Business buyers are people too: exploring how geodemographics affects business-to-business selling effectiveness

Abstract

Purpose Drawing from the contingency model, this study aims to investigate the moderating effects of business-to-business (B2B) buyer personal characteristics on the relationship between sales activities and sales effectiveness. Design/methodology/approach As an application of engaged scholarship, this study leverages a years’ worth of sales activity and results from a Fortune 500 financial services company for 2,710 dyads; personal characteristics (i.e. geodemographics) were appended for the customers/prospects of the dyads. The data was analyzed with hierarchical regression, and subgroups were tested using the Chow test. Findings The results support that geodemographic segments – as a proxy for personal characteristics – moderate the strength of the relationship between selling activities and sales effectiveness. Overall, the results demonstrate that selling activities have varying impacts on sales effectiveness within geodemographic segments and buyclass scenarios. Practical implications While it has been long held that understanding the personal characteristics of the B2B purchasing decision-maker is critical for sales effectiveness, little guidance has been provided on how to accomplish this to scale. The present study provides a framework and process for practitioner operationalization. Originality/value This research contributes to the literature that has explored personal characteristics of buying center members. Additionally, the results suggest that personal characteristics of the purchase decision-maker may transcend business-to-consumer and B2B purchasing contexts.