- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
The Effect of Salesperson Control System on Customer-oriented Selling Behaviors and Sales Performance in Pharmaceutical Distribution Channel
Hong, Geum-Pyo
Yi, Ho-Taek
Abstract
Purpose - Recently, domestic pharmaceutical market is growing steadily, but top-tier companies are concentrating on sales growth. In this market, SMEs, which account for more than 80% of the entire market, suffer from the problem of lower margins and increasing inventory costs. According to the government's policy changes related to pharmaceuticals, it is pointed out that the management of existing customers and the control of salespeople are important issues for pharmaceutical companies. This study investigates the effect of the control system on the salesperson in domestic pharmaceutical distribution channel on customer-oriented selling behaviors and sales performance. Research design, data, and methodology - To verify the proposed research model and test hypotheses, the authors selected 244 MR(medical representatives)'s responses which have currently relationship with doctors or pharmacists. This study carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. Results - The authors find out the following results: capacity control, activity control, and self control have positive effects on customer-oriented selling behaviors and customer-oriented selling behaviors have a positive effect on sales performance. In addition, we present alternative model to check the direct effect between the control systems and the sales performance, but control system factors except self control have no direct influence. Conclusions - First of all, competency control and activity control increases the customer-oriented selling behavior of the salesperson. This means that the salesperson's sales skill, negotiation skill, customer access skill, presentation ability, monitoring, direction and evaluation are important and it is also important to control activities to check the number of visits to customers, report preparation, and customer service etiquette. Second, the fact that self-control of salesperson affects the customer-oriented selling behavior suggests that self-control is not controlled by external factors but rather establishes short/long-term goals. Therefore, it is important for sales organization to create an environment in which members can induce persistent incentives for self-control. Finally, output control did not affect customer-oriented sales behavior, which is less likely to form confidence or motivation to MRs when output control is perceived as a means of monitoring, supervising, or controlling rather than providing information to salespeople.
- keywords
- Pharmaceutical Distribution Channel, Control System(Formal Control and Informal Control), Customer-oriented Selling Behavior, Sales Management
Reference
Agarwal, S. (1999). Impact of job formalization and administrative controls on attitudes of industrial salespersons. Industrial Marketing Management, 28(4), 359-368.
Anderson, E., & Oliver, R. L. (1987). Perspectives on behavior-based versus outcome-based salesforce control systems. Journal of Marketing, 51(4), 76-88.
Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74-94.
Brown, T. J., Mowen, J. C., Donavan, D. T., & Licata, J. W. (2002). The customer orientation of service workers:Personality trait effects on self-and supervisor performance ratings. Journal of Marketing Research, 39(1), 110-119.
Carver, C. S., & Scheier, M. F. (1982). Control theory: A useful conceptual framework for personality–social, clinical, and health psychology. Psychological Bulletin, 92(1), 111-135.
Cha, Jae-Bin, Ryu, Ga-Yeon, & Lee, Hoon-Young (2013). An empirical study on the relationship effect of pharmaceutical sales representative’s personal-job fit / person-organization fit and job satisfaction, organizational commitment, and turnover intentions. Korea Journal of Business Administration, 26(3), 567-588.
Challagalla, G. N., & Shervani, T. A. (1996). Dimensions and types of supervisory control: Effects on salesperson performance and satisfaction. Journal of Marketing, 60(1), 89-105.
Child, J. (1984). Organization. London: Harper Row.
Choi, Nak-Hwan (1997). The mediating roles of organization commitment and adaptation level on the salespeople’s customer-oriented behavior. Korea Marketing Review, 12(2), 43-65.
Cravens, D. W., Lassk, F. G., Low, G. S., Marshall, G. W., & Moncrief, W. C. (2004). Formal and informal management control combinations in sales organizations: The impact on salesperson consequences. Journal of Business Research, 57(3), 241-248.
Dalton, G. W., & Lawrence, P. R. (1971). Motivation and Control in Organizations. Homewood, IL: Richard D. Irwin, Inc.
Deci, E. L., & Ryan, R. M. (1985). The general causality orientations scale: Self-determination in personality. Journal of Research in Personality, 19(2), 109-134.
Deshpande, R., Farley, J. U., & Webster Jr, F. E. (1993). Corporate culture, customer orientation, and innovativeness in Japanese firms: a quadrad analysis. Journal of Marketing, 57(1), 23-37.
Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research, 18(2), 382-388.
Hair, J. F., Black. B., Anderson, R., & Tatham, R. (2006). Multivariate data analysis (6th ed.). New York:Prentice-Hall.
Health Insurance Review and Evaluation Center (2015). A survey on distribution status and cost structure of pharmaceutical wholesalers in domestic market. Retrieved December 1, 2016, from https://www.pwc.com/us/en/health-industries/top-health-industries-issues/assets/pwc-hri-medical-cost-trend-2015.pdf
Henderson, J. C., & Lee, S. (1992). Managing I/S design teams: a control theories perspective. Management Science, 38(6), 757-777.
Hoffman, K. D., & Ingram, T. N. (1991). Creating customer-orientated employees: the case in home health care. Journal of Health Care Marketing, 11(2), 24-32.
Jaworski, B. J. (1988). Toward a theory of marketing control: environmental context, control types, and consequences. Journal of Marketing, 52(3), 23-39.
Jaworski, B. J., & Kohli, A. K. (1991). Supervisory feedback: Alternative types and their impact on salespeople's performance and satisfaction. Journal of Marketing Research, 28(2), 190-201.
Jaworski, B. J., & MacInnis, D. J. (1989). Marketing jobs and management controls: toward a framework. Journal of Marketing Research, 26(4), 406-419.
Keillor, B. D., Parker, R. S., & Pettijohn, C. E. (1999). Sales force performance satisfaction and aspects of relational selling: Implications for sales managers. Journal of Marketing Theory and Practice, 7(1), 101-115.
Kelley, S. W. (1992). Developing customer orientation among service employees. Journal of the Academy of Marketing Science, 20(1), 27-36.
Kline, R. B. (1998). Principles and Practice of Structural Equation Modeling, New York: Guilford Press.
Kohli, A. K., & Jaworski, B. J. (1990). Market orientation:the construct, research propositions, and managerial implications. Journal of Marketing, 54(2), 1-18.
Kohli, A. K., Shervani, T. A., & Challagalla, G. N. (1998). Learning and performance orientation of salespeople:The role of supervisors. Journal of Marketing Research, 35(2), 263-274.
Kotler, P. (1994). Marketing management: analysis, planning, implementation, and control, Englwood Cliffs, NJ:Prentice-Hall, Inc.
Lawler, III. E. D. (1990). Strategic pay: aligning organizational strategies and pay systems. San Francisco: Jossey-Bass
Lee, Hak-Sik, Kim, Hyo-Soon, & Jung, Joo-Hoon (2000). The structural relationships between control types over industrial salespersons, their responses, and job-related consequences. Korea Marketing Review, 15(1), 51-83.
Lee. Ihn-Goo (2015). The effects of supervisors’ feedback on salespeople’s SOCO. Korean Management Consulting Review, 15(1), 30-34
Levitt, T. (1980). Marketing success through differentiation of anything, Harvard Business Review, 58(1), 82-91.
Locke, E. A., & Latham, G. P. (1990). A theory of goal setting & task performance. Upper Saddle River, NJ:Prentice-Hall.
Lusch, R. F., & Jaworski, B. J. (1991). Management controls, role stress, and retail store manager performance. Journal of Retailing, 67(4), 397.
Merchant, K. A. (1985). Control business organizations. Marshfield, MA: Pitman Publishing.
Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54(4), 20-35.
Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). New York: McGraw-Hill.
O'Hara, B. S., Boles, J. S., & Johnston, M. W. (1991). The influence of personal variables on salesperson selling orientation. Journal of Personal Selling & Sales Management, 11(1), 61-67.
Oliver, R. L., & Anderson, E. (1994). An empirical test of the consequences of behavior-and outcome-based sales control systems. Journal of Marketing, 58(4), 53-67.
Park, Poong-Sik, Chung, Dong-Seop, Ryu, Tae-Mo, & Song, Jyung-Soo (2009). An empirical study on the influence of strategy type, sale force capability, organizational structure, and the business performance in pharmaceutical industry. Journal of Human Resource Management Research, 16(3), 101-122.
Ramaswami, S. N. (1996). Marketing controls and dysfunctional employee behaviors: a test of traditional and contingency theory postulates. Journal of Marketing, 60(2), 105-120.
Saxe, R., & Weitz, B. A. (1982). The SOCO scale: A measure of the customer orientation of salespeople. Journal of Marketing Research, 19(3), 343-351.
Sujan, H., Weitz, B. A., & Kumar, N. (1994). Learning orientation, working smart, and effective selling. Journal of Marketing, 58(3), 39-52.
Yoo, Chang-Jo, Youn, Dong-Gi, & Yeo, Jun-Sang (2008). A structural model of salesperson characteristics, sales behavior, and sales performance: extension of prior model. Korea Marketing Review, 23(1), 1-21.
Yoo, Dong-Keun, Lim, Jong-Koo, & Lim, Ji-Hoon (2007). The structural relationships between control types over salespeople, their responses, and job satisfaction – mediating roles of role clarity and self-efficacy. Journal of Global Academy of Marketing Science, 17(4), 23-49.
Yoo, Myung-Keun, Park, Un-Yong, & Lim, Byung-Hoon (2010). A study on the effect of education and individual ability on job commitment of salesmen. Corporation Management Review, 17(1), 103-123.
Zablah, A. R., Franke, G. R., Brown, T. J., & Bartholomew, D. E. (2012). How and when does customer orientation influence frontline employee job outcomes? A meta-analytic evaluation. Journal of Marketing, 76(3), 21-40.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations