ISSN Vol.03,Issue.15 July-2014, Pages:

Size: px
Start display at page:

Download "ISSN Vol.03,Issue.15 July-2014, Pages:"

Transcription

1 ISSN Vol.03,Issue.15 July-2014, Pages: Relationship between Carpet-Sellers Behavior with Customer Satisfaction (Case Study: Carpet Shops in Markazi Province, Iran) MEISAM RANJBARI 1, MOHAMMAD AHMADI 2, AWJAN KARIMI 3, AMIRHOSSEIN AFSHAR 4 1 MA Graduate of MBA Strategic, Payam Noor University, Iran, meisam.b1@yahoo.com. 2 PhD of Business Management, Asst Prof & Faculty Member, Payam Noor University, Iran. 3 PhD of Business Management, Asst Prof & Faculty Member, Payam Noor University, Iran. 4 MA Graduate of MBA, Iran. Abstract: Customer satisfaction has changed into an important issue in competition market. Therefore, organizations require information to recognize customers, understand their needs and expectations so that they can search for the ways to meet their needs. This research has investigated into different aspects of carpet-sellers behavior with Thus, some hypotheses have been developed based on seller behavior including idealized influence behavior, inspirational motivation behavior, intellectual stimulation behavior, individualized consideration behavior, and smart selling behavior with customer Considering classification based on objectives, the research uses an applied method. In terms of classification based on data collection, the research is a descriptive survey. To collect data, a questionnaire was used. A sample including 50 carpet-sellers and 100 customers were selected (i.e., two customers for each seller). This data collection method is a modern one that has provided valuable results. The results indicate the direct effect of idealized influence behavior, intellectual stimulation behavior, inspirational motivation behavior, individualized consideration behavior, and smart selling behavior on Keywords: Seller Behavior; Idealized Influence Behavior; Inspirational Motivation Behavior; Intellectual Stimulation Behavior; Individualized Consideration Behavior; Smart Selling Behavior; Customer Satisfaction. I. INTRODUCTION Following the classical economy together with increasing competition intensity in modern dimensions, customer has become a main element and central to all organizational activities. It is due to the fact that customer satisfaction can increase the number of customers referring to an enterprise and, as a result, enhance its rate of profit in the long run. Therefore, to increase their rates of sale and profit in the market, enterprises have to adapt themselves to customer needs and expectations [9]. Peter Drucker knows the cost of attracting a new customer five times as much as the cost of satisfying a current customer of a firm. However, most sellers merely pay much more attention to attracting new customers than preserving the existing ones. It appears that they mainly focus on sale instead of developing relations with customers for their satisfaction [6]. This research deals with the issue from a new aspect that is, investigating into the effects of definite sellers behavior on the customers referring to them. A seller who can attract customers, convince them to buy and, consequently, develop their satisfaction has a competitive advantage over others [9] [12]. Therefore, sellers and enterprises have to control their interactions with customers so that they can provide their customers satisfaction and loyalty through proper understanding of their needs and values. In this way, they may prevent their customers from being attracted to other sellers. For this reason, the quality of a seller s relationship and significance of his behavior have strongly received attention by scientific communities and enterprises [2]. On the other hand, since selling is the stage of achieving results from all business processes in an organization and considered as its communication front, it is a quite critical task. Losing a customer is not just losing the sale of an item. However, it goes well beyond, and the seller may lose all the buying processes that the customer could have had lifetime [6]. Taking into account what mentioned above, one of the ways to develop and promote customer satisfaction is seller s proper behavior towards them. Sellers have to control their interactions with customers and provide them with valuable products and services. Consequently, they may prevent their customers from being attracted to competitor sellers [2]. Given the great significance of the issue, the current research intends to study the relationship between carpet-sellers behavior and the rate of A small number of researches have been conducted on seller s behavior. In this field, a research titled the influence of salesperson 2014 SEMAR GROUPS TECHNICAL SOCIETY. All rights reserved.

2 MEISAM RANJBARI, MOHAMMAD AHMADI, AWJAN KARIMI, AMIRHOSSEIN AFSHAR leadership as a customer interaction behavior on sales performance was carried out by Davis Dyreen as his PhD dissertation in business management at Nova Southeastern University in It indicates that a salesperson s behavioral factors have positive effects on sales performance. That is, sales performance improves as each of a seller s behavior elements increases [3]. Moreover, Tajzadeh-Namin et al. (2010) in a research on audiovisual equipment showed that sellers behavior (also tested as five hypotheses in the present research) is related to their performance, and it is only intellectual stimulation behavior that has no relationship with performance [15]. A. Customer satisfaction and seller behavior Buyer-seller relationship has been widely studied by management experts since Most researchers concluded that many profitability variables such as marketing cost reduction, inflexible prices, loyalty, and so forth are bound to building and sustaining relationship between customer and seller. These cases develop when buyer-seller relationship is long-term and creates liability [2]. On the one hand, severe competition existing in every business nowadays may develop stronger relationship between seller and customer [8]. This leads to the acquisition of valuable information regarding customer needs and how to meet them which may, in it, develop buyer s strong commitment to seller [3]. B. Seller behavior Sellers can influence the effectiveness of the process through using different behavioral models in interaction between them and buyers. Interaction behavior provided by sellers towards their customers is an effective factor in customer satisfaction [1]. In 2008, Davis Dyreen studied the effects of seller behavior towards customer on sales performance. He understood that seller s interaction behavior towards customer has a positive effect on sales performance. Considering the thematic literature on sellerbuyer interactions, seller behavior has five cases as follows: 1. Idealized influence behavior This behavior points to a seller s charismatic behavioral features with idealistic sources. It involves some features such as high levels of confidence and will, sales talent, absence of internal conflicts with sales attitudes, and strong belief in sales objectives. Characteristics, advantages, and interests of the product offered by the seller can also influence the effectiveness of these behaviors. By means of such features, we may change customers attitude and promote their awareness of the objectives and perspectives of the firm [3]. 2. Intellectual stimulation behavior Sellers should have inherent commitment in a logical framework to simulate the values of customers and encourage their ideas towards buying. Sellers should stimulate customers for creative selection and also prepare their minds for buying. This happens when sellers encourage customers to keep their minds open and use their imagination power to explore new ways to solve their problems. The task is fulfilled through assisting customers to find solutions for their challenges [3]. 3. Inspirational motivation behavior In this case, sellers encourage customers through motivational incentives and providing them with proper choices, and customers become committed and loyal concerning their buying process [3]. 4. Individualized consideration behavior A seller acts as a support for customers and actively helps them with care, as a trainer and guide, to meet their needs. Sellers develop their relations with customers in the form of establishing personal relationship with each of them and understand their customers worries and try to remove them. Thus, individualized considerations are a seller s attempts to recognize and fulfill each customer s needs [3]. 5. Smart selling behavior A seller shows such a behavior through changing his view and adapting his selling behavior to customer s conditions and transaction type during his relationship with the customer. In this way, he attempts for sales by using available opportunities and adopts an appropriate selling behavior by evaluating the conditions. Therefore, given the existing conditions, he displays proper behavior and adapts himself to them [3]. Based on the different selling behaviors mentioned above, some hypotheses were formulated, whose testing may help the researcher to achieve the research objectives. These hypotheses are as follows: Fig.1. Research conceptual model. Volume.03, IssueNo.15, July-2014, Pages:

3 Relationship between Carpet-Sellers Behavior with Customer Satisfaction (Case Study: Carpet Shops in Markazi Province, Iran) i. Main hypothesis: A carpet-seller s interaction behavior affects customer ii. Subordinate hypotheses H1: A carpet-seller s idealized influence behavior affects H2:A carpet-seller s intellectual simulation behavior affects H3:A carpet-seller s inspirational behavior affects customer H4: A carpet-seller s individualized consideration behavior affects H5:A carpet-seller s smart selling behavior affects customer The components mentioned in the hypotheses above have been obtained from Davis Dyreen s research. The present study aims to test the effect of the foregoing five types of behavior on carpet customers These behaviors are mentioned as five components in the following conceptual model. II. RESEARCH METHODOLOGY This research is of applied type, and is also a descriptive survey with respect to data collection. Its data collection method involves both primary and secondary sources. The primary data were collected through questionnaire. Secondary data including books, journals, papers, and theses were used for collecting the theoretical principles. In this research, two types of questionnaire have been used; one for the sellers and the other for the customers of the same sellers. Using these two types of questionnaire to collect the required data is considered an innovation of the research. To acquire data on selling behavior and rate of customer satisfaction, 50 questionnaires were distributed between the selected carpet shops and also 100 questionnaires between their customers. That is, two customers completed the questionnaire for each carpet shop. To measure the validity of the questionnaires, content validity method was used. Therefore, the designed questionnaires were forwarded to the competent theorists. They confirmed the validity of the questionnaires by studying the questions. For the measurement of their reliability, Cronbach s alpha coefficient was applied. It was 91.8% for the carpet-sellers questionnaire and 91.6% for their customers questionnaire. It may be stated that the questionnaires have a high validity. The statistical population of the research includes all the salespeople owning carpet shops, and their corresponding customers, in Markazi Province, Iran. Given the largeness of each city and number of its sellers, random sampling method was used proportional to the size of sellers. To test the hypotheses, Spearman s correlation coefficient was used. Using this test, the relationship between research variables was examined. Moreover, binomial test was used for recognizing the rate of customer satisfaction and types of behavior observed on the part of the sellers. III. RESEARCH FINDINGS To test the research hypotheses, Spearman s correlation coefficient was used, because the data related to recognizing the rate of customer satisfaction and types of sellers behavior were measured through Likert Spectrum. Concerning rank variables, Spearman Test seems more appropriate. The results of these tests are shown in Table 1. TABLE I. Spearman s Correlation Coefficient to Test the Relationship between Various Types of Sellers Behavior and Customer Satisfaction As the test validity is less than in all the hypotheses, it may be concluded that there is a significant relationship between all types of behavior and Since all the foregoing correlation coefficients are positive, it can be stated that these behaviors have direct effects on Because seller-customer interaction consists of the above mentioned five components, it may be inductively concluded that seller s interaction behavior toward customers influences On the other hand, the correlation coefficient of individualized consideration behavior is higher than that of other behaviors. Hence, the effect of individualized consideration behavior on customer satisfaction is higher than that of other types. In addition to finding relationship between independent and dependent variables, this research has dealt with relationship between the independent variables (i.e., idealized influence behavior, intellectual stimulation behavior, inspirational motivation behavior, individualized consideration behavior, and smart selling behavior) with one another. Studying these relationships clarified some other aspects of the issue. To examine the relationship between these variables, Spearman s correlation test was used. As illustrated in Table 2, the squares on diameters show the relationship between each variable with itself, which is not currently considered in this research? The squares marked with dash (-) indicate the absence of relationship between variables. Moreover, the squares with numbers show relationships between the variables, where the number denotes the correlation coefficient between both variables. It is observed that there is no relationship between carpetseller s intellectual stimulation behavior with their other types of behavior (i.e., idealized influence behavior, inspirational motivation behavior, individualized consideration behavior, and smart selling behavior.) With the exception of intellectual stimulation behavior, other variables are directly related to one another. Volume.03, IssueNo.15, July-2014, Pages:

4 MEISAM RANJBARI, MOHAMMAD AHMADI, AWJAN KARIMI, AMIRHOSSEIN AFSHAR TABLE II. Spearman s Correlation Coefficient between Independent Variables IV. CONCLUSION This research could analyze the relationship between different types of carpet-seller s behavior with customer satisfaction, and determine which one attracts customer satisfaction more than others do. Therefore, research objectives have been fulfilled. The results corresponded with those of the former researches, including the one conducted by Davis Dyreen. Also, Davis obtained similar results and confirmed the relationship between all types of a seller s behavior with Moreover, the results obtained by Tajzadeh-Namin are similar to those of the present research in many cases. It can be stated that similar results may clarify various fields of sellers behavior. As one of its differences from those conducted by Tajzadeh-Namin and Dyreen, the current research showed that individualized consideration behavior has the maximum relationship with This is a point about which previous researches have made no statement. According to the research findings, valuable strategies can be suggested for those who are working in carpet business. Sellers are advised to consider the following strategies to maintain and attract more customers: 1. In behaving towards customers, they should observe honesty and truthfulness. They should also try to gain adequate knowledge of the products and improve their skills in the field of carpet business. Since individualized consideration behavior had the highest relationship with customer satisfaction, sellers should pay attention to customers interests, consider the difference between customers demands, and allocate enough time for each customer. In this case, sellers may expect to gain their customers 2. Due to the significance of intellectual stimulation behavior, it is necessary for sellers to provide customers with complete knowledge of various brands and, more importantly, consider customers needs based on their demands for the product. One of the components of the smart selling is to consider and understand customers demands, which this research showed its relationship with The researchers who intend to conduct such studies in future are suggested to carry out the same in other provinces throughout Iran and compare their results with those of the present research. Also, it is better to conduct this research about selling other products and services, especially in the area of selling to organizations (B-to-B). The current research has merely studied a seller s interaction behavior in seller-customer transactions. Future researchers are suggested to study the role of modern marketing methods and relations in interactions between sellers and customers. More generally, customer satisfaction cannot be fulfilled just through seller behavior. However, other factors such as product quality, shop atmosphere, advertisement support, brand reputation and the like, as a general set, may also influence Future researches are advised to consider all the foregoing cases as a set and examine the effects of all these variables on customer satisfaction through structural equation tests with a holistic approach. V. REFERENCES [1] BARTON A. Weitz, BRADFORD, Kevin D. Personal selling and sales management: A relationship marketing perspective. Journal of Academy of Marketing Science, 1999, 27(2): [2] CHIU Hang-Chang, HSIEH Yi-Hing, LIYA Chuan, LEE Monle Relationship between marketing and customer switching behavior,. Journal of Business Research, 2005, 58(12): [3] DAVIS Dyreen. The influence of salesperson leadership as a customer interaction behavior on sales performance, PhD Dissertation, Nova Southeastern University, [4] DUFFY Dennis L. The evolution of customer loyalty strategy. Journal of Consumer Marketing, 2005, 22(5): [5] HILL N. Handbook of customer satisfaction measurement. Gower Publishing Limited, Hampshire. [6] KOTLER Philip, ARMSTRONG Gary. Principles of marketing, 13 th ed., Pearson Prentice Hall, [7] NARAYANDAS Das, RANGAN Kasturi. Building and sustaining buyer seller relationships in mature industrial markets. J Mark, 2004, 68(3): [8] NDUBISI, NO. Factorial and discriminant analyses of the underpinnings of relationship marketing and customer International Journal of Bank Marketing, 2005, 23(7): [9] PARK Jeong, EUN- DEITZ, Dgeorge. The Effect of Working Relationship Quality on Salesperson Performance & Job Satisfaction: Adaptive Selling Behavior in Korean Automobile Sales Representative. Journal of Business Research, 2006, 59(20): [10]RESEL,Resh Zabkar. Managing customer loyalty through the meditation role of satisfaction in the DIY retail Volume.03, IssueNo.15, July-2014, Pages:

5 Relationship between Carpet-Sellers Behavior with Customer Satisfaction (Case Study: Carpet Shops in Markazi Province, Iran) loyalty program. Journal of Retailing on Customer Service, 2009, [11] SHU-CHING, Chen. The customer satisfaction-loyalty relation in a interaction e-service setting the media, Journal of Retailing on Customer Service, 2012, 19(2): [12]POWERS Thomas L., REAGAN William R. Factors influencing successful buyer seller relationships. Journal of Business Research, 2007, 60(12): [13] WALTER Achim, RITTER Thomas. The influence of adaptations, trust, and commitment on value-creating functions of customer relationships. J Bus Ind Mark, 2003, 18(4/5): [14] LU Yan, SEOCK Yoo-Kyoung.The influence of grey consumers service quality perception on satisfaction and store loyalty behavior. International Journal of Retail and Distribution Management, 2008, 36 (11): [15] TAJZADEH-NAMIN Abolfazl; TAJZADEH-NAMIN Aidin; MARTAEI-GHAREHBALAGH, Reza. Relationship between seller-customer interaction with salesperson performance (case study: audiovisual equipment). Journal of Business Management, 2000, 2(60): [in Persian]. Volume.03, IssueNo.15, July-2014, Pages: