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Personal Selling in Retail Settings How Does The Internet and Related
Personal Selling in Retail Settings How Does The Internet and Related
To cite this article: Dhruv Grewal , Michael Levy & Greg W. Marshall (2002) Personal Selling in
Retail Settings: How Does the Internet and Related Technologies Enable and Limit Successful
Selling?, Journal of Marketing Management, 18:3-4, 301-316, DOI: 10.1362/0267257022872433
Download by: [University of Newcastle, Australia] Date: 05 November 2017, At: 01:58
Journal of Marketing Management, 2002, 18, 301-316
Introduction
In less than a decade, the Internet has had a significant impact on the way
most of us live. Consumers shop, do research, chat with friends and
colleagues, and sometimes just wander somewhat aimlessly. In the B-to-B
world, the Internet has also shaped the way many businesses communicate
with each other. The use of EDI (electronic data interchange) and e-mail has
been elevated to new levels in conducting the daily activities of commerce.
For instance, manufacturers and retailers collaborate with their vendors
across the gamut of supply chain issues from procurement and design to
payment and returns. Overall, IBM recently estimated that the average
annual growth rate of e-commerce from 1995-1999 was +175 percent per
year, with doubling time now less than six months (www.ibm.com/iac).
All authors contributed to this article and the order of authorship is listed
alphabetically.
ISSN1472-1376/2002/03-400301+15 £4.00/0 ©Westburn Publishers Ltd.
302 Dhruv Grewal, Michael Levy and Greg W. Marshall
One area on which the impact of the Internet and related technologies is
expected to be profound is on the personal selling process (Marshall,
Moncrief, and Lassk 1999). In the early 1990s, pundits predicted the end of
automobile dealerships, real estate agents, insurance salespeople, and
stockbrokers. Although Internet technology may often facilitate automobile,
real estate, or insurance sales, the personal selling process is still strong in
those sectors. The Internet has, however, revolutionized the way consumers
do research on and purchase securities (Sheth, Sisodia and Sharma 2000).
Why the difference? Securities are quasi-commodities (de Figueiredo 2000).
Like books, CDs, software, and office supplies, securities can be purchased
from multiple sources. It is relatively easy and often free to obtain online
information on these products. Thus, for such items the price, or the
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The Internet affects the personal selling process in many ways and in several
contexts. For ease of explication, we have delineated the personal selling
contexts and type of relationship using a 2-by-2 matrix portrayed in Figure
1. Horizontally, we have “Type of Exchange”—transactional versus
relational, and vertically we have “Personal Selling Context”—Retail (B-to-C)
and B-to-B.
Type of
Relationship
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Transactional Relational
Retail
Cell 1 Cell 2
(B-to-C)
Personal
Selling
Context
4 Although it is not possible to differentiate what portion of these sales are based on
transactional versus relational selling, given the nature of EDI, we expect a sizable
portion to be transactional.
Personal Selling in Retail Settings 305
personal selling process (cf. Dubinsky 1980; Reeves and Barksdale 1984).
Some of these studies have examined differences in the process and in selling
techniques between B-to-B and B-to-C settings and between goods and
services (Dubinsky and Rudelius 1980; Hite and Bellizzi 1985). Other authors
have investigated in depth specific things salespeople can do to improve the
success of the personal selling process such as better prospecting (Jolson and
Wotruba 1992), gaining customer trust (Swan and Nolan 1985), asking
effective questions of customers (Schuster and Danes 1986), and utilizing
good interpersonal listening skills (Castleberry and Shepherd 1993). It is
noteworthy that much of this body of literature was published a decade or
more ago---little work has appeared in the literature on alterations in the
selling process based on today’s technological capabilities.
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the ability of both (1) the salesperson to successfully execute the personal
selling process such that the salesperson is adding value to the customer
encounter and (2) the salesperson and sales organisation to achieve desired
performance goals. Figure 2 portrays a variety of Internet-driven enablers
and limiters on the personal selling process and limitations of Internet
retailing on performance. This figure is adapted from Grewal, Iyer, and Levy
(forthcoming). The next section discusses each of these potential enablers and
limiters in more detail.
Internet Enablers
Personal Selling Process
Performance
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! Access to Information
! Prospecting
! Accessability ! Sales
! Pre-Approach
! Economies of Scale ! Cross-Selling
! Approach
! Information Collection ! Up-Selling
! Presentation
! Profits
! Handling Resistance
! Close
! Post-Sale
The Internet and related technologies have the capacity to enable sales
organisations and their salespeople to better execute the personal selling
process (Grewal, Iyer, and Levy forthcoming). Some of the important
enabling factors are identified and discussed below.
Access to Information
The Internet can facilitate the personal selling process by providing
salespeople and customers with easier access to information. From the
customer perspective, prior to going to a store (or in some cases while at the
store at a kiosk) customers can conveniently peruse the entire assortment
carried by the retailer with minimal effort, inconvenience, and time
investment. As a result, customers have a better idea of what they want
before engaging the help of a salesperson. From the salesperson’s
perspective, they cannot easily match the on-demand provision of
308 Dhruv Grewal, Michael Levy and Greg W. Marshall
Accessibility to Customers
Brick-and-mortar retailers and their retail salespeople are limited by their
physical trade area. A multi-channel strategy that utilizes the Internet for
prospecting customers and promoting the store and its products can greatly
expand a retailer’s trade area. Customers may find a particular retailer by
searching the Internet, and then interact with a salesperson in the store or via
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Information Collection
In their boundary spanning position, professional retail salespeople have
long been actively trained to collect information on their customers. This
Personal Selling in Retail Settings 309
These activities can range from the salesperson questions to augment the
customer’s profile and sales history to actively involving the salesperson is
collecting 360 degree feedback on the organisation and its performance from
customers and all other major stakeholders.
Lack of Trust
Personal selling is inherently the most useful promotional vehicle for
offering high-trust persuasive communication. This type of selling is
important for products such as jewelry and other products or services where
consumers have difficulty evaluating value or aesthetic issues. While
objective communication is often very well represented online, and can be
efficiently searched and indexed, customers may require the decision-making
assistance that salespeople provide.
Lack of Trial
Consumers often require high sensory evaluation and/or trial for
touch/feel and quasi-touch/feel products that can most easily be facilitated
with the help of a salesperson. Although Internet retailers are improving
their ability to provide streaming video presentations and “virtual models,”
they are still inherently deficient in their ability to offer a satisfying pre-trial
experience and evaluation for the majority of commonly bought products
such as clothing, toys, and furniture. By contrast, the products most
frequently purchased via Internet retailers are quasi-commodities, such as
books, software, and music. However, major retailers selling these quasi-
commodities typically do not offer a high level of sales assistance anyway.
Thus, the personal selling process facilitates merchandise trial, and the
Internet has relatively little effect.
Conclusions
Two general product groupings had, in the past, required minimal personal
selling. The first group includes commodities, such as hardware and non-
branded groceries (de Figueiredo 2000). The second group, such as office
supplies, computer products, books, music CDs, and videos, are viewed as
quasi-commodities because they may have a strong brand identity, but are
widely distributed. The selling process for both commodities and quasi-
commodities is typically transactional. Without Internet technology,
salespeople were required to spend one-on-one time with customers to fill
orders and provide information—a very expensive and questionably
productive use of their time. Of course, some customers may develop a
relationship with retailers selling these products, even though the products
themselves generally do not require much sales assistance.5
The efficiency of the selling process for commodities and quasi-
commodities is generally enhanced by the Internet and related technologies.
Customers needing information about these products can readily do so over
the Internet or with in-store kiosks. Salespeople can facilitate the sale by
either using the Internet to garner customer information or to order
merchandise that isn’t currently available in the store.
Unfortunately, by the very nature of these commodity and quasi-
commodity products, customers can use the Internet to learn about the
product at one store and purchase it at another. Further, since these products
are not highly differentiated, customers may shop around for the lowest
price. Of course, price is often not the most important factor when buying a
product.
5Exceptions to this generality can easily be found. Starbucks and Home Depot both
successfully utilize a professional selling staff to sell their commodity-like
merchandise.
Personal Selling in Retail Settings 313
References
Michael Levy, Ph.D. (The Ohio State University) has been a member of the
faculty at Southern Methodist University and served as Chair of the
Marketing Department at the University of Miami for eleven years. He is
currently the Charles Clarke Reynolds Professor of Marketing, Babson
College in Wellesley, Mass.
Professor Levy is co-editor of Journal of Retailing with Dhruv Grewal. He
has developed a strong stream of research in retailing, business logistics,
financial retailing strategy, pricing, and sales management that has been
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