Effects of Sales-Related Capabilities of Personal Selling Organizations on Individual Sales Capability, Sales Behaviors and Sales Performance in Cosmetics Personal Selling Channels

Abstract

This study sets out to assess the effects of sales-related capabilities of personal selling organizations on individual sales capabilities, sales behaviors, and sales performance in cosmetics personal selling channels. Data are collected from 151 salespeople, their sales organizations, and their visiting customers (151) in South Korea. The proposed hypotheses are tested through the structural equation modelling technique. The study finds that both types of sales-related capabilities (salesforce management capabilities and personal selling capabilities) have significant positive effects on the individual sales capabilities, respectively. Further, the individual sales capability of salespeople has a stronger impact on customer-oriented sales behavior than on selling-oriented sales behavior. Similarly, selling-oriented sales behavior has a negative effect on customer satisfaction while customer-oriented sales behavior has a positive effect. The study further finds that customer-oriented sales behavior has a positive effect, while selling-oriented sales behavior has no statistically significant effect on sales performance. The relationship length, the study finds, moderates the relationship between customer-oriented sales behavior and customer satisfaction. The study offers practical and theoretical insights into understanding the nuances of sales-related capabilities of sales organizations and how they affect the individual selling capabilities of salespeople, their selling behaviors and sales performance. The results also have crucial consequences for sales organizations, as they can help sales managers design strategies and develop a culture that focuses on building and enhancing the selling capabilities of the firm and the salesforce. The present study demonstrates how the selling capabilities of the personal selling organization can influence the individual selling capabilities of the salesperson and how these could engender positive selling behaviors and sales performance.