IDEAS home Printed from https://ideas.repec.org/a/spr/joamsc/v49y2021i3d10.1007_s11747-020-00763-x.html
   My bibliography  Save this article

No conversion, no conversation: consequences of retail salespeople disengaging from unpromising prospects

Author

Listed:
  • William L. Cron

    (University of Bochum)

  • Sascha Alavi

    (University of Bochum)

  • Johannes Habel

    (University of Houston
    University of Warwick)

  • Jan Wieseke

    (University of Bochum
    Loughborough University)

  • Hanaa Ryari

    (University of Bochum)

Abstract

On encountering a prospect whom they believe unlikely to make a purchase, some retail salespeople adopt a sales strategy of limiting engagement with the customer, relying on a “no conversion, no conversation” (NC2) sales strategy. Is this a good or bad sales strategy? Based on a multisource dataset combining salespeople and objective sales performance data, the authors examine retail salespeople’s performance consequences of disengaging from a customer, i.e., of the NC2 sales strategy. Higher sales performance and sales growth arises from the use of an NC2 sales strategy when (1) salespeople are experienced professionals skilled in gauging customers’ purchase likelihood, (2) store traffic is high, and (3) salespeople are oriented to building lasting customer relationships. However, (4) when store traffic is low and peers use the NC2 sales strategy as well, this customer disengagement strategy yields lower returns for salespeople.

Suggested Citation

  • William L. Cron & Sascha Alavi & Johannes Habel & Jan Wieseke & Hanaa Ryari, 2021. "No conversion, no conversation: consequences of retail salespeople disengaging from unpromising prospects," Journal of the Academy of Marketing Science, Springer, vol. 49(3), pages 502-520, May.
  • Handle: RePEc:spr:joamsc:v:49:y:2021:i:3:d:10.1007_s11747-020-00763-x
    DOI: 10.1007/s11747-020-00763-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11747-020-00763-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11747-020-00763-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hui Feng & Neil A. Morgan & Lopo L. Rego, 2017. "Firm capabilities and growth: the moderating role of market conditions," Journal of the Academy of Marketing Science, Springer, vol. 45(1), pages 76-92, January.
    2. Rapp, Adam & Baker, Thomas L. & Bachrach, Daniel G. & Ogilvie, Jessica & Beitelspacher, Lauren Skinner, 2015. "Perceived customer showrooming behavior and the effect on retail salesperson self-efficacy and performance," Journal of Retailing, Elsevier, vol. 91(2), pages 358-369.
    3. Olga Perdikaki & Saravanan Kesavan & Jayashankar M. Swaminathan, 2012. "Effect of Traffic on Sales and Conversion Rates of Retail Stores," Manufacturing & Service Operations Management, INFORMS, vol. 14(1), pages 145-162, January.
    4. James J. Zboja & Ronald A. Clark & Diana L. Haytko, 2016. "An offer you can’t refuse: consumer perceptions of sales pressure," Journal of the Academy of Marketing Science, Springer, vol. 44(6), pages 806-821, November.
    5. Kadic-Maglajlic, Selma & Micevski, Milena & Arslanagic-Kalajdzic, Maja & Lee, Nick, 2017. "Customer and selling orientations of retail salespeople and the sales manager's ability-to-perceive-emotions: A multi-level approach," Journal of Business Research, Elsevier, vol. 80(C), pages 53-62.
    6. Habel, Johannes & Alavi, Sascha & Pick, Doreén, 2017. "When serving customers includes correcting them: Understanding the ambivalent effects of enforcing service rules," International Journal of Research in Marketing, Elsevier, vol. 34(4), pages 919-941.
    7. Gensler, Sonja & Neslin, Scott A. & Verhoef, Peter C., 2017. "The Showrooming Phenomenon: It's More than Just About Price," Journal of Interactive Marketing, Elsevier, vol. 38(C), pages 29-43.
    8. David V. Day & Robert G. Lord, 1992. "Expertise And Problem Categorization: The Role Of Expert Processing In Organizational Sense‐Making," Journal of Management Studies, Wiley Blackwell, vol. 29(1), pages 35-47, January.
    9. Sungho Park & Sachin Gupta, 2012. "Handling Endogenous Regressors by Joint Estimation Using Copulas," Marketing Science, INFORMS, vol. 31(4), pages 567-586, July.
    10. Dane, Erik & Rockmann, Kevin W. & Pratt, Michael G., 2012. "When should I trust my gut? Linking domain expertise to intuitive decision-making effectiveness," Organizational Behavior and Human Decision Processes, Elsevier, vol. 119(2), pages 187-194.
    11. James J. Zboja & Ronald A. Clark & Diana L. Haytko, 2016. "Erratum to: An offer you can’t refuse: consumer perceptions of sales pressure," Journal of the Academy of Marketing Science, Springer, vol. 44(6), pages 822-823, November.
    12. Shun Yin Lam & Mark Vandenbosch & John Hulland & Michael Pearce, 2001. "Evaluating Promotions in Shopping Environments: Decomposing Sales Response into Attraction, Conversion, and Spending Effects," Marketing Science, INFORMS, vol. 20(2), pages 194-215, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Park, Hyewon & Hur, Won-Moo, 2023. "Customer showrooming behavior, customer orientation, and emotional labor: Sales control as a moderator," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    2. Fred Miao & Yi Zheng & Zhimei Zang & Douglas B. Grisaffe & Kenneth Evans, 2022. "Managing differential effects of salespersons’ regulatory foci–a dual process model of dominant and supplemental pathways," Journal of the Academy of Marketing Science, Springer, vol. 50(3), pages 563-585, May.
    3. Errajaa, Karim & Hombourger-Barès, Sabrina & Audrain-Pontevia, Anne-Françoise, 2022. "Effects of the in-store crowd and employee perceptions on intentions to revisit and word-of-mouth via transactional satisfaction: A SOR approach," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    4. Krämer, Martin & Desernot, Christina & Alavi, Sascha & Schmitz, Christian & Brüggemann, Felix & Wieseke, Jan, 2022. "The role of salespeople in industrial servitization: How to manage diminishing profit returns from salespeople’s increasing industrial service shares," International Journal of Research in Marketing, Elsevier, vol. 39(4), pages 1235-1252.
    5. Johannes Habel & Sascha Alavi & Nicolas Heinitz, 2023. "A theory of predictive sales analytics adoption," AMS Review, Springer;Academy of Marketing Science, vol. 13(1), pages 34-54, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Feng, Cong & Fay, Scott, 2022. "An empirical investigation of forward-looking retailer performance using parking lot traffic data derived from satellite imagery," Journal of Retailing, Elsevier, vol. 98(4), pages 633-646.
    2. Fiestas, Jorge Carlos & Tuzovic, Sven, 2021. "Mobile-assisted showroomers: Understanding their purchase journey and personalities," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    3. Wang, Siqi & Cheah, Jun-Hwa & Lim, Xin-Jean & Leong, Yee Choy & Choo, Wei Chong, 2022. "Thanks COVID-19, I'll reconsider my purchase: Can fear appeal reduce online shopping cart abandonment?," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    4. Saeed Janani & Ranjit M. Christopher & Atanas Nik Nikolov & Michael A. Wiles, 2022. "Marketing experience of CEOs and corporate social performance," Journal of the Academy of Marketing Science, Springer, vol. 50(3), pages 460-481, May.
    5. Viejo-Fernández, Nuria & Sanzo-Pérez, María José & Vázquez-Casielles, Rodolfo, 2020. "Is showrooming really so terrible? start understanding showroomers," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    6. Zhang, Yufei & Voorhees, Clay M. & Lin, Chen & Chiang, Jeongwen & Hult, G.Tomas M. & Calantone, Roger J., 2022. "Information Search and Product Returns Across Mobile and Traditional Online Channels," Journal of Retailing, Elsevier, vol. 98(2), pages 260-276.
    7. Herhausen, Dennis & Kleinlercher, Kristina & Verhoef, Peter C. & Emrich, Oliver & Rudolph, Thomas, 2019. "Loyalty Formation for Different Customer Journey Segments," Journal of Retailing, Elsevier, vol. 95(3), pages 9-29.
    8. Verhoef, Peter C. & Stephen, Andrew T. & Kannan, P.K. & Luo, Xueming & Abhishek, Vibhanshu & Andrews, Michelle & Bart, Yakov & Datta, Hannes & Fong, Nathan & Hoffman, Donna L. & Hu, Mandy Mantian & No, 2017. "Consumer Connectivity in a Complex, Technology-enabled, and Mobile-oriented World with Smart Products," Journal of Interactive Marketing, Elsevier, vol. 40(C), pages 1-8.
    9. Flavián, Carlos & Gurrea, Raquel & Orús, Carlos, 2020. "Combining channels to make smart purchases: The role of webrooming and showrooming," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    10. Epstein, Leonardo D. & Inostroza-Quezada, Ignacio E. & Goodstein, Ronald C. & Choi, S. Chan, 2021. "Dynamic effects of store promotions on purchase conversion: Expanding technology applications with innovative analytics," Journal of Business Research, Elsevier, vol. 128(C), pages 279-289.
    11. Graham, Charles & Khan, Kamran & Ilyas, Muhammad, 2019. "Estimating the value of passing trade from pedestrian density," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 103-111.
    12. Wang, Wei & Li, Gang & Fung, Richard Y.K. & Cheng, T.C.E., 2019. "Mobile Advertising and Traffic Conversion: The Effects of Front Traffic and Spatial Competition," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 84-101.
    13. Aw, Eugene Cheng-Xi, 2020. "Understanding consumers’ paths to webrooming: A complexity approach," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    14. Subrata Mitra, 2022. "Economic models of price competition between traditional and online retailing under showrooming," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 49(1), pages 29-63, March.
    15. Luis-Edwin Chimborazo-Azogue & Marta Frasquet & Alejandro Molla-Descals & Maria-Jose Miquel-Romero, 2021. "Understanding Mobile Showrooming Based on a Technology Acceptance and Use Model," Sustainability, MDPI, vol. 13(13), pages 1-17, June.
    16. Schneider, Patricia J. & Zielke, Stephan, 2021. "Price versus service: Can retailers beat showrooming with competence?," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    17. Barwitz, Niklas, 2020. "The relevance of interaction choice: Customer preferences and willingness to pay," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    18. Chapados, Nicolas & Joliveau, Marc & L’Ecuyer, Pierre & Rousseau, Louis-Martin, 2014. "Retail store scheduling for profit," European Journal of Operational Research, Elsevier, vol. 239(3), pages 609-624.
    19. Konur, Dinçer, 2021. "Keep your enemy close? Competitive online brands’ expansion with individual and shared showrooms," Omega, Elsevier, vol. 99(C).
    20. Wang, Chong & Wang, Yanqing & Wang, Jixiao & Xiao, Jiuling & Liu, Jian, 2021. "Factors influencing consumers' purchase decision-making in O2O business model: Evidence from consumers' overall evaluation," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joamsc:v:49:y:2021:i:3:d:10.1007_s11747-020-00763-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.