioning, STP), and actions. At the marketing research stage, mechanical AI can be used for data collection, thinking AI for market analysis, and feeling AI for customer understanding. At the marketing strategy (STP) stage, mechanical AI can be used for segmentation (segment recognition), thinking AI for targeting (segment recommendation), and feeling AI for positioning (segment resonance). At the marketing action stage, mechanical AI can be used for standardization, thinking AI for personalization, and feeling AI for relationalization. We apply this framework to various areas of marketing, organized by marketing 4Ps/4Cs, to illustrate the strategic use of AI.

Social media marketing strategy: definition, conceptualization, taxonomy, validation, and future agenda

Abstract: Although social media use is gaining increasing importance as a component of firms’ portfolio of strategies, scant research has systematically consolidated and extended knowledge on social media marketing strategies (SMMSs). To fill this research gap, we first define SMMS, using social media and marketing strategy dimensions. This is followed by a conceptualization of the developmental process of SMMSs, which comprises four major components, namely drivers, inputs, throughputs, and outputs. Next, we propose a taxonomy that classifies SMMSs into four types according to their strategic maturity level: social commerce strategy, social content strategy, social monitoring strategy, and social CRM strategy. We subsequently validate this taxonomy of SMMSs using information derived from prior empirical studies, as well with data collected from in-depth interviews and a quantitive survey among social media marketing managers. Finally, we suggest fruitful directions for future research based on input received from scholars specializing in the field.

Understanding anthropomorphism in service provision: a meta-analysis of physical robots, chatbots, and other AI

Abstract: An increasing number of firms introduce service robots, such as physical robots and virtual chatbots, to provide services to customers. While some firms use robots that resemble human beings by looking and acting humanlike to increase customers’ use intention of this technology, others employ machinelike robots to avoid uncanny valley effects, assuming that very humanlike robots may induce feelings of eeriness. There is no consensus in the service literature regarding whether customers’ anthropomorphism of robots facilitates or constrains their use intention. The present meta-analysis synthesizes data from 11,053 individuals interacting with service robots reported in 108 independent samples. The study synthesizes previous research to clarify this issue and enhance understanding of the construct. We develop a comprehensive model to investigate relationships between anthropomorphism and its antecedents and consequences. Customer traits and predispositions (e.g., computer anxiety), sociodemographics (e.g., gender), and robot design features (e.g., physical, nonphysical) are identified as triggers of anthropomorphism. Robot characteristics (e.g., intelligence) and functional characteristics (e.g., usefulness) are identified as important mediators, although relational characteristics (e.g., rapport) receive less support as mediators. The findings clarify contextual circumstances in which anthropomorphism impacts customer intention to use a robot. The moderator analysis indicates that the impact depends on robot type (i.e., robot gender) and service type (i.e., possession-processing service, mental stimulus-processing service). Based on these findings, we develop a comprehensive agenda for future research on service robots in marketing.

Effects of front-of-pack labels on the nutritional quality of supermarket food purchases: evidence from a large-scale randomized controlled trial

Abstract: To examine whether four pre-selected front-of-pack nutrition labels improve food purchases in real-life grocery shopping settings, we put 1.9 million labels on 1266 food products in four categories in 60 supermarkets and analyzed the nutritional quality of 1,668,301 purchases using the FSA nutrient profiling score. Effect sizes were 17 times smaller on average than those found in comparable laboratory studies. The most effective nutrition label, Nutri-Score, increased the purchases of foods in the top third of their category nutrition-wise by 14%, but had no impact on the purchases of foods with medium, low, or unlabeled nutrition quality. Therefore, Nutri-Score only improved the nutritional quality of the basket of labeled foods purchased by 2.5% (−0.142 FSA points). Nutri-Score’s performance improved with the variance (but not the mean) of the nutritional quality of the category. In-store surveys suggest that Nutri-Score’s ability to attract attention and help shoppers rank products by nutritional quality may explain its performance.

Conversational robo advisors as surrogates of trust: onboarding experience, firm perception, and consumer financial decision making

Abstract: The current research demonstrates how conversational robo advisors as opposed to static, non-conversational robo advisors alter perceptions of trust, the evaluation of a financial services firm, and consumer financial decision making. We develop and empirically test a novel conceptualization of conversational robo advisors building on prior work in human-to-human communication and interpersonal psychology, showing that conversational robo advisors cause greater levels of affective trust compared to non-conversational robo advisors and evoke a more benevolent evaluation of a financial services firm. We demonstrate that this increase in affective trust not only affects firm perception (in terms of benevolence attributions or a more positively-valenced onboarding experience), but has important implications for investor behavior, such as greater recommendation acceptance and an increase in asset allocation toward conversational robo advisors. These findings have important implications for research on trust formation between humans and machines, the effective design of conversational robo advisors, and public policy in the digital economy.

How and when do big data investments pay off? The role of marketing affordances and service innovation

Abstract: Big data technologies and analytics enable new digital services and are often associated with superior performance. However, firms investing in big data often fail to attain those advantages. To answer the questions of how and when big data pay off, marketing scholars need new theoretical approaches and empirical tools that account for the digitized world. Building on affordance theory, the authors develop a novel, conceptually rigorous, and practice-oriented framework of the impact of big data investments on service innovation and performance. Affordances represent action possibilities, namely what individuals or organizations with certain goals and capabilities can do with a technology. The authors conceptualize and operationalize three important big data marketing affordances: customer behavior pattern spotting, real-time market responsiveness, and data-driven market ambidexterity. The empirical analysis establishes construct validity and offers a preliminary nomological test of direct, indirect, and conditional effects of big data marketing affordances on perceived big data performance.

The biasing effect of common method variance: some clarifications

Abstract: There are enduring misconceptions in the marketing and management literature about the potential biasing effects of Common Method Variance (CMV). One belief is that the biasing effect of CMV is of greater theoretical than practical importance; another belief is that if CMV is a potential problem, it can be easily identified with the Harman one-factor test. In this article, we show that both beliefs are ill founded and need correction. To demonstrate our key points with greater generality, we use analytical derivations rather than empirical simulations. First, we examine the effects of CMV on correlations between observed variables as a function of measure unreliability and the sign and size of the “true” trait correlation. We demonstrate that, for negative trait correlations, CMV leads to a substantial upward bias in observed correlations (i.e., observed correlations are less negative than the trait correlation), and under certain conditions observed correlations may even have the wrong sign (assuming that the method loadings are both positive or both negative). We also show that, for positive trait correlations, the downward bias due to measurement unreliability does not always mitigate the upward bias due to CMV (again assuming that the method loadings are either both positive or both negative). Importantly, our results indicate that the inflationary effect of CMV is larger at lower levels of (positive) trait correlations, whereas the deflationary effect of unreliability is larger at higher levels of trait correlations. Second, we demonstrate analytically the serious deficiencies of the popular Harman one-factor test for detecting common method variance and strongly recommend against its use in future research.

An emerging theory of loyalty program dynamics

Abstract: As exemplary instruments of relationship marketing, loyalty programs are being implemented and studied at an unprecedented rate. Yet real-world efforts often fail—or at least do not live up to expectations—and despite the growing richness of loyalty program literature, the field remains fragmented. Thus, a comprehensive perspective is required. To guide further research and suggest ways that managers might improve loyalty program effectiveness, this article synthesizes insights on loyalty programs from empirical research and underlying psychological theories. The proposed conceptual model of loyalty program effectiveness consists of psychological, design, and operational elements; in turn, it suggests a set of 12 propositions that account for differential effects across customer acquisition, onboarding, expansion, and retention stages. With an evolving theory of loyalty programs across relationship dynamics, this propositional inventory parsimoniously delineates the trade-offs associated with relationship stage–based management of these programs. The proposed comprehensive foundation can guide loyalty program practice and research.

Disentangling the meanings of brand authenticity: The entity-referent correspondence framework of authenticity

Abstract: Although marketing researchers agree that brand authenticity has various meanings, little consensus exists concerning the number of meanings and what those meanings entail. This paper addresses this lack of clarity in the literature by introducing the Entity-Referent Correspondence (ERC) Framework of Authenticity. The ERC Framework provides an overarching definition of authenticity—a consumer’s perception of the degree to which a supposed authentic entity corresponds with or is “true to” something else, which we label a referent. The ERC Framework also suggests three types of authenticity—true-to-ideal, true-to-fact, and true-to-self—that are consistent with the general definition yet are distinct. Each type may manifest in a variety of ways in a brand context, suggesting that brand authenticity is not a singular concept. The framework also proposes nomological nets that explain how consumers form perceptions of each type, how the types lead to managerially relevant outcomes (e.g., expected quality, trust), and how the types affect each other. This research advances the literature on brand authenticity by offering three types of conceptual contributions as identified by MacInnis (2011): integrating, differentiating, and delineating.

Pandemics and marketing: insights, impacts, and research opportunities.

Abstract: Pandemics have been an unfortunate but consistent facet of human existence over centuries, threatening lives as well as livelihoods globally. Disconcertingly, their frequency persists, with four "major" pandemics disrupting the planet in the last 65 years and more expected in the future. While many of the economic and health consequences of pandemics are well-documented, their marketing implications are less understood. Addressing this gap, we develop a broad, conceptual framework to highlight the characteristics and impacts of pandemics as they relate to marketing. We first identify four macro-level forces that characterize pandemics and highlight their marketing implications. Next, using the 7P marketing mix model as the organizing structure, we discuss these implications at a micro-level and identify a set of research questions to stimulate further inquiry, not only to generate deeper insights pertaining to pandemics' marketing implications but also to envision new developments in these areas. Finally, we identify pandemics' disproportionate impacts on and implications for some industry sectors, including healthcare, retail, education, hospitality, and tourism.

How value co-creation and co-destruction unfolds: a longitudinal perspective on dialogic engagement in health services interactions

Abstract: Complex services, such as healthcare, struggle to realize the benefits of value co-creation due to the substantial challenges of managing such services over the long-term Key to overcoming these challenges to value co-creation is a profound understanding of dialogue (ie, ‘quality of discourse’ facilitating shared meaning) during service interactions Contributing to an emerging literature, we undertake a longitudinal, ethnographic study to assess dialogue between professionals and patients through the lens of dialogic engagement (ie, iterative mutual learning processes that bring about action through dialogue) We develop and empirically support six dialogic co-creation and co-destruction mechanisms that impact on the resolution of tensions and integration of knowledge resources between service providers and consumers We reveal the multidimensional and dynamic nature of value created or destroyed through these mechanisms in dialogue over time Taking healthcare as an exemplar, we offer a research agenda for developing our understanding of DE in complex services

The use of Net Promoter Score (NPS) to predict sales growth: insights from an empirical investigation

Abstract: Net Promoter Score (NPS) has been widely adopted by managers as a measure of customer mindset and predictor of sales growth. Over time, practitioners have evolved the use of NPS from its original purpose as a transaction-based customer loyalty metric, towards a metric for tracking overall brand health which includes responses from non-customers. Despite enduring managerial popularity, academics remain skeptical of NPS, citing methodological issues and ongoing concerns with NPS measurement. This study re-visits the use of NPS as a predictor of sales growth by analyzing data from seven brands operating in the U.S. sportswear industry, measured over five years. Our results confirm—within the context of our study—that while the original premise of NPS is reasonable, the methodological concerns raised by academics are valid, and only the more recently developed brand health measure of NPS (using an all potential customer sample) is effective at predicting future sales growth.

Digital business capability: its impact on firm and customer performance

Abstract: Digital business transformation forces firms to develop foundational capabilities to remain competitive. However, despite considerable academic and managerial interest, the nature of a digital business capability (DBC) that creates value by effectively managing digital business transformation remains unclear. Drawing on a mixed-methods approach, we conceptualize and operationalize the DBC construct. In Study 1, we examine the effects of DBC on firm performance using a cross-industry, multisource dataset. In Study 2, we assess the effects of DBC on customer performance using a unique multisource, multilevel dataset collected at two points in time. The results reveal that DBC contributes to performance, even beyond the effects of established constructs. Importantly, DBC increasingly drives firm performance after reaching a critical level of internal dynamism (i.e., U-shaped moderation). By contrast, DBC particularly pays off at an optimal level of external dynamism (i.e., inverse U-shaped moderation). DBC is more valuable for business-to-consumer than for business-to-business firms.

Upper echelons research in marketing

Abstract: Marketing scholars have recently embraced the study of the corporate upper echelons—the executives and board members atop the organizational hierarchy However, management scholars have researched the upper echelons for decades, with frequent forays into the marketing strategy domain As a result of progressing in two separate disciplines, the literature on marketing strategy and the upper echelons is fragmented and disjointed We develop an organizing framework to review extant research and assess and synthesize the knowledge in the upper echelons marketing strategy domain Our review covers the 14 most influential marketing and management journals from 1984 through February, 2020 Given the relative newness of this research within marketing, we develop a conceptual model fusing existing theory in the upper echelons and marketing strategy literatures, and use this to identify key blind spots and underdeveloped areas of knowledge caused by the two fields’ independent evolutions Finally, we also examine challenges associated with conducting research in this area and provide recommendations to help researchers and reviewers navigate these challenges to advance theory and practice

An updated paradigm for evaluating measurement invariance incorporating common method variance and its assessment

Abstract: Measurement invariance is necessary before any substantive cross-national comparisons can be made. The statistical workhorse for conducting measurement invariance analyses is the multigroup confirmatory factor analysis model. This model works well if a few items exhibit clearly differential item functioning, but it is not able to capture, model, and control for measurement bias that affects all items, i.e., this model cannot account for common method variance. The presence of common method variance in cross-national data leads to poorly fitting models which in turn often results in biased, if not incorrect, results. We introduce a procedure to analyze and control for common method variance in one’s data, based on a series of factor analysis models with a random intercept. The modeling framework yields constructs and factor scores free of method effects. We use marker variables to support the validity of the interpretation of the random intercept as method factor. An empirical application dealing with material values in Spain, the UK, and Brazil is provided. We compare results with those obtained for the standard multigroup confirmatory factor analysis model.

Knowledge structure in product- and brand origin–related research

Abstract: Scholarly research regarding origins of products and brands is deep-rooted within international marketing, with an extraordinary following as evidenced by the large body of literature that is continuing to evolve. Our goal in this research is to examine this domain, generically referred to as the country-of-origin (CO) literature, and identify the most influential contributions and their corresponding topics that form the intellectual foundations of this knowledge domain. Using citation and co-citation analyses, we develop a spatial representation of the CO literature via multidimensional scaling with two concurrent goals of unfolding the literature’s knowledge structure as the basis for proposing a conceptual framework and identifying new research directions in the field. Our database consists of 482 articles, extracted from the Web of Science, that contain 33,194 citations through 2019. We develop a managerially relevant conceptual approach based on the results of our co-citations–based CO knowledge structure to unfold new research directions and expand the boundaries of the CO literature in fruitful directions.

Operationalizing salesperson performance with secondary data: aligning practice, scholarship, and theory

Abstract: Despite the large body of research that examines the determinants of salesperson performance, significant variation exists regarding how scholars can operationalize salesperson performance using secondary, firm-provided data. Moreover, this variation often exists without explanation or justification. We explore the issue in three parts. First, we conduct practitioner surveys to discover various salesperson performance operationalizations (SPOs) in use by salespeople and sales managers. Second, using a carefully constructed and theoretically driven evaluative framework, we conduct a systematic review of the literature on salesperson performance that encompasses over thirty years of empirical research on the subject; this review allows us to better understand the SPOs that scholars use. Third, we compare these practitioner and scholarly perspectives to create a comprehensive conceptual model of the different types of SPOs. The model highlights theoretical insights and provides guidance to scholars and reviewers related to the selection of appropriate SPOs for meeting specific research objectives.

Revisiting Gaussian copulas to handle endogenous regressors

Abstract: Marketing researchers are increasingly taking advantage of the instrumental variable (IV)-free Gaussian copula approach. They use this method to identify and correct endogeneity when estimating regression models with non-experimental data. The Gaussian copula approach’s original presentation and performance demonstration via a series of simulation studies focused primarily on regression models without intercept. However, marketing and other disciplines’ researchers mainly use regression models with intercept. This research expands our knowledge of the Gaussian copula approach to regression models with intercept and to multilevel models. The results of our simulation studies reveal a fundamental bias and concerns about statistical power at smaller sample sizes and when the approach’s primary assumptions are not fully met. This key finding opposes the method’s potential advantages and raises concerns about its appropriate use in prior studies. As a remedy, we derive boundary conditions and guidelines that contribute to the Gaussian copula approach’s proper use. Thereby, this research contributes to ensuring the validity of results and conclusions of empirical research applying the Gaussian copula approach.

Behaviorally targeted location-based mobile marketing

Abstract: Marketers increasingly use behavioral targeting in location-based mobile marketing (LBMM). However, highly personalized marketing messages like this may backfire by eliciting consumer reactance. We suggest that LBMM efficacy depends on its potential to minimize consumer reactance, which can be achieved by effectively combining location targeting (in-store vs. out-store), behavioral targeting (based on consumers’ product category involvement [PCI]), and the type of promotion offered (price vs. non-price promotion). Results of a field study, a virtual reality experiment, and two online experiments show that although in-store mobile ads are generally more effective in increasing sales than out-store mobile ads, this is only the case if consumers have low PCI with the advertised product category, because this decreases their reactance. To attract consumers to stores by out-store LBMM, we show that firms should offer price promotions to consumers with low PCI and non-price promotions to consumers with high PCI, because these combinations of location targeting, behavioral targeting, and type of promotion elicit the least reactance and therefore result in a higher probability to buy.

Buyer-Supplier Relationship Dynamics: A Systematic Review

Abstract: Marketing scholars have long acknowledged that buyer–supplier relationships (BSRs) evolve over time. Nevertheless, truly dynamic considerations tend to be confined to the “future research” sections of papers. Performing dynamic BSR research is difficult, not only because of the requirements of data collection and analysis, but also due to the somewhat fragmented understanding of the available studies on BSR dynamics and how an overarching understanding of their findings can refine static relationship models. We conduct a systematic literature review to organize the available research on BSR dynamics. The review process reveals four overarching themes: (1) relationship continuity, (2) relationship learning, (3) relationship stages and trajectories, and (4) relationship fluctuations. We discuss each theme, describe how the themes can be applied as a dynamic lens to research questions involving BSRs, and outline research directions that might stimulate further work on relationship dynamics.

A theory of multiformat communication: mechanisms, dynamics, and strategies

Abstract: Extant communication theories predate the explosion of digital formats and technological advances such as virtual reality, which likely explains their predominant focus on traditional and format-level (e.g., face-to-face, email) rather than digital or characteristic-level (e.g., visual cues, synchronicity) design decisions. Firms thus lack insights into how to create and use emerging digital formats, individually or synergistically. To establish a holistic framework of bilateral multiformat communication for relationship marketing, this article reviews communication theory to establish a foundation for understanding multiformat communication and to identify any gaps (e.g., AI agents, simulated cues). The authors then review bilateral communication research in light of the identified theoretical gaps, to inform their framework. Finally, by decomposing these formats according to six fundamental characteristics, they predict how each characteristic might promote effective, efficient, and experiential communication goals, in light of distinct message, temporal, and dyadic factors. Ultimately, these combined insights reveal an overarching framework, with characteristic-level propositions grouped into five key themes, that can serve as a platform for academics and managers to develop multiformat communication theory and relationship strategies.

How does consumer engagement evolve when brands post across multiple social media

Abstract: Brands allocate their social media advertising across multiple platforms such as Facebook, Twitter, Instagram, and YouTube. Because consumers use multiple social media, brand communications on one platform could generate engagement within the same platform (direct effects) and potentially impact engagement with the brand on the other platforms (spillover effects). Additionally, past engagement with a post on a platform could sustain into the future, thereby improving the longevity of posts (carryover effects). These effects could also vary across platforms. Drawing on recent advertising literature, the authors propose and test differential carryover, spillover, and direct effects within and across social media. The empirical analysis indicates that these effects exist and are significant, supporting the propositions presented. The analysis provides generalizable guidelines to social media marketers on the effectiveness of the various platforms at sustaining a post and at creating direct and spillover effects across other platforms. Finally, the study also exemplifies a resource allocation model for brands to use when allocating their efforts across the various social media platforms to maximize both consumer engagement and the firm’s return on social media investment.

How young companies can effectively manage their slack resources over time to ensure sales growth: the contingent role of value-based selling

Abstract: This research aims to bridge the entrepreneurship and marketing/sales literature streams by studying how young firms enable their resource endowments using value-based selling. Drawing on effectuation logic, the authors examine how young firms can achieve sales growth by using human and financial resource slack during the early years of their existence and accounting for the impact of the variability of these resources over time. The integrated framework and hypotheses are tested using unique, multisource (survey and objective archival) longitudinal panel data from 71 young firms covering a seven-year period. As anticipated, the findings show that both financial and human resource slack are negatively related to young firms’ sales growth over time and that financial resource slack variability exerts a positive impact and human resource slack variability exerts a (nonsignificant) negative impact. The results also confirm the importance of value-based selling as a guiding mechanism that significantly alters the effects of both types of resource slack and their variability over time. While value-based selling can help a young firm use slack to grow more effectively, it also has a dark side in that it can stand in the way of risk taking.

Consumer dynamics: theories, methods, and emerging directions

Abstract: Consumer attitudes and behaviors are fundamentally dynamic processes; thus, understanding consumer dynamics is crucial for truly understanding consumer behaviors and for firms to formulate appropriate actions. Recent history in empirical marketing research has enjoyed increasingly richer consumer data as the result of technology and firms’ conscious data collection efforts. Richer data, in turn, have propelled the development and application of quantitative methods in modeling consumer dynamics, and have contributed to the understanding of complex dynamic behaviors across many domains. In this paper, we discuss the sources of consumer dynamics and how our understanding in this area has improved over the past four decades. Accordingly, we discuss several commonly used empirical methods for conducting dynamics research. Finally, as the data evolution continues into new forms and new environments, we identify cutting-edge trends and domains, and offer directions for advancing the understanding of consumer dynamics in these emerging areas.

Sales enablement: conceptualizing and developing a dynamic capability

Abstract: Practitioners have touted sales enablement as a prominent solution to the challenges of the evolving buying and selling environments; however, empirical research on this concept is nonexistent in extant literature. Furthermore, while the pervasiveness of sales domain scholarship suggests that salespeople will continue to influence sales practice through expanded opportunities, firms must also blend the art and science of engaging customers in a profitable and sustainable manner. To address these scholarly demands, the authors designed an empirical study that conceptualizes sales enablement and offers an in-depth perspective on how organizations enable their sales force. The authors employ an ethnographic inquiry comprising various data sources, including 41 depth interviews with professionals responsible for sales enablement architecture and/or execution. Findings offer a multi-dimensional conceptualization of sales enablement and introduce a process model which explicates how firms develop sales enablement as a dynamic capability. This study expands current knowledge by offering foundational insights and advanced theories of sales enablement, while also providing strategic implications for sales organizations responding to evolving customer demands and selling environments.

Corporate social responsibility in luxury contexts: potential pitfalls and how to overcome them

Abstract: Recent marketing research has identified mixed effects of luxury companies’ corporate social responsibility (CSR) engagement on customer-level outcomes. To gain a better understanding of these effects, we develop a conceptual framework in which we propose that, unless carefully implemented, CSR engagement leads to lower financial performance, decreased customer loyalty, and elevated extrinsic CSR attributions for luxury companies. These effects are exacerbated if consumers actively deliberate on the company’s CSR efforts. However, luxury companies can mitigate these pitfalls and reap the potential rewards of CSR engagement by (1) engaging in company-internal, especially employee-focused CSR instead of company-external, philanthropic CSR or (2) framing their brands as sustainable instead of exclusive. We find consistent support for our theorizing in five empirical studies. The results contribute to existing knowledge on stakeholder reactions to luxury brands’ CSR and can help managers successfully navigate the implementation of CSR in luxury contexts.

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

Abstract: 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.

Engaging a product-focused sales force in solution selling: interplay of individual- and organizational-level conditions

Abstract: This study explains how manufacturers tackle the critical managerial challenge of transforming a product-focused sales force to undertake solution selling. Through an application of configurational theory, the authors explain how individual and organizational conditions combine to determine salespeople’s engagement in solution selling. Multilevel, multisource data from the sales organization of a global supplier of building solutions represent input from salespeople (N = 184), solution champions (N = 23), and sales managers (N = 26). A fuzzy set qualitative comparative analysis reveals no single, optimal way to overcome transformation challenges. Rather, consistent with prior research, solution selling requires certain types of salespeople, because value-based selling is a necessary condition for successful engagement. Beyond this foundational condition, a heterogeneous sales force can be engaged, as long as the organization provides appropriate support that is tailored to individual salespersons’ needs. The findings affirm that this viable support can come from either sales managers or solution champions.