DOES JOB EXPERIENCE AND CUSTOMER ORIENTATIONS CONTRIBUTES TOWARDS SALES PERFORMANCE? CASE OF LIFE INSURANCE
DOI:
https://doi.org/10.61841/fpzj9d72Keywords:
Sales force, Customer orientation, Life insurance, Job experience, Sales performance, IndonesiaAbstract
The purpose of this study is evaluate the role of job experience and customer orientations towards the sales performance in insurance industry. Job experience can only be gained over time but it must also come from the employee that willing to explore and take up the challenging works in order to get more knowledge and exposure. Customer orientation at the same time is related on how organization put priority to their customer. Customer orientation is best to be practiced in a service based product. Customer orientation will consider customer needs and wants on top of their marketing and sales strategy. The study is using a sample of 200 life insurance salespersons from selected cities in Indonesia. The results suggested that experience works with customer-oriented selling in making the more experienced salespersons better performers. It was found that more experienced salespersons’ performance is better explained using customer oriented selling. The study contributes by explaining the mechanism for the above relationships. The study also contributes to knowledge by showing that more experience may not be always good for sales performance. The managerial implications of this study lie in explaining those situations where experience can make salespersons more productive.
Downloads
References
[1] Aakvik, A., Hansen, F., & Torsvik, G. (2017). Productivity dynamics, performance feedback and group incentives in a sales organization. Labour Economics, 46(December 2016), 110–117. https://doi.org/10.1016/j.labeco.2016.12.003
[2] Adams, P., Bodas Freitas, I. M., & Fontana, R. (2019). Strategic orientation, innovation performance and the moderating influence of marketing management. Journal of Business Research, 97(January 2018), 129–140. https://doi.org/10.1016/j.jbusres.2018.12.071
[3] Arndt, A. D., & Karande, K. (2012). Is it better for salespeople to have the highest customer orientation or a strong fit with their group’s customer orientation? Findings from automobile dealerships. Journal of Retailing and Consumer Services, 19(3), 353–359. https://doi.org/10.1016/j.jretconser.2012.03.009
[4] Bachrach, D. G., Mullins, R. R., & Rapp, A. A. (2017). Intangible sales team resources: Investing in team social capital and transactive memory for market-driven behaviors, norms and performance. Industrial Marketing Management, 62, 88–99. https://doi.org/10.1016/j.indmarman.2016.08.001
[5] Charoensukmongkol, P., & Sasatanun, P. (2017). Social media use for CRM and business performance satisfaction: The moderating roles of social skills and social media sales intensity. Asia Pacific Management Review, 22(1), 25–
34. https://doi.org/10.1016/j.apmrv.2016.10.005
[6] Chen, L. K., & Yang, W. N. (2015). Perceived service quality discrepancies between telecommunication service provider and customer. Computer Standards and Interfaces, 41, 85–97. https://doi.org/10.1016/j.csi.2015.02.012
[7] Dabrowski, D., Brzozowska-Woś, M., Gołąb-Andrzejak, E., & Firgolska, A. (2019). Market orientation and hotel performance: The mediating effect of creative marketing programs. Journal of Hospitality and Tourism Management, 41(November), 175–183. https://doi.org/10.1016/j.jhtm.2019.10.006
[8] Fang, E., Evans, K. R., & Zou, S. (2005). The moderating effect of goal-setting characteristics on the sales control systems-job performance relationship. Journal of Business Research, 58(9 SPEC. ISS.), 1214–1222. https://doi.org/10.1016/j.jbusres.2004.03.006
[9] Feng, T., Wang, D., Lawton, A., & Luo, B. N. (2019). Customer orientation and firm performance: The joint moderating effects of ethical leadership and competitive intensity. Journal of Business Research, 100(February
2018), 111–121. https://doi.org/10.1016/j.jbusres.2019.03.021
[10] Gaiardelli, P., Saccani, N., & Songini, L. (2007). Performance measurement of the after-sales service network- Evidence from the automotive industry. Computers in Industry, 58(7), 698–708. https://doi.org/10.1016/j.compind.2007.05.008
[11] Gligor, D., Gligor, N., & Maloni, M. (2019). The impact of the supplier’s market orientation on the customer market orientation-performance relationship. International Journal of Production Economics, 216(January), 81–93. https://doi.org/10.1016/j.ijpe.2019.04.022
[12] Goh, S. H., & Eldridge, S. (2019). Sales and Operations Planning: The effect of coordination mechanisms on supply chain performance. International Journal of Production Economics, 214(April), 80–94. https://doi.org/10.1016/j.ijpe.2019.03.027
[13] Gómez, M. I., McLaughlin, E. W., & Wittink, D. R. (2004). Customer satisfaction and retail sales performance: An empirical investigation. Journal of Retailing, 80(4), 265–278. https://doi.org/10.1016/j.jretai.2004.10.003
[14] Groza, M. D., & Groza, M. P. (2018). Salesperson regulatory knowledge and sales performance. Journal of Business Research, 89(April), 37–46. https://doi.org/10.1016/j.jbusres.2018.04.005
[15] Groza, M. D., Locander, D. A., & Howlett, C. H. (2016). Linking thinking styles to sales performance: The importance of creativity and subjective knowledge. Journal of Business Research, 69(10), 4185–4193. https://doi.org/10.1016/j.jbusres.2016.03.006
[16] Guenzi, P., Sajtos, L., & Troilo, G. (2016). The dual mechanism of sales capabilities in influencing organizational performance. Journal of Business Research, 69(9), 3707–3713. https://doi.org/10.1016/j.jbusres.2016.03.033
[17] Hamzah, M. I., Othman, A. K., & Hassan, F. (2016). Moderating Role of Customer Orientation on the Link between Market Oriented Behaviors and Proactive Service Performance among Relationship Managers in the Business Banking Industry. Procedia - Social and Behavioral Sciences, 224(August 2015), 109–116. https://doi.org/10.1016/j.sbspro.2016.05.412
[18] Hassan, S., & Shamsudin, M. F. (2019). Measuring the effect of service quality and corporate image on student satisfaction and loyalty in higher learning institutes of technical and vocational education and training. International Journal of Engineering and Advanced Technology, 8(5), 533–538. https://doi.org/10.35940/ijeat.E1077.0585C19
[19] Herhausen, D., Kleinlercher, K., Verhoef, P. C., Emrich, O., & Rudolph, T. (2019). Loyalty Formation for Different Customer Journey Segments. Journal of Retailing, 95(3), 9–29. https://doi.org/10.1016/j.jretai.2019.05.001
[20] Hur, W. M., Han, S. J., Yoo, J. J., & Moon, T. W. (2015). The moderating role of perceived organizational support on the relationship between emotional labor and job-related outcomes. Management Decision, 53(3), 605–624. https://doi.org/10.1108/MD-07-2013-0379
[21] Itani, O. S., Goad, E. A., & Jaramillo, F. (2019). Building customer relationships while achieving sales performance results: Is listening the holy grail of sales? Journal of Business Research, 102(April 2018), 120–130. https://doi.org/10.1016/j.jbusres.2019.04.048
[22] Jang, S., & Nemeh, A. (2017). Salespeople knowledge search behavior and sales performance: An investigation of printing equipment industry. Technological Forecasting and Social Change, 120, 323–333. https://doi.org/10.1016/j.techfore.2016.12.014
[23] Jantan, M. A., Honeycutt, E. D., Thelen, S. T., & Attia, A. M. (2004). Managerial perceptions of sales training and performance. Industrial Marketing Management, 33(7), 667–673. https://doi.org/10.1016/j.indmarman.2003.09.003
[24] Javalgi, R. G., Hall, K. D., & Cavusgil, S. T. (2014). Corporate entrepreneurship, customer-oriented selling, absorptive capacity, and international sales performance in the international B2B setting: Conceptual framework and research propositions. International Business Review, 23(6), 1193–1202. https://doi.org/10.1016/j.ibusrev.2014.04.003
[25] Jelinek, R. (2013). All pain, no gain? Why adopting sales force automation tools is insufficient for performance improvement. Business Horizons, 56(5), 635–642. https://doi.org/10.1016/j.bushor.2013.06.002
[26] Kadic-Maglajlic, S., Micevski, M., Arslanagic-Kalajdzic, M., & Lee, N. (2017). Customer and selling orientations of retail salespeople and the sales manager’s ability-to-perceive-emotions: A multi-level approach. Journal of Business Research, 80(June), 53–62. https://doi.org/10.1016/j.jbusres.2017.06.023
[27] Kraft, F. B., Maity, D., & Porter, S. (2019). The salesperson wellness lifestyle, coping with stress and the reduction of turnover. Journal of Business and Industrial Marketing, 34(2), 347–359. https://doi.org/10.1108/JBIM-03-2017- 0058
[28] Lai, C. J., & Gelb, B. D. (2019). Another look at motivating – and retaining – salespeople. Journal of Business Strategy, 40(4), 11–17. https://doi.org/10.1108/JBS-05-2018-0091
[29] Lee, C. M. J., Che-Ha, N., & Syed Alwi, S. F. (2020). Service customer orientation and social sustainability: The case of small medium enterprises. Journal of Business Research, (December 2018), 1–10. https://doi.org/10.1016/j.jbusres.2019.12.048
[30] Lee, D. J., & Ahn, J. K. (2007). Factors affecting companies’ telecommunication service selection strategy. Omega, 35(5), 486–493. https://doi.org/10.1016/j.omega.2005.09.004
[31] Li Sa, M. L., Choon-Yin, S., Chai, Y. K., & Aik Joo, J. H. (2019). Knowledge creation process, customer orientation and firm performance: Evidence from small hotels in Malaysia. Asia Pacific Management Review, (xxxx). https://doi.org/10.1016/j.apmrv.2019.07.002
[32] Liozu, S. M. (2015). Pricing superheroes: How a confident sales team can influence firm performance. Industrial Marketing Management, 47, 26–38. https://doi.org/10.1016/j.indmarman.2015.02.003
[33] Lussier, B., & Hartmann, N. N. (2017). How psychological resourcefulness increases salesperson’s sales performance and the satisfaction of their customers: Exploring the mediating role of customer-oriented behaviors.
Industrial Marketing Management, 62, 160–170. https://doi.org/10.1016/j.indmarman.2016.08.009
[34] Mariadoss, B. J., Milewicz, C., Lee, S., & Sahaym, A. (2014). Salesperson competitive intelligence and performance: The role of product knowledge and sales force automation usage. Industrial Marketing Management, 43(1), 136–145. https://doi.org/10.1016/j.indmarman.2013.08.005
[35] Matsuo, M. (2006). Customer orientation, conflict, and innovativeness in Japanese sales departments. Journal of Business Research, 59(2), 242–250. https://doi.org/10.1016/j.jbusres.2005.06.002
[36] Miao, C. F., & Wang, G. (2016). The differential effects of functional vis-à-vis relational customer orientation on salesperson creativity. Journal of Business Research, 69(12), 6021–6030. https://doi.org/10.1016/j.jbusres.2016.05.017
[37] Nguyen, Q. T. K., & Rugman, A. M. (2015). Multinational subsidiary sales and performance in south east asia.
International Business Review, 24(1), 115–123. https://doi.org/10.1016/j.ibusrev.2014.07.001
[38] O’Dwyer, M., & Gilmore, A. (2018). Value and alliance capability and the formation of strategic alliances in SMEs: The impact of customer orientation and resource optimisation. Journal of Business Research, 87(September 2017), 58–68. https://doi.org/10.1016/j.jbusres.2018.02.020
[39] Ohiomah, A., Andreev, P., Benyoucef, M., & Hood, D. (2019). The role of lead management systems in inside sales performance. Journal of Business Research, 102(May 2018), 163–177. https://doi.org/10.1016/j.jbusres.2019.05.018
[40] Panagopoulos, N. G., & Avlonitis, G. J. (2010). Performance implications of sales strategy: The moderating effects of leadership and environment. International Journal of Research in Marketing, 27(1), 46–57. https://doi.org/10.1016/j.ijresmar.2009.11.001
[41] Panagopoulos, N. G., & Ogilvie, J. (2015). Can salespeople lead themselves? Thought self-leadership strategies and their influence on sales performance. Industrial Marketing Management, 47, 190–203. https://doi.org/10.1016/j.indmarman.2015.02.043
[42] Park, J. E., Kim, J., Dubinsky, A. J., & Lee, H. (2010). How does sales force automation influence relationship quality and performance? The mediating roles of learning and selling behaviors. Industrial Marketing Management, 39(7), 1128–1138. https://doi.org/10.1016/j.indmarman.2009.11.003
[43] Peterson, R. A., & Crittenden, V. L. (2018). Exploring customer orientation as a marketing strategy of Mexican- American entrepreneurs. Journal of Business Research, (September 2017), 0–1. https://doi.org/10.1016/j.jbusres.2018.12.059
[44] Pousa, C., Mathieu, A., & Trépanier, C. (2017). Managing frontline employee performance through coaching: does selling experience matter? International Journal of Bank Marketing, 35(2), 220–240. https://doi.org/10.1108/IJBM- 01-2016-0005
[45] Purani, K., & Sahadev, S. (2008). The moderating role of industrial experience in the job satisfaction, intention to leave relationship: An empirical study among salesmen in India. Journal of Business and Industrial Marketing, 23(7), 475–485. https://doi.org/10.1108/08858620810901239
[46] Purohit, B. (2018). Salesperson performance: role of perceived overqualification and organization type. Marketing Intelligence and Planning, 36(1), 79–92. https://doi.org/10.1108/MIP-06-2017-0108
[47] R.M, H., Sivakumaran, B., & Jacob, J. (2019). The moderating role of sales experience in adaptive selling, customer orientation and job satisfaction in a unionized setting. Journal of Business and Industrial Marketing, 34(8), 1724– 1735. https://doi.org/10.1108/JBIM-08-2018-0233
[48] Ramos, P., Santos, N., & Rebelo, R. (2015). Performance of state space and ARIMA models for consumer retail sales forecasting. Robotics and Computer-Integrated Manufacturing, 34, 151–163. https://doi.org/10.1016/j.rcim.2014.12.015
[49] Rangarajan, D., Peasley, M., Paesbrugghe, B., Srivastava, R. V., & Stewart, G. T. (2020). The impact of adverse life events on salesperson relationships with customers. Journal of Business & Industrial Marketing, ahead-of-p(ahead- of-print). https://doi.org/10.1108/jbim-05-2019-0274
[50] Rapp, A., Beitelspacher, L. S., Schillewaert, N., & Baker, T. L. (2012). The differing effects of technology on inside vs. outside sales forces to facilitate enhanced customer orientation and interfunctional coordination. Journal of Business Research, 65(7), 929–936. https://doi.org/10.1016/j.jbusres.2011.05.005
[51] Razak, A. A., & Shamsudin, M. F. (2019). The influence of atmospheric experience on Theme Park Tourist’s satisfaction and loyalty in Malaysia. International Journal of Innovation, Creativity and Change, 6(9), 10–20.
[52] Schweizer, N., & Szech, N. (2019). Performance bounds for optimal sales mechanisms beyond the monotone hazard rate condition. Journal of Mathematical Economics, 82, 202–213. https://doi.org/10.1016/j.jmateco.2019.02.007
[53] Shamsudin, M. F., Nurana, N., Aesya, A., & Nabi, M. A. (2018). Role of university reputation towards student choice to private universities. Opcion, 34(Special Issue 16), 285–294.
[54] Shamsudin, M. F., Razak, A. A., & Salem, M. A. (2018). The role of customer interactions towards customer satisfaction in theme parks experience. Opcion, 34(Special Issue 16), 546–558.
[55] Shamsudin, M. F., Shabi, K. S., & Salem, M. A. (2018). Role of perceived credibility towards intention to use of m- commerce. Opcion, 34(Special Issue 16), 276–284.
[56] Shamsudin, Mohd Farid, Ali, A. M., Nadzri, F. H., & Wahid, R. A. (2019). Influence of academic program, tuition fees and location on students’ decisions to enroll at universiti: A study of kuala lumpur business school campus.
Humanities and Social Sciences Reviews, 7(1), 108–112. https://doi.org/10.18510/hssr.2019.7113
[57] Shamsudin, Mohd Farid, Ali, A. M., Wahid, R. A., & Nadzri, F. H. (2019). Role of financial aid as a moderator towards students’ decisions making to enroll at private higher education institution. Humanities and Social Sciences Reviews, 7(1), 121–125. https://doi.org/10.18510/hssr.2019.7115
[58] Shamsudin, Mohd Farid, Esa, S. A., & Ali, A. M. (2019). Determinants of customer loyalty towards the hotel industry in Malaysia. International Journal of Innovation, Creativity and Change, 6(9), 21–29.
[59] Shamsudin, Mohd Farid, Ishak, M. F., Hashim, M. A., Nabi, M. A., Yazid, M. F. M., & Razak, A. A. (2019). Preliminary analysis on relationship of CRM functions implementation towards firm’s business performance.
Humanities and Social Sciences Reviews, 7(1), 113–120. https://doi.org/10.18510/hssr.2019.7114
[60] Singh, R., & Das, G. (2013). The impact of job satisfaction, adaptive selling behaviors and customer orientation on salesperson’s performance: Exploring the moderating role of selling experience. Journal of Business and Industrial Marketing, 28(7), 554–564. https://doi.org/10.1108/JBIM-04-2011-0121
[61] Smirnova, M. M., Rebiazina, V. A., & Frösén, J. (2018). Customer orientation as a multidimensional construct: Evidence from the Russian markets. Journal of Business Research, 86(November 2017), 457–467. https://doi.org/10.1016/j.jbusres.2017.10.040
[62] Sullivan, U. Y., Peterson, R. M., & Krishnan, V. (2012). Value creation and firm sales performance: The mediating roles of strategic account management and relationship perception. Industrial Marketing Management, 41(1), 166–
173. https://doi.org/10.1016/j.indmarman.2011.11.019
[63] Terho, H., Eggert, A., Haas, A., & Ulaga, W. (2015). How sales strategy translates into performance: The role of salesperson customer orientation and value-based selling. Industrial Marketing Management, 45(1), 12–21. https://doi.org/10.1016/j.indmarman.2015.02.017
[64] Troilo, G., De Luca, L. M., & Guenzi, P. (2009). Dispersion of influence between Marketing and Sales: Its effects on superior customer value and market performance. Industrial Marketing Management, 38(8), 872–882. https://doi.org/10.1016/j.indmarman.2009.06.009
[65] Wachner, T., Plouffe, C. R., & Grégoire, Y. (2009). SOCO’s impact on individual sales performance: The integration of selling skills as a missing link. Industrial Marketing Management, 38(1), 32–44. https://doi.org/10.1016/j.indmarman.2007.11.003
[66] Wihler, A., Meurs, J. A., Momm, T. D., John, J., & Blickle, G. (2017). Conscientiousness, extraversion, and field sales performance: Combining narrow personality, social skill, emotional stability, and nonlinearity. Personality and Individual Differences, 104, 291–296. https://doi.org/10.1016/j.paid.2016.07.045
[67] Zang, Z., Liu, D., Zheng, Y., & Chen, C. (2020). How do the combinations of sales control systems influence sales performance? The mediating roles of distinct customer-oriented behaviors. Industrial Marketing Management, 84(August 2019), 287–297. https://doi.org/10.1016/j.indmarman.2019.07.015
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
