[PDF] THE IMPACT OF SALESPERSON LISTENING

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THE IMPACT OF SALESPERSON LISTENING:

A MULTI-FACETED RESEARCH

APPROACH

by

EMILY A. GOAD

Presented to the Faculty of the Graduate School of The University of Texas at Arlington in Partial Fulfillment of the Requirements for the Degree of

DOCTOR OF PHILOSOPHY

THE UNIVERSITY OF TEXAS AT ARLINGTON

May 2014

ii

Copyright © by Emily A. Goad 2014

All Rights Reserved

iii

Acknowledgements

First, I would like to thank my family, especially my parents, for their unending support throughout this process. I could not have completed the doctoral program without you. Also I want to acknowledge Vito and Lucy, your companionship has made a difference every day. Also, and as importantly, my deepest and sincerest gratitude goes to my Advisor, Dr. Fernando Jaramillo, I feel privileged to have worked under your guidance, and for introducing me to sales research and researchers. I could not have made it through this process without your time, understanding, encouragement, unconditional support, and personal guidance. I am also very grateful to my committee, Dr. Chonko, Dr. Yang, and

Dr. Whiteside, for your time and feedback.

Furthermore, I am very grateful to Dr. Briggs, Dr. Freling, and Dr. Grisaffe; you all have nurtured and supported me throughout my doctoral program. Additionally, I would like to thank the Marketing Department at the University of Texas at Arlington; the department has provided a supportive environment in which to prosper. Furthermore, I would like to recognize all of my National Conference in Sales Management (NCSM) friends, you have provided guidance and more importantly support throughout my doctoral program. Likewise, I would like to thank my co-hort: Rebecca and Tanzeeb; I feel fortunate to have experienced this process along with you.

May 7, 2014

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Abstract

THE IMPACT OF SALESPERSON LISTENING:

A MULTI-FACETED RESEARCH

APPROACH

Emily A. Goad, PhD

The University of Texas at Arlington, 2014

Supervising Professor: Fernando Jaramillo

Relationships are based on communication between parties; an important aspect of communication that is necessary for building long-term relationships is listening (Ingram et al. 1992). with their customers are strengthened when salespeople consistently have effective listening skills (Ramsey and Sohi 1997; Marshall et al. 2003). Given the importance of listening in relationship building and the sales context, this dissertation examines salesperson listening from varying research approaches in three essays. First, a meta- analysis was conducted to synthesize existing empirical research on listening to empirically assess the research stream of salesperson listening. This meta-analysis framework that surrounds salesperson listening, thus advancing listening theory. Next, relying on relationship marketing theory (Morgan and Hunt 1994; Palmatier et al. 2006), and the dual process theory of supportive message outcomes (Bodie 2009), the second essay proposes and tests a cascading model of listening that incorporates previous s suggestions that listening is a process, instead of a higher order construct. Results show that salesperson listening is a process with only the behavioral component v (responding), having a positive impact on both customer satisfaction and customer loyalty to the firm. Furthermore, it is shown that a lack of salesperson diligence actually diminishes the positive effect of the responding aspect of listening on customer satisfaction. Lastly, the third essay updates and extends Drollinger, Comer, and Warrington (2006)ctive Empathetic Listening (AEL) scale showing that the responding component of listening is not only comprised of verbal behaviors, but also nonverbal behaviors and the use of technology. New items reflecting nonverbal behaviors and technology are incorporated into the AEL scale. Furthermore, a model is tested with the updated responding dimension of salesperson listening and the temporal aspects of listening which occur pre- and post- interaction. Previous research has suggested that there are temporal dimensions of listening, but this is the first paper to test these dimensions and the resulting impact on salesperson performance. Results indicate that responding dimension of listening is preceded by pre-interaction salesperson behaviors, and followed by post-interaction salesperson behaviors which have a positive impact on salesperson performance. vi

Table of Contents

Acknowledgements .............................................................................................................iii

Abstract .............................................................................................................................. iv

List of Illustrations .............................................................................................................. ix

List of Tables ....................................................................................................................... x

Chapter 1 Essay 1: A Synthesis of Research on Listening ................................................ 1

The Process of Salesperson Listening ........................................................................... 4

Method ............................................................................................................................ 6

Collection of Studies ................................................................................................... 7

Effect Size Metric and Coding .................................................................................... 8

Effect Size Metric ................................................................................................... 8

Coding Procedure .................................................................................................. 8

Bivariate Analysis ....................................................................................................... 9

Results ........................................................................................................................ 9

Discussion ...................................................................................................................... 9

Chapter 2 Essay 2: A Cascading Model of Listening ........................................................ 13

Conceptions of Listening .............................................................................................. 15

Dimensions of Listening ........................................................................................... 15

Sensing ................................................................................................................ 15

Evaluating ............................................................................................................ 16

Responding .......................................................................................................... 16

Cascading Model of Listening ...................................................................................... 16

Listening and Its Relationship with Satisfaction and Loyalty .................................... 17

Listening, Customer Satisfaction, and Customer Loyalty to the Firm .................. 18

Moderating Effect of Diligence ................................................................................. 19

vii

Method .......................................................................................................................... 20

Sample ..................................................................................................................... 20

Measures .................................................................................................................. 21

Results .......................................................................................................................... 24

Moderation Analyses ................................................................................................ 25

Discussion .................................................................................................................... 26

Future Research Directions .......................................................................................... 28

Chapter 3

Relational Listening Scale in Sales ................................................................................... 29

The Evolution of Salesperson Listening ....................................................................... 31

A Theoretical Model of Relational Listening in Sales ................................................... 34

Macro-Level Processes ............................................................................................ 35

Pre-Interaction Processes .................................................................................... 35

During Interaction Processes ............................................................................... 36

Post-Interaction Processes .................................................................................. 37

Micro-Level Processes ............................................................................................. 37

Cognitive and Affective Processes ...................................................................... 38

Behavioral Processes .......................................................................................... 39

Preliminary Work .......................................................................................................... 43

Study 1: Survey of Customers ...................................................................................... 44

Procedure ................................................................................................................. 44

Measurement ............................................................................................................ 44

Purification ................................................................................................................ 45

Study 2: Survey of Salespeople ................................................................................... 46

Procedure ................................................................................................................. 46

viii

Measurement ............................................................................................................ 48

Analysis .................................................................................................................... 49

Study 3: Survey of Salespeople ................................................................................... 51

Questionnaire ........................................................................................................... 52

Validation Constructs ........................................................................................... 52

Exploratory Factor Analysis ................................................................................. 54

Confirmatory Factor Analysis ............................................................................... 56

Structural Model ................................................................................................... 56

Nomological Validity ............................................................................................. 56

Discussion .................................................................................................................... 59

References ........................................................................................................................ 63

Biographical Information ................................................................................................... 68

ix

List of Illustrations

Figure 1-1 Chinese Symbol for Listening ............................................................................ 1

Figure 2-1Listening Dimensions and Related Outcomes ................................................. 20

Figure 3-1 Theoretical Model of Relational Listening (Halone and Pecchioni 2001) ........ 42 Figure 3-2 A Conceptual Model of Salesperson Relational Listening .............................. 57 x

List of Tables

Table 1-1 Some Definitions of Listening* ............................................................................ 2

Table 1-2 Select Studies Examining the Antecedents and Outcomes of Listening ............ 6

Table 1-3 Meta-Analytic Correlations for the Study Samples ........................................... 11

Table 1-4 Meta-Analytic Correlations for the Relationships with Salesperson Listening . 12

Table 2-1 Correlations and Descriptive Statistics ............................................................. 22

Table 2-2 Scale Items and Statistics ................................................................................. 23

Table 2-3 Model Results: Standardized Estimates ........................................................... 26

Table 3-1 Characteristics of Study 1 ................................................................................. 46

Table 3-2 Characteristics of Studies 2 and 3 .................................................................... 48

Table 3-3 Study 2: Correlations between Relational Listening Dimensions and Validation

Measures .......................................................................................................................... 51

Table 3-4 Scale Items and Statistics ................................................................................. 54

Table 3-5 Study 3: Correlations and Descriptive Statistics ............................................... 58

Table 3-6 Model Results: Standardized Estimates ........................................................... 59

1

Chapter 1

Essay 1: A Synthesis of Research on Listening

Listening is a critical skill that if used effectively, creates trusting relationships with customers, results in customer satisfaction, greater anticipation of future interactions, Sohi 1997; Shepherd et al. 1997; Castleberry et al. 1999; De Ruyter and Wetzels 2000; Aggarwal et al. 2005; Pelham and Kravitz 2008). In fact, Marshall et al. (2003) find that listening skills are the most important skill that successful salespeople possess. On the other hand, poor listening skills are one of the most significant factors contributing to salesperson failure (Ingram et al. 1992). The notion of listening dates back to ancient China and its importance has been posited not only by academicians, but also government and popular press. Ancient eye, heart, and undivided attention (Navarro 2010; U.S. Department of State 2012). This illustrates that listening goes beyond simply what one hears; according to the U.S. give u

Figure 1-1 Chinese Symbol for Listening

2 Researchers have crafted many definitions for listening, in fact Bodie and Gearhart (2011) definitions of listening are almost as abundant as

Table 1-1 provides samples of these

definitions of listening, from varying perspectives. Although these definitions are diverse, they all seem to have a common theme: listening is a multi-dimensional process involving cognitions, affect, and responses both verbal and nonverbal (Bodie and Gearhart 2011).

Table 1-1 Some Definitions of Listening*

Source Definition

Comer and Drollinger

(1999, p. 18) Active empathetic listening is a process whereby the listener: receives verbal and nonverbal messages, processes them cognitively, responds to them verbally and nonverbally, and attempts to assess their underlying meaning intuitively by putting

International Listening

Association (1996)

Listening is the process of receiving,

constructing meaning from and responding to spoken and/or nonverbal messages. Yrle and Galle (1993) Active listening means listening well and demonstrating an interest in what is being said.

Castleberry and

Shepherd (1993, p.

36)

The cognitive process of actively sensing,

interpreting, evaluating, and responding to the verbal and nonverbal messages of present or potential customers. Hennings (1992, p. 3) To listen is not just to hear; it is the active construction of meaning from all the signals verbal and nonverbal a speaker is sending.

Lewis and Reinsch

(1988, p. 58)

A set of interrelated activities, including

apparent attentiveness, nonverbal behavior, verbal behavior, perceived attitudes, memory, and behavioral responses.

The Institute of

Financial Education

(1988, p. 88)

The process of receiving sights and sounds,

attending to them, and assigning meaning. 3 Devine (1978, p. 302) A matter of processing the incoming meaningful sounds into syntactical and then into larger units, so that the listener can make sense of the sounds. *Adapted from Ramsey and Sohi (1997, p.129) table. Listening theorists have posited that the listening is a multistage process involving sensing, evaluating, and responding (Drollinger, Comer, and Warrington 2006; Pence and Vickery 2012). In a sales context, this process is initiated with the salesperson sensing cues (verbal and nonverbal) communicated by customers (Castleberry and Shepherd 1993; Comer and Drollinger 1999). After sensing occurs, listening progresses into the evaluating stage which is highly cognitive (Castleberry and Shepherd 1993; Ramsey and Sohi 1997; Comer and Drollinger 1999). The evaluating stage is related to the energy the salesperson devotes to analyzing and organizing messages for understanding and recollection. At this stage, the effective listener offers reassurance that the message will be remembered through paraphrasing and head nods (Drollinger, Comer, and Warrington 2006; Pence and Vickery 2012). Once a salesperson has sensed and evaluated messages provided by the customer, listening moves to the responding stage, which can be seen as the end result of the other two stages (Comer and Drollinger

1999; Roman, Ruiz, Munuera 2005). This is also the stage that has the greatest impact

on outcomes of the listening process like adaptive selling, satisfaction, and performance (Ramsey and Sohi 1997; Boorom et al. 1998; Aggarwal et al. 2005). The importance of advancing listening theory and developing a framework surrounding listening process for salespeople was first posited by Castleberry and Shepherd (1993). Their conceptual paper suggests a framework incorporating motivations, the listening process, adaptive selling, and performance (Castleberry and Shepherd 1993). In sales, this has spurred scale development efforts to define l

Table 1-1

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