Download The Framework of Interaction Between Retailing Salesman and Its

The Framework of Interaction Between Retailing Salesman and Its
Customer upon Patronage Behavior
GUO Hongsheng, HUANG Yanrong
Business School, Gannan Normal University, P.R.China, 341000
[email protected]
Abstract: Through the establishment of a theoretical model about the function mechanism of interaction
between Store’s salesman and its customer upon patronage behavior of customer, it can be seen service
of store’s salesman can influence the consumers' perceived service quality, satisfaction and moreover,
the patronage intentions. Retailers and its employees should have customer orientation selling concept,
use adaptive selling and improve its internal management, which will increase customer’s happy
shopping experience and arouse consumers' purchasing desire to create a unique competitive advantage.
Keywords: Interaction, Trustiness, Customer orientation marketing, Patronage intention
1 Introduction
In recent years, the competitive environment of China's retailing has undergone great changes, the
domestic retailers and international retail giants are competing at the same stage, new retail formats has
rapidly developed. More and more retailers are no longer regard commodity, price, promotion and etc.
as primary means of competition, but begin to focus on consumer shopping experience gradually. At the
same time, more and more consumers have taken shopping as a leisure activity (WANG Xu-hui, 2008) .
[1]
Therefore, consumers not only want high-quality goods, but also eager to feel good experience when
shopping.
In the process of retailers create a customer experience, the salesman1 has played an important role.
Studies have shown that a good interaction between sales staff and their customers can make the
customer get a better consumption experience, the existing economic instruments and geographic
conditions, can enhance the attractiveness of shops, help to increase customer loyalty to shops and
repeat patronage. Therefore, Exert sales staff positive role, create a good interactions between sales staff
and their customer, increasingly become an important way for a modern retailer to enhance their
performance and obtain his competitive advantage. Therefore, this article will explore the function
mechanism of interactions between sales staff of retail enterprise and customer upon customer patronage
behavior, and seek the routing of retail enterprises create a competitive through good interactions
between sales staff and customer.
2 Literature Review
Interaction is actors in a particular context carried out with a certain interest objectives in the ongoing
process of interaction (CHEN Zong-quan, 2008). [2]Rayport and Jaworski (2005) considered that the
effective interaction management is a source of lasting competitive advantage, it is necessary for retail
enterprise to establish an interactive-oriented concept. [3]Interactive-oriented concepts formed by four
parts, customer concept, interactive response capability, customer empower and customer value
management. Interaction-oriented can create customer-based relationships performance and
customer-based profit performance. Customer-based relationship performance includes raising the level
of customer satisfaction, customer ownership and positive word of mouth. Customer-based profit
performance includes identifying, acquiring and retaining profitable customers, as well as transferring
non-profit customers into profitable customers (Ramani & Kumar, 1983). [4]
The interaction between service staff and their customers affects customer evaluation of service quality
1
Sales staff, salesclerk and service staff who directly contact with the customer in retail store collectively referred
as salesman, following the same
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(Hartline and Ferrell, 1996), and affects the customer's shopping experience (or consumption
experience).[5] Terblanche and Boshoff (2001) considered that the consumer experience is the deep
memory and subjective feelings which customer obtained by consuming a product project personally. [6]
Berman and Evans (1998) considered that the retail consumer experience is the all elements which
incentives or constraints when customer contacts with retailers.[7] To combine these views, consumer
experience includs two aspects at least:
all the elements of incentives or constraints contacted in the
transaction process; the resulting of deep memory and subjective feelings.
In addition, there are many scholars to argue the relationship between consumer experience and
customer satisfaction. Woodruff et al (1983) proposed the "customer consumption experience compare
model", held that the customer shopping experience is the most important factor affecting customer
satisfaction;[8] Mano et al (1993) considered that the customer’s after purchasing experience is a major
predisposing factor of customer satisfaction;[9] Winsted (1997) pointed out that the customer's perceived
service quality experience and contacting satisfaction are positively correlated. [10] Thus, Homburg et al
(2006) pointed out that studying the customer satisfaction problem from the point of consumer
experience is an important direction of customer satisfaction research.[11] In addition, the Chinese
scholar Wang Gao, Li Fei and Lu Qibin (2006) did empirical studies of customer satisfaction in major
supermarket chains also found that the greatest impact on customer satisfaction was affordable, followed
by shopping experience, and then store service. [12] In the retail business, an important experience of
consumer is coming from the interaction quality between the shop service personnel and consumers, that
is"staff service quality," The quality of personnel services is an important component of overall service
quality(WANG Xu-hui , 2008).[1]
In the process of interaction between customers and sales staff, customers obtain physical or
psychological satisfaction, then which will be to generate and maintain a close psychological connection
between them, a mutual attraction force existed between each other. According to social norms of
human interaction (human law), owe a favor, you should always think of ways to make every effort to
repay (Zhuang Gui–jun and XI You-min, 2003), [13] Therefore, the increase of customers patronage is
reasonable.
Thus, retail business can create a better consumer experience and satisfaction for customers by service
encounter, interactiving delivery service quality, and then making consumer to generate patronage. So
how should retailers use sales staff and customer interaction to stimulate consumer desire to buy? This
will require more in-depth analysis of function mechanism of the consumer patronage behavior from the
perspective of sales staff and customer interaction.
②
①
3 Function Mechanism of Interaction Between Retailing Salesman and Customer
upon Patronage Behavior
Beatty et al (1993) pointed out that with the increasingly competitive in retail business, store enhances
the service quality and customer loyalty through the relations activities between sale staff and customer.
[14]
In the retail environment which customer usually requires for personalized services, interpersonal
relationships is very important, that environment is called "relationship selling" retail environment.
Relationship selling emphasizes on delivering long-term additional benefits of customer expectations,
building mutual trust between buyers and sellers at the same time, (Jolson, 1997). [15] Personalized
service encounter and relationship selling practices are important factors to determine the service quality
which perceived by customer, customer satisfaction and purchase (Crosby et al., 1990).[16]
Evolutionary psychological theory suggests that people naturally have the ability to evaluate others by
the initial clues(Montepare, 2003).[17] Customers form loyalty firstly for the physical and visual services
(such as salesperson), and form loyalty ultimately for a more abstract and intangible aspects (such as
retail stores) (Reynolds and Arnold, 2000).[18] According to Grönroos (1990) "Customer perceived
service quality model"[19] and other relevant results, we have built up the theoretical framework of
function mechanism of interaction between retailing salesman and customer upon patronage behavior
(diagram 1).
385
3.1 The formation of customer trust to sales staff
Trust is the key theoretical cornerstone of the relationship transaction (Morgan & Hunt, 1994).[20] Thus
retail enterprises in order to achieve the aim of "relationship marketing" must establish customer trust
for salesman and stores. Wood et al (2008) found that the customer who is the first time to visit store
will determine sales staff whether they are liking, have professional expertising and trustworthy based
on the salesman’s appearance, the ways of serving customers.[21] Friendly, cheerful sales staff are easy
to please the customer, and customer is willing to close them, willing to accept the services they provide
(Doney and Cannon, 1997).[22] Professional skills of sales can be viewed as sales staff capabilities to
complete tasks and to build stimulating sales relationship. Empirical studies have shown that the
customer ongoing assess the professional skills of sales staff through the clues of sales staff. Decently
welcome, listen carefully, answer and explain, help customers will be regarded as a manifestation of
professional competence by customers. Helping customers is reflected in answering questions accurately,
connecting customer needs and choosing the right products. "Listen" and "response" will be a positive
impact on customer sales staff impressions and trust evaluation. Provide timely, reliable information is
also a manifestation of expertise.
In addition, customers will determine the strength of store through store's external decor and internal
environment of displays, and then determine whether trustworthy. The customers who trust the store
will also trust the store's sales staff (Wood et al., 2008). [21]
Customers patronage intentions for shop
Service experience
expected to Customer
Whether the sales staff
helpful, able to achieve the
desired objectives
Customer perceived service quality
Credibility of sales staff
Emotional reactions after
the customer interaction
and experience in shop
Credibility of shops
Professional skills of sales
Sales staff’s liking
Customers contact with shop
Shop strength
Diagram 1 Framework of Interaction between Retailing Salesman and Customer upon Patronage Behavior
3.2 Emotional reactions of customer and benefits to access
Mallalieu, et al (2008) considered that if the sales staff can use the correct interaction strategy with
customers targeting different buying stages of customers, that is in the assessing mind-set stage (identify
needs, gather information, program evaluation stage) to enable the customer to generate full of hope and
optimism emotional responses, in the action mind-se stage (the purchase decision phase) to allow
customers to create happiness and excited positive emotional response, customer will "feel good." [23]
Maintaining an ongoing relationship with salesman can enable customers to access benefits, such as
self-confidence, special treatment and social benefits and so on. The customer access to the highest
benefits above in high-contact, customized personal service (Gwinner, et al., 1998 ).[24] The benefits of
self-confidence includes reducing the perceived risk and anxiety, greater trust and confidence. Special
treatment includes acquiring price reductions, discounts and faster service. Social benefits include a
sense of friendship and familiarity. The more interests gained, the more satisfaction will be got,
customers are more likely to form loyalty to sales staff and store, resulting in patronage behavior.
3.3 Customer perceived service quality and patronage intentions
If the sales staff use the correct approach in the process of interaction with customers, enabling
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customers consider that the sales staff is helpful, who can complete the desired objectives, perceived
quality services are high, will form customer satisfaction ultimately. Good customer perceived service
quality will help customers to complete a purchase, and be likely to form customer loyalty because of
the pleasant shopping experience, it can bring the following benefits to retail enterprises: positive word
of mouth, increasing purchase, withstanding competition. However, if the sales staff’s liking and
professional skills perceived by customer can not establish a positive confidence-building, the customer
is very likely to “vote with their feet” and will not repeat purchasing behavior to the retail business .
4 The Countermeasure and Suggestion to Increase Customer Patronage by
Interactive Experience
Retail business optimization and innovation of interactive marketing can create a unique experience in
consumer shopping, such creative process of shopping experience has achieved by consumers’
perceived for goods value and the improvement of personnel service quality perceptions, as well as
reduction of shopping experience cost. Retail businesses should focus on establishing customer-oriented
marketing concept, strengthening their internal personnel management, as well as supervising the sales
staff to use adaptive marketing strategies to comprehensive optimization innovate to create a unique
competitive advantage.
4.1 To establish a customer-oriented marketing philosophy
In order to help consumers to achieve their objectives, sales personnel should cooperate with consumers
to become their "helpers" rather than competition with consumers to become their "persuader" (Kirmani
and Campbell, 2004).[25] The retail store and sales personnel should establish a customer-oriented
philosophy. Saxe and Weitz (1982) defined customer-oriented marketing is"the extent of the marketing
concept used by sales staff to help customers make their buying decisions and meet customer demand."
[26]
Customer-oriented marketing has the following characteristics: have the aspirations to help
customers making satisfactory purchase decisions; help customers assessing their needs; provide
products that meet customer needs; accurately describe the product; avoid the use of deception,
manipulation of strategy, or high-pressure strategy (Schultz and Good, 2000).[27] The customer-oriented
marketing concept will help build long-term relationship (Williams, 1998). [28] In adopting the of
customer-oriented companies to build long-term relationships with customers, sales persons play a key
role, they express the attitude of business-to-customers through their own actions (Beverland, 2001). [29]
If employees consider that the store’s working environment is a positive, staff commitment and
involvement are high, then under this service atmosphere, employees are more likely to be
customer-oriented (Williams, 1998). [28] Similarly, the positive feedback from customers will enhance
employee’s customer-oriented. Four relevant organizational factors - culture, customer / market
orientation, environment, ethics training - will produce positive effects on customer-oriented marketing
(Weitz, 1978). [30] Therefore, retailers should strive to do the following work: to create the culture
concerning about its customers and customer-oriented which customers need; to empower employees to
solve customer’s problems; to create a mutual staff support atmosphere, to foster a more
customer-oriented sales staff; to educate staff and strengthen the ethical training of moral values, to
influence the ethical behavior of employees.
4.2 To strengthen the internal personnel management of retail enterprise
To strengthen the internal personnel management of retail enterprise, they can focus on the work on the
following aspects:
4.2.1 Hiring the approximate salesman. Contacts and interaction between customers and service
personnel is a key component of service quality. Customer not only concerns about the results of service,
but also concerns about the service process. In the service process, service personnel contact with a large
number of customers directly, the behavior of service personnel is an important part of customer
perceived quality. If the service is "a show", then the service personnel and customers are the actors, and
the customer is the real protagonist. Therefore, service personnel must not only have a strong sense of
387
service, but also have excellent service skills, especially interpersonal contact skills and the ability to
control the situation. Stores should employ the sales staff who is warm, friendly, like working with
people naturally. Such as Jack & Jones clothing store select lovely, energy young girl as its sales staff,
and has a set of training system, to standardize such as the "when and what attitude should be take to say
hello to consumers," and " the attitude of recommendations to consumers, "" the attitude when
consumers trying on "and so on.
4.2.2 Emphasizing on personnel training. In the service business, the staff is ultimately responsible to
provide quality services to meet customer expectations. Their capabilities, expertise, skills, attitudes,
and other supporting condition are the determinants for customer evaluating service quality. Qualified
sales staff is the key to pass the value to customers. The training of enterprises should focus on different
customer preferences to interact between sales staff and customers, thereby establishing relationships
with customers to meet customer demands. Store should improve the interpersonal skills of sales staff
through training, so as to properly handle the relationship with the customer, regard the customer's
problem as their own problems, and threw himself into helping customers to solve the problem.
4.2.3 Cultivating the loyalty of salesman to store. The turnover rate of store sales staff is high, so store
should create a friendly atmosphere for employees through internal marketing, arrange challenging work
and rewarding for sales personnel, fostering loyalty of sales staff to the store. Based on the activities of
Sears (Sears) company-wide, integrated assessment found that employee attitudes improved by 5%,
customer satisfaction upgraded 1%, and the revenues increased 0.5 % (Rucci et al ., 1998). [31] In the
long run, sales staffs better understand their customers than store, have more opportunities to establish
strong relationships bond with customers, can provide more services for customers (Reichheld, 1996).
[32]
4.2.4 Strengthening organizational citizenship behavior. Organizational citizenship behavior is all
relevant positive behaviors of individuals in the organization's (Castro et al, 2004). [33] Organizational
citizenship behavior has four characteristics: willing to tolerate unideal environment, willing to
participate in organizational active, take the initiative to work, take the initiative to help others
(Netemeyer et al., 1997). [34] Organizational citizenship behavior of employee has a positive impact on
customer perception of service quality and customer satisfaction, and then a positive impact on customer
behavior intention, eventually have a positive impact on business.
4.2.5 Empowering to its staff. According to the characteristics of the retail business, it should empower
to its staff reasonably. Reasonable empowering will improve employee satisfaction, enhance the ability
of emergency incidents and provide customers with personalized service, exert the initiative and
creativity of employees, reduce employee absenteeism and turnover, reduce cost and improve
profitability (van Sau-shing, 1999). [35] The purpose of empowering is to enable employees truly
committed to meet customer needs. Successful empowering need to provide the necessary information
to employees so that they will be with better knowledge and ability of service for customer, establish an
effective rewards system simultaneity, make the employee's work performance and rewards closely
linked. Therefore, it can take the empowering as: empowering = power × information × knowledge ×
rewards, the formula shows that four of them are essential for empowering to achieve the desired results
(FAN Xiu-Cheng, 1999). [35]
4.3 Urging employees to adaptive marketing
The traditional "push"-based marketing approach can be described by product type, not fully taking into
account the special needs of customers, can not provide the possible for customers to cross-class
portfolio by their own. So if you can not find the product best suited to customers or sales personnel can
not answer the details of the product, the customer may run away. Successful sales staff can use
adaptive marketing strategies that can aim at the needs of customers to interact with customers. Weitz
stressed that adaptive sale, he believed that the sales process should include the information collection
on potential customers, developing sales strategy, transferring information based on sales strategy,
assessing the impact of information, making adjustments based on the assessment results (Weitz, 1978).
[30]
Therefore, each salesperson needs using different marketing methods according to different
customers, but also need to adjust the sales strategy promptly according to customer's respond. Buyer is
388
the goal-oriented individuals, in different stages of purchasing, buyers have different objectives, sales
staff should have different marketing strategy at different stages of purchasing, so that buyers can expect
to have a positive cognitive, emotional, and behavioral responses, and then conclude a bargain and form
customer loyalty ( table 1).
Table 1 The Relationship Between Correct Behavior of Sales Staff and Buyer-Response
Observing
Buyer response
points
Sales staff’s
Result
Buyers’ goal
Stage
principle
Cognitive
Affective Behavior
The assessing
mind-set stage
Collect,
verify
information
Professional
skills, liked by
customers
Able
to
achieve
objectives
Hopeful
Transferring
Willing to buy,
to purchase satisfying
decision-maki shopping
ng stage
experience, and
total loyalty
The
action Complete the Scarcity,
Able
to Full
of Purchase,
mind-set stage
purchase
social validity
achieve
happiness positive word
Successfully
objectives
of mouth
Source: adapted by Ohn Andy Wood, James S. Boles, Barry J. Babin. The Formation of Buyer's Trust of the Seller
in an Initial Sales Encounter. Journal of Marketing Theory and Practice. 2008 (1) :27-39 Collation.
Sales staff needs to identify the customer purchase stage through questioning, such as asking "what kind
of products do you want, What requirements do you call for," according to customer's answers to
determine whether they are at the assessing mind-set stage or at the action mind-set stage, so as to use
the appropriate marketing strategy.
4.3.1 The customer marketing strategy for the assessing mind-set stage
In the assessment stage, the customer's purpose is to collect, verify related information of the needed
product category, form the choice set which can be used to assess, customers will gather information
carefully. At this stage, sales staff should firstly use their own product knowledge / expertise to help
them, let customers to trust and like them, think that the salesman is helpful. Salesman can use FABE
formula during product promotion that is from the product feature, advantage, benefit, related evidence
to introduce gradually, for customer simply to master the necessary information.
4.3.2 The customer marketing strategy for the action mind-set stage.
In the action mind-set stage, the customer's purpose is to successfully complete the transaction,
customers will look for consistency with the specific task. At this stage, sales staff can use " DIPADA "
or " IDAPA " formula during product promotion. " DIPADA " formula is based on definitely identified
and clearly stated customer needs and desires (Definition), to interconnect the customer's needs and
desire and promoted product (Interconnection), to prove that the selling products can meet the
customer's requirements (Proof), to urge customers accepting selling products to meet their needs
(Acceptance), to inspire buying desire of customers (Desire), to carry on interacting by the customers
buying action order (Action). “IDAPA” formula is a simplified formula of "DIPADA". To adopt
"IDAPA" formula, it begins at the order of interact, identification (Identification), display,
demonstration, demonstration (Demonstration), elimination of unwanted products (Elimination), proof
(Proof), action (Action) gradually.
In facilitating the transaction stage, the sales staff should urge customers to buy by emphasizing the
scarcity of products or services and the principle of social effectiveness, because resources are always
limited, people are more desirable to get the things which are more difficult to get. Social comparison
theory suggests that people evaluate the correctness of their decision-making and behavior by the
standard of people who similar as themselves. As a result of the correct interaction, customers bring
positive emotional responses with happy and excited, thus closing the purchase, and ultimately forming
loyalty probably because of a pleasant shopping experience.
5 Conclusion
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This paper built theoretical models of function mechanism of interaction between retailing salesman and
customer upon patronage behavior, the service level of sales staff affects the perceptions of store service
quality of customer, satisfaction level and intentions of store patronage. Retail enterprises should
establish customer-oriented marketing philosophy, strengthen internal management, supervise the sales
staff using adaptive sales strategy, to allow customers obtaining an enjoyable shopping experience, to
stimulate the purchase desire of consumers and create unique competitive advantage.
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