The Driver Inluencing the Relationship Between Sales Rep and Their Customer

8/8/2019 The Driver Inluencing the Relationship Between Sales Rep and Their Customer

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Dissertation Report

ON

The Driver influencing the relationship

between Sales Representative and Customer

and their impact on Sales

For the partial fulfillment of the course

InPost Graduate Diploma in Business Management.

(Session: 2007-2009)

Submitted By:-

Gopal Singh

Roll No-27119

Under The Guidance of

Ms. Sarika Tomar

NIILM- CENTRE FOR MANAGEMENT STUDIES

B-II/66, M.C.I.E., Sher Shah Suri Marg, New Delhi- 110044.

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ACKNOWLEDGEMENT

Success is not a destination, but a journey

The above saying is heard very often but I realized it even better during

my Dissertation research project. Any accomplishment requires the efforts of

many people and this work is no different. I have been fortunate enough to get the

help and guidance from many people. It is a pleasure to acknowledge them, though

it is still inadequate appreciation for their contribution.

I would not have completed this journey without the help, guidance and

support of certain people who acted as guides, friends and torchbearers along the

way.

I would like to express my deep gratitude and sincere thanks to my faculty

guide Ms. Sarika Tomar. for their keen support and valuable guidance. The

project could not be complete without their support and guidance. Thanking them

is only a small gesture for the generosity shown.

I am also thankful to all my friends, my family and the sales people and

distributor of various organization like; Coca-cola, Pepsi, Nestle, Reckitt

Benckiser, P&G, HUL, Camalin, Dabur, Mother Dairy, Amul, etc are the name of

few, who cooperated with me at every stage of the project and helped me a lot.

They acted as a continuous source of inspiration and motivated me throughout

the duration of the project helping me a lot in completing this project.

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PREFACE

P.G.D.B.M. is the stepping stone to management career. In order to achieve practical,

positive and concrete result, the classroom learning has to be effectively supplemented to

relation of the situation existing outside the classroom for developing healthy managerial and

administrative skills in a potential manager. It is necessary that the theoretical knowledge

must be supplemented with exposure to the real environment.

The report comprises all the important aspects of the study and all the aspects have been

presented under different headings in the forthcoming pages. An attempt had been made to

present a report covering different aspects of the Research Study.

I would like to express my sincere thanks to all the Respondent, Distributor and Sales people

who helped in my endeavors during the training.

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EXECUTIVE SUMMARY

Companies are continually trying to create value from their brands by increasing their

margins and/or selling more of their products. Taking cost out of the value chain gives the

company a competitive advantage, but this advantage is short lived as competitors also

reduce costs. (Mostly in FMCG companies) Differentiating a product through enhanced

features and benefits also provides a competitive advantage, but is also subject to imitation

by rivals. As competition increases, companies are looking for new avenues to differentiate

themselves. Relationship marketing has, as a result, increased its prevalence as a competitive

tool to provide that point of difference.

The primary objective of the study to investigated the factors that influence the relationships

between a sales representative and Distributor/Customer. The project was undertaken in Delhi

and NCR region due to various constraints.

A proper plan was devised as to how the market will be approached and the acceptability

level would be found out. For that, Sales people, Distributors, Customer responses were

collected through a simple questionnaire. All the findings of the project are mostly based on

primary data collection

This research Blue-print was developed after studying literature as it pertained to customer

relationship marketing. From the literature the foundation blocks in developing buyer-seller

relationships were studied. The research methodology tested the impact of certain factors on

the ability to build a relationship between buyer and seller and then tested the validity ofthose answers using underlying determinants of a relationship.

These determinants included the ability to communicate, the ability to trust, the degree of

loyalty and the ability to influence a customer.

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Table of contents

Project Completion Certificate2

Acknowledgment

3

Preface.4

Executive

Summary.5

CHAPTER 1: INTRODUCTION7

1.1: Purpose, Scope & Limitation...7

1.2: Benefits Gained through the project ...8

CHAPTER 2: RESEARCH PROJECT9

2.1: Literature Review ....9

2.2: Research Objective.....12

2.3: Research Problem...12

2.4. Research Design & Methodology..17

2.4: Questionnaire Designing....17

3.5: Sampling and Data Collection.......17

CHAPTER 4: DATA ANALYSIS AND RESULTS.18

4.1: Data Analysis..18

4.2: Research Result..18

CHAPTER 6: 48

6.1: BIBLIOGRAPHY48

6.2: ANNEXURE54

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CHAPTER 1: INTRODUCTION

1.1: Purpose, Scope & Limitations:

Purpose: This project is titled Study of preparatory educational segments for

exploring the Possibility of this segment as an avenue of growth for HT in Delhi.

This project is undertaken to find out the critical factor of success factor of a sales

representative to maintain a relationship with the customer. There are a number ofcompanies whose sales representative fail to maintain the relationship with their

customer. Hence a effort has been made to identify the critical success factor of a

representative which led to healthy relationship with their customer. I tried to know the

effect of sales representatives age, gender, educational qualification, language, place

of living in building the relationship with customer. So the companies can understand

the qualities of ultimate sales person and device them accordingly.

Scope: The whole project is divided into

Literature review and Hypothesis formation

Survey, Feedback and Data analysis

It is suggested that positive relationships have an impact on the sales representatives ability

to influence the store owner to activate certain in-store drivers which will increase the sales

volume of products through an outlet. In-store drivers have been defined as the availability of

a product through listing, the amount of forward share allocated to the product and the price

of the product. If the profile of a sales representative relative to that of a customer, has an

impact on the strength of the relationship, companies could match sales representatives to

customers based on their respective profiles. This matching would have a positive benefit

for the sales representative and his/her company.

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Understanding what factors can improve or inhibit a relationship provides important insights

into how management can influence a competitive advantage in customer relationship

marketing.

1.2:Limitation of the study:

The project is limited in scope due to restrictions over the length of questionnaire.

The definition of the population may be restricted due to resource constraints or the

availability of adequate sampling frames. Thus, the results can only be generalizedwith confidence to the group from whom the sample was taken.

1.2: Benefits gained through the project

Practical Experience: The most obvious benefit gained from conducting this project is

the practical experience, I acquired. I personally found that it was quite hard to

truly understand the concepts and ideas taught in the classroom until they arerequired to apply them in an actual situation. Such a fundamental concept as market

segmentation takes on a new meaning when I were required to carefully identify,

define, and measure the characteristics of some important customer group(s).

Satisfaction of Producing a Product: I found considerable satisfaction in doing

the marketing research project. This exercise involved me from start to finish in

solving a practical problem. At that point, it was quite hard for me to imagine

what the final product would be like. However, at the end of the term I was felling

very proud to be a part of this project.

Application of Skills: This project required to apply a variety of skills. Some of these

skills were entirely new, such as gathering information through direct and telephonic

interviews with management people of various preparatory coaching institutes. Other

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skills that I began to acquire in classes but had not applied to marketing

problems, for example, preparing statistical models in MS EXCEL.

2.1:LITERATURE REVIEW:

Defining a relationship, relationship marketing and customer relationship marketing.

A relationship is composed of a series of episodes between dyadic parties over time

Marketing in relational terms means to establish, maintain and enhance relationships with

customers and other partners, at a profit so that the objectives of parties involved are met.

This is achieved by mutual exchange. Relationship marketing (RM) is used to describe the

philosophy and orientation towards customer retention and is an important trend in

marketing. It is based on the organizations effort to develop long-term, mutual beneficial

links with customers. CRM philosophy is based on the concept of building long-term quality

relationships with customers who will provide value to the organization. The Relationship

marketing perspective is based on the notion that on top of value of products and/or services

that are exchanged, the existence of a relationship between two parties creates additional

value for the customer and also for the suppliers or service provider

Customer relationship marketing (CRM) is regarded as the practical implementation of

relationship marketing and is the core business strategy that integrates internal processes and

functions, and external networks, to create and deliver value to targeted customers at a profit.

It is grounded on high-quality customer data and enabled IT. The general aim of any CRMstrategy is to develop more profitable relationships with customers. Some organizations do

this by taking cost out of the relationship and others do this by increasing the revenue earned

from a customer relationship. It was found that customers value relationships with trusted

suppliers. As a result of the association of value with relationships it is important for

suppliers to put effort into maintaining and constantly improving these relationships.

Boles, Hiram, Barksdale and Johnson identified a five-stage relationship evolution process.

These stages are pre-relationship stage, early stage, development stage, long term stage and

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the final stage. Within these stages, there are certain identified categories of perceptions that

influence the future development of a relationship. Various researches identify one of these

categories as being the distance because of differences in social, geographic and cultural

backgrounds. In the early stage of development there is a need to reduce the social distance

between buyer and seller if a long-term sustainable relationship is to develop.

The sales person is the point of contact between the selling organization and the company. It

therefore becomes important to understand what factors will influence the strength of that

relationship and what the entry-level factors are that need to be considered prior to this stage.

The relationship gap between a buyer and a seller closes as knowledge of each firm becomes

known and as personal relationships develop between individuals.

There are different stages in building a relationship. These stages are represented in the

loyalty ladder depicted in Figure 1.

Figure 1: The customer ladder of loyaltySource: Adapted from Payne (2006:112)

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The ultimate goal is to reach the top of the ladder and develop a partner relationship, but

Payne (2006: 112) calls out the need to understand that it becomes more difficult to build a

relationship the higher one climbs up the ladder.

Key characteristics of relationships Satisfaction, trust and commitment are the core values in

relationship marketing. Satisfaction is a strong predictor for behavioral outcomes such as

repurchasing intentions, word-of-mouth or loyalty. Trust is one parties belief that its needs

will be fulfilled in the future by actions taken by the other party and according to the

commitment-trust theory by Morgan and Hunt. Trust is the key mediating variable that is

central to any relational exchange.

Commitment is defined by as an enduring desire to maintain a valued relationship and

committed relationship partners are unlikely to switch even if a competing supplier

outperforms the incumbents value offer. Parties identify commitment among exchange

partners as a key to achieving valuable outcomes for themselves and they endeavor to

develop and maintain this precious attribute in their relationship. Commitment is a

motivational force driving the individual towards an action or behavior and in marketing,

commitment to a relationship is widely accepted as a behavioral measure of performance.

Parties seek an on-going profitable relationship. This study examines the impact that age,

gender, education and culture have on the ability of a sales representative to build a

relationship with a customer. Culture is broken down into four categories and these

categories examined race, language, religion and area of residence of sales representative

relative to a customer and the impact these attributes have on the ability to build a

relationship.

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2.2The research objective:

The primary research objective was to determine if a positive relationship has an impact on

the in-store drivers and ultimately the sales volume in an outlet.

2.3The research problem:

A company can produce a product, create the demand for it, but fail by not having that

product available for the shopper to purchase. The focus of this article is to examine the

factors which influence the relationship between a sales representative and a customer, and

the impact of the relationship on the sales within an outlet. A supplier can determine who to

send to a customer. If a particular profile of sales representative increases the sales volume

within an outlet it would be in the interests of the supplier to ensure that the right person

with the most appropriate profile is sent to that customer.

The study was developed to solve the following four research problems:

The first related to whether there is a relationship between the profile of a sales

representative and that of the customer (linked to hypotheses 1 30).

The second to determine whether the strength of a relationship will influence the

ability to affect the in store drivers (linked to hypotheses 31-33).

The third to determine whether these in-store drivers affect sales volume (linked to

hypothesis 34-35).

The profile of a sales representative relative to the customer was defined by using the

determinants of gender age, education and culture.

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H8: The ability to communicate with customer is same irrespective of gender.

H9: There is a significant relationship between sales representatives educational

qualifications and their ability to communicate with a customer.

H10: The ability to communicate with customer is same irrespective of language.

H11: The ability to communicate with customer is same irrespective of place of living.

.

H12: The ability to communicate with customer is same irrespective of race.

(H13 H18)- To Test The Ability Of Trust A Customer

H13: There is a significant relationship between sales representative age and their ability to

trust a customer.

H14: The ability to trust a customer is same irrespective of gender.


qualifications and their ability to trust a customer.

H16: The ability to trust a customer is same irrespective of language.

H17: The ability to trust a customer is same irrespective of place of living.

.

H18: The ability to trust a customer is same irrespective of race.

(H19 H24)- To Test The Degree Of Loyalty And


build loyalty with a customer.

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H20: The ability to build loyalty with a customer is same irrespective of gender.


qualifications and their ability to build loyalty with a customer.

H22: The ability to build loyalty with a customer is same irrespective of language.

H23: The ability to build loyalty with a customer is same irrespective of place of living.

.

H24: The ability to build loyalty with a customer is same irrespective of race.

(H25 H30)- To Test The Ability To Influence A Customer


influence a customer.

H26: The ability to influence a customer is same irrespective of gender.


qualifications and their ability to influence a customer.

H28: The ability to influence a customer is same irrespective of language.

H29: The ability to influence a customer is same irrespective of place of living.

.

H30: The ability to influence a customer is same irrespective of race.

Hypotheses Linked To Research Problem Two:

Hypotheses 31 33 were formulated to test the relationship between the strength of a

relationship and the impact this relationship has on the in-store drivers. It was assumed that

there will be a positive relationship between the strength of the customer and sales

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representatives relationship and the ability of the sales representative to affect the listing of

products, the placement of cooling equipment and displays and the compliance to

recommended selling prices.

H31: The stronger the relationship a sales representative has with a customer the easier it is

to list a new product.

H32: The stronger the relationship that a sales representative has with a customer the easier it

is to get a display built in the outlet.

H33: The stronger the relationship that a sales representative has with a customer the easier it

is to get price compliance in an outlet.

Hypotheses Linked To Research Problem Three:

Hypotheses 34 35 were formulated to test the sales representatives belief that the strength

of the relationship that he or she has with the customer will influence his or her ability to list,

increase forward inventory and get price compliance within an outlet.

H34: If you increase the amount of forward share in an outlet by building displays and

increasing the points of interruption you will increase the volume in that outlet.

H35: If you get price compliance in an outlet you will increase the volume within that outlet.

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2.5: Research methodology:

Questionnaire design:

A questionnaire had been designed to gather information. The data variables in the

questionnaire were opinion based, except personal demographic question. Ordinal scale

questions were used to gather the opinion data. Nominal scales/category questions were used

to gather the respondents demographic data. A five point multi-item Likert scale was used

anchored 1= strongly agree (very easy, very high) and 5= Strongly disagree (very

difficult, very low) in the questionnaire. 1 shows strongly agree and on the other extreme 5

shows strong disagreement with the statement. Total 100 questionnaires were administered,

20 out of them were insufficient. Hence only 80 questionnaires were analyzed.

Sampling and data gathering:

The research was conducted within Delhi & NCR region. NCR includes Noida, Faridabad,

Ghaziabad, and Gorgon. The research involved the gathering of information from the sales

representatives, sales managers, Distributors and various companies representatives. Each

question in the questionnaire was explained to the respondent.

Convenience sampling method was used to get the response from targeted population is

survey. Most of the questionnaire was administered by me and rests Questionnaire were

administered by my colleague, due to time constraint. The whole data collection process took

less than one week.

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3.1: Data Analysis:

Statistical tool ANOVA is used for repeated ordinal measures. Chai-square test applied for

comparing several groups/categories.

All the data was transferred to an excel spreadsheet. The results from the survey were

matched to the volume growth. The data as it related to the strength of the relationship and

volume growth was transferred into two columns which were used in the correlation analysis.

The p-value was used to measure the significance of this correlation.

3.2: Research results:

Hypothesis results:

The following hypothesis results are linked to the ability of the sales representatives to build

relationships, their ability to communicate, their ability to build trust, their ability to build

loyalty and their ability to influence to influence the customer.

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The Ability To Build A Relationship (H1 H7):

Hypothesis 1: It is easier to build a relationship with a customer who is the same age or

younger than the sales representative.

SUMMARY

Groups Count Sum AverageVarian

ce

Column 1 80 117 1.46250.4289

56

Column 2 80 199 2.48750.5061

71

Column 3 80 128 1.60.3696

2

ANOVA

Source ofVariation SS df MS F P-value F crit

BetweenGroups

49.525 2 24.7625

56.93633

6.41888E-21

3.03392

Within Groups103.0

75 2370.434915

612

Total 152.6 239

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We reject null hypothesis and accept the alternate hypothesis at a 99% confidence level.

Here P value is almost equal to zero. Here we say that age play a vital role in building the

relationship with customer it is found that it is easier to build a relationship with a customer

who is the same age or younger than the sales representative. Its vary clear from the graph

itself.

Hypothesis 2: It is easier to build a relationship with customers of same gender.

SUMMARY

Groups Count SumAverag

eVarian

ce

Column 1 80 164 2.050.9341

77

Column 2 80 292 3.650.8379

75

ANOVA


BetweenGroups 102.4 1 102.4

115.5657

1.41724E-20

3.900989

Within Groups 140 1580.8860

76

Total 242.4 159

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It is found that the representative can build a good relationship with the same gender. As it

was found that the average rating given to the same gender is 2.05 and to the opposite gender

is 3.65. Hence it shows that it is easier for a sales person to maintain the relationship with a

customer of same gender.

Hypothesis 3: It is easier to build a relationship with a customer who has a similar or less

educated to that of the sales representative.

SUMMARY


eVarian

ce

Column 1 80 113 1.41250.5238

92

Column 2 80 228 2.850.6101

27

Column 3 80 147 1.83750.7454

11

ANOVA


BetweenGroups

87.25833 2

43.62917

69.64211

1.6182E-24

3.03392

Within Groups148.47

5 2370.6264

77

Total235.73

33 239

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It is clear from the bar-graph that it is easier for a sales representative to maintain a

relationship with a customer who is similar or less educated.

Hypothesis 4: It is easier for a sales representative to build a relationship with a customer

who has the same home language.

SUMMARY


eVarian

ce

Column 1 80 100 1.250.2151

9

Column 2 80 228 2.850.6860

76

ANOVA



227.236

2.16857E-32

3.900989

Within Groups 71.2 1580.4506

33

Total 173.6 159

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who lives in a similar area.

SUMMARY


eVarian

ce

Column 1 80 178 2.2250.9867

09

Column 2 80 269 3.36250.9681

96

ANOVA

Source ofVariation SS df MS F

P-value F crit

BetweenGroups

51.75625 1

51.75625

52.95014

1.51E-11

3.900989

WithinGroups

154.4375 158

0.977453

Total206.19

38 159


who has the same race.

SUMMARY


eVarian

ce

Column 1 80 178 2.2250.9867

09

Column 2 80 269 3.3625

0.9681

96

ANOVA


P-value F crit

BetweenGroups

51.75625 1

51.75625

52.95014

1.51E-11

3.900989

WithinGroups

154.4375 158

0.977453

Total 206.19 159

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38

Ability To Communicate With A Customer (H7 H12):

Hypothesis 7: It is easier for a sales representative to communicate with a customer of a

similar age or younger than him/her.

SUMMARY


eVarian

ce

Column 1 80 137 1.71250.5618

67

Column 2 80 245 3.06250.6162

97

Column 3 80 138 1.7250.4803

8

ANOVA


BetweenGroups

96.30833 2

48.15417

87.10198

4.3842E-29

3.03392

Within Groups131.02

5 2370.5528

48

Total227.33

33 239

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Hypothesis 8: The ability of a sales representative to communicate with customers is the

same irrespective of gender is rejected.

SUMMARY


eVarian

ce

Column 1 80 141 1.76250.4871

84

Column 2 80 176 2.20.4911

39

ANOVA


BetweenGroups

7.65625 1

7.65625

15.65179

0.000114727

3.900989

Within Groups77.287

5 1580.4891

61

Total84.943

75 159

It is evident from the data that sales representative feel more comfortable to the same gender.

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Hypothesis 9: It is easier for a sales representative to communicate with a customer of

similar or less educated.

SUMMARY


eVarian

ce

Column 1 80 162 2.0250.4803

8

Column 2 80 163 2.03750.4162

97

Column 3 80 162 2.0250.3791

14

ANOVA


BetweenGroups

0.008333 2

0.004167

0.009798

0.990250402

3.03392

Within Groups100.78

75 2370.4252

64

Total100.79

58 239

Hypothesis 10: It is easier for a sales representative to communicate with a customer whose

home language is similar to the sales representatives home language.

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SUMMARY


eVarian

ce

Column 1 80 110 1.3750.3132

91

Column 2 80 214 2.6750.6272

15

ANOVA

Source ofVariation SS Df MS F P-value F crit

Between

Groups 67.6 1 67.6

143.75

24

5.77451

E-24

3.9009

89


53

Total 141.9 159

Hypothesis 11: It is easier for a sales representative to communicate with a customer who

lives in the same area.

SUMMARY


eVarian

ce

Column 1 80 156 1.950.5544

3

Column 2 80 230 2.8750.6677

22

ANOVA

Source ofVariation SS Df MS F P-value F crit

BetweenGroups

34.225 1 34.225

56.00777

4.7385E-12

3.900989


76

Total130.7

75 159

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Hypothesis 12: It is easier for a sales representative to communicate with a customer who

has the same race that of sales representative.

SUMMARY

Groups Count Sum

Averag

e

Varian

ce

Column 1 80 147 1.83750.5428

8

Column 2 80 236 2.950.6556

96

ANOVA


BetweenGroups

49.50625 1

49.50625

82.60845

3.97532E-16

3.900989

Within Groups94.687

5 1580.5992

88

Total144.19

38 159

The Ability Of Trust A Customer (H13 H18):

Hypothesis 13: A sales representative has a higher degree of trust with the customer who is

in similar age or a younger customer.

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SUMMARY


eVarian

ce

Column 1 80 163 2.03750.5681

96

Column 2 80 218 2.7250.4550

63

ANOVA


BetweenGroups

18.90625 1

18.90625

36.95299

8.74152E-09

3.900989

Within Groups

80.837

5 158

0.5116

3

Total99.743

75 159

Hypothesis 15: The level of education of a customer relative to that of a sales representative

has a positive impact on the degree of trust between a sales representative and a customer. It

is easier for a sales representative to trust a customer of similar age to him/her.

SUMMARY

Groups Count Sum AverageVarian

ce

Column 1 80 119 1.48750.2530

06

Column 2 80 218 2.725

0.5310

13

Column 3 80 158 1.9750.3791

14

ANOVA


P-value F crit


80.18215

2.53E-27

3.03392

Within Groups91.887

5 2370.387710

97

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Total154.06

25 239

Hypothesis 16: It is easier to a sales representative to build trust with a customer whose

home language is similar to the sales representatives home language.

SUMMARY


eVarian

ce

Column 1 80 198 2.475 0.353797

Column 2 80 180 2.250.3924

05

ANOVA



5.427481

0.02108771

3.900989


01

Total60.97

5 159

Hypothesis 17: The area of residence of a sales representative relative to a customer has no

impact on the degree of trust.

SUMMARY

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eVarian

ce

Column 1 80 229 2.86250.5251

58

Column 2 80 229 2.8625

0.3732

59

ANOVA


P-value F crit

BetweenGroups

5.68E-14 1

5.68E-14

1.27E-13 1

3.900989

Within Groups70.97

5 1580.4492

09

Total70.97

5 159

Hypothesis 18: A sales representative has a higher degree of trust with a customer that has

the same race.

SUMMARY


eVarian

ce

Column 1 80 143 1.78750.4226

27

Column 2 80 238 2.9750.2778

48

ANOVA


P-value F crit

BetweenGroups

56.40625 1

56.40625

161.0515

6.87E-26

3.900989

Within Groups55.337

5 1580.3502

37

Total111.74

38 159

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Ability To Build Loyalty (H19 H24):

Hypothesis 19: A sales representatives gets a higher degree of loyalty from a customer that

is similar in age or younger than the sales representative.

SUMMARY

Groups Count Sum

Averag

e

Varian

ce

Column 1 80 149 1.86250.2973

1

Column 2 80 223 2.78750.4479

43

Column 3 80 150 1.8750.4651

9

ANOVA


P-value F crit

BetweenGroups

45.025 2

22.5125

55.79569

1.39E-20

3.03392

Within Groups95.62

5 2370.4034

81

Total140.6

5 239

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Hypothesis 20: A sales representative gets a higher degree of loyalty from a customer who

is of the same gender.

SUMMARY


eVarian

ce

Column 1 80 248 3.1

0.2683

54

Column 2 80 168 2.10.3443

04

ANOVA


BetweenGroups 40 1 40

130.5785

2.01349E-22

3.900989

Within Groups 48.4 158 0.306329

Total 88.4 159

Hypothesis 21: A sales representative gets a higher degree of loyalty from a customer of a

similar level of education.

SUMMARY

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eVarian

ce

Column 1 80 130 1.6250.2626

58

Column 2 80 220 2.75

0.4177

22

Column 3 80 200 2.50.3037

97

ANOVA


BetweenGroups

55.83333 2

27.91667

85.09646

1.40072E-28

3.03392


59

Total133.58

33 239

Hypothesis 22: A sales representative receive higher degree of loyalty from a customer who

speak the same home language same to representative.

SUMMARY


eVarian

ce

Column 1 80 119 1.48750.2530

06

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Column 2 80 249 3.11250.1770

57

ANOVA


BetweenGroups

105.625 1

105.625

491.2068

2.38377E-50

3.900989

Within Groups33.97

5 1580.2150

32

Total 139.6 159

Hypothesis 23: A sales representative gets a higher degree of loyalty from a customer who

lives in the same area.

SUMMARY

Groups CountSum

Average

Variance

Column 1 80

16

7 2.0875

0.7390

82

Column 2 80247 3.0875

0.359335

ANOVA


P-value F crit

BetweenGroups 40 1 40

72.83204

1.1E-14

3.900989

WithinGroups 86.775 158 0.549209

Total126.7

75159

Hypothesis 24: A sales representative gets a higher degree of loyalty from a customer with

the same race.

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SUMMARY

Groups CountSum

Average

Variance

Column 1 80151 1.8875

0.22769

Column 2 80266 3.325

0.374051

ANOVA


P-value F crit

BetweenGroups

82.65625 1

82.65625

274.7239

2.15E-36

3.900989

Within

Groups

47.537

5

15

8

0.3008

7

Total130.19

38159

The Ability to Influence A Customer (H25 H30):

Hypothesis 25: A sales representative finds it easier to influence a customer of same age or

younger than him/her.

SUMMARY

Groups CountSum

Average

Variance

Column 1 80137 1.7125

0.334019

Column 2 80

25

5 3.1875

0.2555

38Column 3 80 16 2.05 0.4531

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4 65

ANOVA

Source ofVariation SS df MS F P-value F critBetweenGroups

95.55833 2

47.77917

137.4648

2.32E-40

3.03392

WithinGroups 82.375

237

0.347574

Total177.93

33239

Hypothesis 26: A sales representatives ability to influence a customer is the same for both

genders hypothesis is rejected in the evidence of p value which is near to zero. Data shows

that it is easier for a sales representative to influence a customer of same gender.

SUMMARY


eVarian

ce

Column 1 80 135 1.68750.3188

29

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Hypothesis28: A sales representatives ability to influence a customer who speaks same

home language is higher than the customer whos home language is other than sales

representatives home language.

SUMMARY


eVarian

ce

Column 1 80 117 1.46250.3023

73

Column 2 80 258 3.2250.4297

47

ANOVA


P-value F crit

Between

Groups

124.25

63 1

124.25

63

339.44

22

3.43E

-41

3.9009

89WithinGroups

57.8375 158

0.36606

Total182.09

38 159

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Hypothesis 29: It is easier for a sales representative to influence a customer who lives in a

similar area to that of the sales representative.

SUMMARY


eVarian

ce

Column 1 80 186 2.3250.3993

67

Column 2 80 267 3.33750.4289

56

ANOVA


P-value F crit

BetweenGroups

41.00625 1

41.00625

99.01032

2.05E-18

3.900989

WithinGroups

65.4375 158

0.414161

Total

106.44

38 159

Hypothesis 30: A sales representative finds it easier to influence a customer who has the

same religion.

SUMMARY

Groups Count SumAvera

geVarian

ce

Column 1 80 1431.787

50.4226

27

Column 2 80 2513.137

50.2719

94

ANOVA


P-value F crit


209.8989

8.38E-31

3.900989

Within

Groups

54.87

5 158

0.347

31

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Total127.7

75 159

Table 1 below depicts the profile of the ultimate sales representative based on the research

results above.

Table 1: The Ultimate Sales Representative:

Variable QualitiesAge Same age or older

Gender Either Male or Female

Education Similar or Higher to Customer

Language Similar to Customer

Area of residence Near to Customer

Race Similar to Customer

The variables and qualities depicted in Table 1 provide the necessary context for the

interpretation of the results based on the strength of relationships to follow.

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Relationship Ability To Influence In-Store Drivers :

The next section of the study was related to the impact of the customer relations on the in-

store drivers linked to research problem two. Table 2 provides a summary of the hypotheses

results as they relate to the impact on relationships.

The individual results on H31 H35 and the interpretation thereof are discussed below:

Hypothesis 31: The sales representative believes that there is a positive relationship between

the strength of the relationship he/she has with a customer and the ability to list a product in

an outlet.

It was observed that 75 percent of respondents strongly agree with the above hypothesis. Themean responses differ with overwhelming evidence. The test has a high degree of

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significance with a p-value of 0,0000. Based on this evidence the null hypothesis was

rejected in favour of the alternative hypothesis. It can therefore be concluded that the stronger

the relationship between a sales representative and a customer the easier it is for the sales

representative to list a new product.


the strength of the relationship he/she has with a customer and the ability to get a display

built in the outlet.

It is observed that 70 percent of respondents strongly agree with the above hypothesis. The

mean responses differ with overwhelming evidence. The test has a high degree of

significance with a Chi square of 23,096 and a p-value of 0,0000. Based on this evidence the

null hypothesis is rejected in favour of the alternative hypothesis. It can therefore be

concluded that the stronger the

relationship between a customer and a sales representative the easier it is to get a display built

in the outlet.

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the strength of the relationship he/she has with a customer and the ability to influence the

price that products are sold for in an outlet.

It is observed that 39 percent of respondents strongly agree and 31 percent agree with the

above hypothesis. The mean responses differ with overwhelming evidence. The test has a

high degree of significance with a p-value of 0,0000. Based on this evidence the null

hypothesis is rejected in favour of the alternative hypothesis. It can therefore be concluded

that the stronger the relationship between a customer and a sales representative the easier it is

to get price compliance in an outlet. The ability to influence price is not as strong as that of

listing or building a display in an outlet. The correlation between in-store drivers and sales

volume The next section of the study was related to the correlation between in-store drivers

and sales volume linked to research problem three.

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Hypothesis 34: If a sales representative increases the amount of forward share in an outlet

there will be an increase in sales volume within that outlet.



significance with a p-value of 0,0000. Based on this evidence the null hypothesis is rejected

in favour of the alternative hypothesis.

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Hypothesis 35: If the sales representative gets price compliance in an outlet there will be an

increase in sales volume within that outlet.



significance with a Chi square of 87,216 and a p-value of0,0000. Based on this evidence the

null hypothesis is rejected in favour of the alternative hypothesis.

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Table 2: Impact of relationship

HypothesisFrequency on

a five Point

likert scale

P-

Value

Hypothesis

Result

H36: The stronger your relationship with your

customer the easier it is to convince him or her to

list a new product

76% 0,000 Reject

H37: The stronger the relationship with your

customer the easier it is to get a display built in

the outlet

70% 0,000 Reject

H38: The stronger the relationship with your

customer the easier it is to get price compliance

in an outlet

38% 0,000 Reject

H39:If you increase the amount of forward share

in an outlet by building displays and increasing

the points of interruption you will increase the

volume in that outlet

62% 0,000 Reject

H40: If you get price compliance in an outlet you

will increase the volume within that outlet

61% 0,000 Reject

*Note: 1 = strongly agree and 5 = strongly disagree.

**Note: H0: The percentage contribution of answers across the five point Likert scale will all

be the same i.e.p1=p2=p3=p4=p5=0.2 (20%).

It can therefore be concluded that there is a positive relationship between the amount of

forward share in an outlet and the sales volume within that outlet.

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4.1: Managerial implications and recommendation:

Most of the companies device their sales force with any consideration of all these factor

which have been discussed in the research study. Since it is found that there is a positive

correlation between a sales person profile and his/her ability to build relationship with

customer/distributor. And the ultimate result of this relationship come out in the form of

sales.

There has been a natural alignment of profile between customers and sales representatives.

The current strength of the relationship between a sales representative and a customer (outlet)

can be regarded as strong, but the following recommendations should be considered:

African customer whose home language is Punjabi/Tamil/English should be

served by sales representatives who also have the similar home language.

Customers should be matched on the basis of age to sales representatives. A

similar age is preferable. Or the age of sales representative should be little older

than his/her customer.

Better education is an advantage from a sales perspective. It was pointed out that

it is easier to

Influence a customer with same or a lower level of education. Training and a

higher level of intelligence relative to the customer can give the company a

sustainable competitive advantage.

Assigning sales routes which are similar to those where the sales representative

live is an advantage.

A data base capturing the profile of customers relative to sales representatives needs to be

established. While it is not logistically possible to match everyone, an understanding of the

current situation is important. Targets as to what should be achieved or maintained need to be

established if the organization is to become relationship focused. Establishing a current

reality picture and a destination are crucial management steps which need to be considered.

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5.1: Conclusion:

There is significant evidence that the profile of a sales representative does have an impact on

his or her ability to build a relationship with a customer and that from a sales representatives

perspective there is a link between the relationship and the ability to impact the in-store

drivers.

It is easier for a sales representative to build a relationship with a customer who is a similar

age. It is however easier for the sales representative to influence a younger customer or thecustomer who is similar in age to him/her. With respect to education, a stronger relationship

exists between a customer and sales representative of a similar education. Again it is easier

for a representative to influence a customer who has a lower or similar level of education.

Race does have an impact on the ability to build relationships. The research showed that a

Punjabi sales representative should service a Punjabi customer. There was a positive link

between matching sales representatives and customers who come from similar areas and have

the same religion.

Further to this, the sales representatives believe that manipulating the in store drivers will

have a positive impact on the sales volume within an outlet. The growth in volume over one

year it was found during the discussion with industry specialist. As competition increases

relationships will play more of a critical role in selling. It is important to understand the link

and develop a process which will give the organization a competitive advantage for the

future.

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Research Assignment Questionnaire:

Questionnaire No..

Date Completed.

As part of my Final year dissertation at NIILM-CMS, I am doing a research project on The

Driver influencing the relationship between Sales Representative and Customer and

their impact on Sales. As part of this project I will be evaluating the impact of gender,

culture and educations have on the ability of a sales representative to develop a relationship

with customer. The research project will examine the strength of the relationship and the

impact on sales.

Below is a list of question which you are requested to answer. It is important to answer

question from your personal point of view. There is no right answer or wrong answer. Put a

tick which you feel is most relevant. Your answers will be kept confidential and used only for

academic purpose.

Thank you for being part of the survey.

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Gopal Singh

PGDBM (NIILM-CMS)

Contact NO-9871586038

1. ABILITY TO BUILD A RELATIONSHIP:

1.1 A customer who is similar age toyou..

1.2 A customer who is older than

you.

1.3 A customer who is younger than

you.

1.4 A customer who is same gender as

you.

1.5 A customer who is opposite gender to

you.

1.6 A customer who has similar level of

education to you

1.7 A customer who has higher level of

education to you

1.8 A customer who has lower level of

education to you.

1.9 A customer who has similar home language

to you.

1.10 A customer who has home language other to you.

1.11 A customer who lives in similar area to

you

1.12 A customer who lives different type of

area to you.

1.13 A customer who has same race to

you.

1.14 A customer who has other race toyou.

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1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

Ver easVery Difficult

Neither easy

Nor Difficult


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2. ABILITY TO COMMUNICATE WITH A CUSTOMER:

2.1 A customer who is similar age to you..


you.


you.


you.


you.


education to you


education to you


education to you.


to you.

2.10 A customer who has home language

other to you.


you


area to you.

2.13 A customer who has same religion to

you

2.14 A customer who has other religion to

you

.

[53]

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

Ver eas

Neither easy

Nor DifficultVery Difficult


54/59


55/59

4. DEGREE OF LOYALTY:



you.


you.


you.


you.


education to you


education to you


education to you.


to you.



you


area to you.

4.13 A customer who has same race to

you.

4.14 A customer who has other race to

you.

[55]

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

Very loyal Not loyal at all


56/59

5. ABILITY TO INFLUENCE A CUSTOMER:



you.


you.


you.


you.


education to you


education to you


education to you.


to you.



you


area to you.

5.13 A customer who has same race toyou..

5.14 A customer who has other race to

you

6. THE IMPACT OF RELATIONSHIP:

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1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

Very difficultVery easy Neither Easy

Nor Difficult

Strongly Agree Strongly Disagree

Neither Agree

Nor Disagree


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6.1 The stronger the your relationship with your customer

the

Easier it to convenience him/her to list a new product

6.2 The stronger the relationship with your customer the

Easier it get a display built in the outlet

6.3 The stronger the relationship with your customer the

Easier is it get price compliance in an outlet

6.4 If you increase the amount of forward share in an outlet by

Building display and increasing the point of interruption

will increase the volume in that outlet

6.5 If you get price compliance in an outlet you will

increase

the Volume within that outlet

7. PERSONAL INFORMATION:

7.1Your Name.

7.2Your Ag20-24..25-29....30-34..

.35-39..>40

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1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5


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7.3Gender.Male....Female

7.4 Educational qualification

..High school..Intermediate.Graduate..Post Grad

7.4Religion..

7.5How long have you been on your current sales route (yrs).

...0-1..1-2..2-5...>5.

References:

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Bhagat, P.S. & Williams, J.D. 2008. Understanding gender differences in professional

service relationships, Journal of Consumer Behaviour, 25(1):16 22. Boles, J., Hiram, C.,

Barksdale, J.R. & Johnson, J. 1997.

Business relationships: an examination of the effects of buyer-salesperson relationships and

willingness to refer and recommend, Journal of Business & Industrial Marketing,

Buttle, F. 2005. Customer relationship management concepts and tools. Oxford, Butterworth

Heinemann.

Ford, D. 1982. The development of buyer-seller relationships in industrial markets. In

Hakansson, H. (Ed.). International marketing and purchasing of industrial goods.

Chichester: John Wiley & Sons.

Little, E. & Marandi, E. 2003. Relationship marketing management. London, Thomson.

Moorman, C., Zaltman, G. & Deshpande, R. 1992. Relationships between providers and

users of market research: The dynamics of trust within and between organizations, Journal

of Marketing Research, 29(3): 314- 328.

Morgan, R.M. & Hunt, S.D. 1994. The commitment-trust theory of relationship marketing,

Journal of Marketing, 58 (3):20 38.

Payne, A. 2006. Handbook of CRM Achieving excellence in customer management.

Burlington: Butterworth- Heinemann.

Ulaga, W. & Eggert, A. 2006. Relationship value and relationship quality Broadening the

nomological network of business-to-business relationships, European Journal of Marketing

The Driver Inluencing the Relationship Between Sales Rep and Their Customer

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