Customer-sales associate retail relationships

Customer-Sales Associate Retail Relationships

SHARON E. BEATTY and MORRIS MAYER University of Alabama

JAMES E. COLEMAN Troy State University

KRISTY ELLIS REYNOLDS University of Central Florida

JUNGKI LEE Alabama A&M University

We examine one-on-one relationships between customer.s and sales associates, which we refer to as

relationship selling to differentiate it from relationship marketing, using a qualitative research

approach. We conducted observations of and interviews with a successful group of retail sales associ-

ates and a set of their “call customers. ” Based on our data, a relationship formation/enhancement

model emerged, which focused on: (I) commitment and orientation to customer service by top manage-

ment and employees, as well as a desire for a relationship by the customer; (2) augmented personal

service and team playing by employees; (3) repeat customer-employee interactions based on trust,

friendship, andfunctionality; and (4) development of customer loyalty to the sales associate andfirm,

and employee reinforcement and loyalty to the company and customer.

INTRODUCTION

Recognition of the importance of relationships in recent years has inspired marketers to

focus on the maintenance of exchange relationships rather than on the accumulation of tran-

sient transactions. Relationship marketing has been addressed in the marketing channels lit-

erature (Amdt, 1979; Dwyer, Schurr and Oh, 1987; Frazier and Summers, 1986) as well

as in the industrial marketing (Hakansson, 1982; Jackson, 1985a, 1985b; Gummesson,

Sharon E. Beatty and Morris Mayer, University of Alabama, Department of Marketing, POB 870225, Tuscaloosa,

AL 35487.0225. James E. Coleman, Troy State University, Sorrel1 College of Business, Department of Marketing, Troy, AL 36082. Kristy Ellis Reynolds, University of Central Florida, College of Busines, Department of Marketing POB 161400, Orlando, FL 32816. Jungki Lee, Alabama A&M University, Department of

Marketing, POB 429, Normal, AL 35762

Journal of Retailing, Volume 72(3), pp. 223-247, ISSN: 0022-4359 Coavrieht 0 1996 bs New York University. All rights of reproduction in any form reserved.

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224 Journal of Retailing Vol. 72, No. 3 1996

1987), and services marketing (Crosby, Evans and Cowles, 1990; Gamble, 1988; Gronroos, 1990) literatures.

Tumbull and Wilson (1989) contend that managing buyer-seller relationships is central to achieving strategic advantage in the marketplace, while Reichheld (1994) argues that managing for loyalty (customers and employees) is the only way to achieve sustainably superior profits. Webster (1994) convincingly argues for a new marketing concept in which delivering superior value to loyal customers is central. He states “customer loyalty has meaning only within the context of relationship marketing” (p. 26).

Customers say they want ongoing, close relationships with sales and service providers but have difficulty finding such relationships (Berry and Parasuraman, 1991). Although some retailers are implementing relationship marketing programs from which they hope to gain the advantages of close, committed relationships with customers (de Lisser, 1994), there is little information available to them about how to design or implement profitable relationship programs. Also, this ,topic has received almost no academic consideration (Berry and Gresham, 1986), with little empirical work (Kwon, 1992).

Relationship marketing within a retail customer context can refer to relationships the customer has with the firm, specific branches/stores/departments, or with individual sales associates. Although all are important, we focus on the ways in which retail sales associates create and maintain close relationships with their customers, which we refer to as relation-

ship selling, differentiating it from the broader relationship marketing concept. Relation- ship selling entails ongoing one-on-one customer-sales associate relationships and thus works better in a service environment in which personalized service is desired by the cus-

tomer. On the other hand, the broader concept of relationship marketing is applicable across a variety of retail settings. For example, promotional materials sent to customers who meet certain qualifications based on their past sales records, i.e., database marketing, is generally considered a form of relationship marketing.

For this study, we identified a high-profit, high-growth, multi-unit fashion operation known for its successful customer-sales associate relationship program. Using a qualitative research approach, we studied in-depth eleven successful sales associates (SAs) and a number of their long-term (call) customers in order to determine what makes the program and its sales associates so successful. We focused on a successful relationship-building firm and on top sales associates because we wanted to learn more about how successful relationship- building SAs build and maintain relationships. This is a form of purposeful sampling aimed at examining extreme cases for enlightenment (Patton, 1980).

In this paper we first present some a priori themes from the literature. Next we present our emergent research design and methodology. Then, we utilize our findings to provide grounded theory, which we refer to as the relationship formation/enhancement model in retailing. Finally, we discuss how our model and findings fit with the a priori themes and other literature in the area and suggest future research needs in the area.

A PRIORI THEMES FROM THE LITERATURE

Most of the work on relationships has been in contexts other than retailing (e.g., services, channels, industrial, and interpersonal). None-the-less, this material should still be enlight-

Customer-Sales Associate Retail Relationship 225

ening for the study of relationships in retailing. Thus, our initial efforts included a review of this literature, from which we drew half a dozen consistent themes potentially relevant to long-term customer-sales associate retail relationships. Often these are simply theoreti-

cal propositions, however, and may not be based on empirical findings. First, relationships are likely to persist only when both parties obtain benefits which out-

weigh the costs (Frazier and Summers, 1986; Jackson, 1985a, 1985b). For the company and sales associate, benefits include greater sales, more positive word-of-mouth, lower costs per transaction, and most importantly, customer loyalty and retention.

For the customer, both functional and social benefits are possible. In regard to functional

aspects, consumers are busier, more time impoverished, and less eager to shop than ever before, increasing their desire to obtain time savings and convenience in any way possible

(Meyer, 1990). In addition, the social aspects of relationships are often critical (Czepiel, 1990; Gra-

novetter, 1985) with both parties deriving satisfaction from an ongoing relationship. Mummalaneni and Wilson (1991) found that closeness of the buyer-seller relationship among users of business forms was a strong predictor of satisfaction with and commitment to a relationship.

Second, maintenance of a relationship is said to be highly dependent on actions of the sales associates, who act as part-time marketers (Gummesson, 1987) or relationship managers (Crosby et al., 1990). This is true for both customer-firm relationships, where service encounters with many employees is most often the scenario, and one-on-one customer- sales associate relationships (i.e., relationship selling situations). Customers’ perceptions of the performance of these individuals tend to determine their satisfaction with and extent of their relationship with the firm (Ghingold and Maier, 1986). Reichheld (1994) contends that customers build bonds of trust and expectations with employees, not with the company, and when these people leave, the bond is often broken.

Third, in the only study we found devoted to relationships in retailing, Berry and Gre- sham (1986) suggest that a retailer must first thoroughly understand the customer and his/ her needs and then apply this understanding in serving the customer. They refer to this strategy as relationship customization.

Next, Czepiel (1990) suggests that relationships tend to evolve and change over time, with parties developing greater trust and dependence as the relationship progresses. His proposed stages include: (1) accumulation of satisfactory encounters and the expectation of future purchases; (2) active participation based on mutual disclosure and trust; (3) creation of a double bond (personal and economic); and (4) psychological loyalty to the relationship.

In the interpersonal literature, Altman and Taylor (1973) suggest relationships move from superficial, non-intimate to more intimate, deeper levels. This progression appears to depend upon a cost-benefit assessment by the parties.

Finally, we note the emphasis on customer orientation in the relationship process at the highest levels of the firm. While employees are the ones to implement customer service, management must be committed to its employees, as well as to its customers, to make it work. Thus, a corporate environment in which properly selected and trained employees are respected and empowered to provide customers with solutions to their problems or needs is required. Webster (1994, p. 28-29) enumerates the centrality of customer orientation in his “new marketing concept.”


The customer-oriented firm is committed to relationship marketing, and employees work together to solve customer problems. Employee morale is a critical success factor in the customer-o~ented company, especially for employees who deliver some aspect of a product’s service bundle.

Reichheld (1994) stresses that the true mission of the firm is to create value for the three

key constituencies: customers, employees, and investors. He says customers should be “first among equals” because their loyalty is the most fluid.

Thus, we drew the following themes from the literature: (1) relationships persist when benefits exceed costs for both parties, where benefits may be functional or social; (2) maintenance of the relationship is highly dependent on the employee’s actions and customer loyalty may be to the employee rather than to the firm; (3) employee actions are dependent on an accurate understanding of customer needs; (4) relationships evolve over time often moving from superficial to deeper levels, implying different employee actions at different times; (5) trust is a critical component in the formation of relationships; and (6) finally, top management must be committed to true customer orientation (and to their employees) in order to produce an environment capable of achieving long term customer-sales associate

relationships. The basic purpose of our study was to learn more about the nature of on-going customer-

sales associate relationships, how they are created and maintained, and what benefits and costs are involved in this maintenance. The literature offers several a priori themes in related contexts, but does not provide the depth that is possible with our approach. Using an emergent design perspective, new ideas and theories, beyond our a priori themes, were allowed to unfold (Lincoln and Guba, 1985; Strauss, 1987; Spiggle, 1994). This was especially critical given the new context in which we find ourselves. The goal is to produce “complex, conceptually woven, integrated theory; theory which is discovered and formulated devel- opmentally in close conjunction with intensive analysis of data” (Strauss, 1987, p. 23).

METHOD

Procedure

Our research plan consisted of a number of stages, including: (1) immersion in the corporate culture; (2) selection of successful sales associates @As); (3) observation of SAs and their interactions with customers in their natural environment; (4) in-depth interviews with SAs after the observations; (5) telephone interviews with customers; (6) follow-up personal interviews with customers; and (7) telephone interviews with mall shoppers to obtain perspectives from some non-relationship customers.

All of the above data were then transcribed, coded, and interpreted in light of the a priori themes drawn from the literature. Data collection and interpretation issues are discussed more fully in the sections to follow. As we progressed in our interpretation, our a priori themes were validated and our underst~ding of them was enriched. In addition, new themes evolved, producing the relationship fo~atio~enhancement model, which will serve as a basis for our discussion in this paper.


Immersion in the culture involved spending an afternoon with the CEO, other top and middle-level management, and a number of staff personnel discussing the company’s culture and policies. Then, one team member spent two days at headquarters conducting in- depth interviews with key personnel and reading over 100 “Customer Love Letters.”

Next, a listing of the company’s most successful sales associates in three nearby cities was obtained from management, from which we selected eleven associates representing a

mix of gender, race, age, departments, and store locations. These individuals were initially contacted by the Vice President for Human Resources.

SA Observations and Interviews. Two members of our research team, one male and one female, served in the field, while the others critiqued and questioned the evolving ideas, serving a “debriefing by peers” role (Lincoln and Guba, 1985). Team members spent between five and seven hours observing each SA in action in the store setting (in situ). Observation times were chosen to maximize the likelihood that call customers would be

present, based on SAs’ best estimates. Same-sex combinations between the researchers and SAs were formed, with team members acting as assistants to the SAs on the sales floor. When activity levels permitted, we talked with other SAs and customers, revealing our identity and desire to learn about the SA and his/her customer relationships. During slow

periods we questioned the SA in regard to our observations. During store observations, observers made brief notes of events and reflections on these

events including the behavior of informants and the comments of SAs and customers. Later, the observers prepared detailed field notes (generally ten or more pages per observation). At the end of the observation period we conducted an in-depth interview of approximately one hour with the SA. Many of our questions focused on verification and reflection of our observations. We asked them to discuss their interactions and relationships, reflect- ing on specific examples we had observed during the day. Other questions centered on why they thought they were successful in their jobs, how they select and maintain call customers, the nature of their interactions with customers, and the positives and negatives involved

with maintaining call customers. Call customers are customers whom SAs “call” when appropriate merchandise arrives and with whom they have ongoing relationships. These

interviews were recorded and later transcribed. Customer Interviews. Eight of our eleven SAs provided us with the names and phone

numbers of three or four of their “best” call customers. Three associates did not provide us

with this information, feeling it would intrude on the privacy of their customers. We interviewed customers by telephone shortly after the store visits. All the customers we reached agreed to participate. However, six customers on our list were not reached after three call- backs. We conducted twenty-three customer telephone interviews and engaged in short interactions with approximately 100 customers in the stores. Broad interview guides were used

for these interviews. However, informants were encouraged to freely discuss the topics. Questions centered on the development and nature of the relationship they had with their

SA, the benefits and costs of the relationship, loyalty to the SA and firm, and perceptions about the behaviors of sales associates. These interviews were recorded and later transcribed.

Record Keeping and Coding. As the study progressed, all field notes and interviews were coded by three members of the research team (two field members and one other) based on Strauss’ (1987) suggested coding schema. This process involved an attempt to map relationships between conceptual elements by coding when certain conditions, con-

228 journal of Retailing Vol. 72, No. 3 1996

texts, strategies, and outcomes appeared and how and if they clustered together. Each mem-

ber separately coded all material and used his/her coded material to form models and

theories of the important points uncovered. Team members met regularly to review and

compare coded materials and working models and themes, a procedure referred to as

memoing (Lincoln and Guba, 1985; Strauss, 1987). As suggested by Lincoln and Guba

(1985, p. 209), “salient elements begin to emerge, insights grow and they begin to be grounded in the data obtained. Hypotheses can be formed and questions posed.” Finally,

material was examined for negative evidence in order to refute our ideas and adjustments

were made where necessary (Glaser and Strauss, 1967). Follow-up Customer Interviews. One of the things we learned from our emergent inter-

pretation of the data was that we did not have adequate depth or understanding of these issues from the customer perspective. This produced two short follow-up studies, which

aided us primarily in our understanding of the costs and benefits of relationships from a

customer perspective. First, seven customers were re-contacted and interviewed in their homes by a team mem-

ber approximately two years after the telephone interviews. From the initial interviews we

learned that customers engaged in relationships based on some combination of functional and social benefits. Thus, we re-interviewed three customers who were heavily motivated

by functional benefits and four who valued social benefits. In a final follow-up procedure, we interviewed 25 customers, randomly drawn from a

recent mall intercept survey, by telephone to gain insight as to why customers do not engage in retail salesperson relationships. We felt this step was necessary because over-

whelmingly the customers engaged in relationships saw only the benefits and not the costs.

Thus, these interviews focused on why they do not have relationships and their perceptions

of the costs and benefits of relationships. Fifteen of these respondents had never had a salesperson relationship, six had a relationship in the past but no longer maintained it, and four

currently have a relationship with a clothing/accessories SA. These follow-up studies were

incorporated into our themes and understanding of the entire relationship process.

Trustworthiness Assessment

We incorporated a number of techniques to maximize the trustworthiness of our findings

(see Lincoln and Guba, 1985; Wallendorf and Belk, 1989). We engaged in reasonably pro-

longed engagement across a number of informants. Team members of both genders and

varying experience with the organization were involved. Also, participants (SAs and customers) of both genders across departments and store locations were queried. These steps tended to provide triangulation across researchers and sources.

Member checking (reviewing preliminary ideas with informants) was employed during and after the interaction and interviewing process to reduce the potential of researcher mis- interpretation (Lincoln and Guba, 1985). Further, the use of alternative techniques provided us with several advantages, as well as triangulation across methods. SA observations allowed us to view SAs and their customers in their natural habitat, while in-store customer interviews and SA interviews enabled us to ask questions relative to what we saw. Finally, follow-up interviews allowed us to examine some differences in customer segments.


The Company Culture

The fashion apparel store chain we chose to study is noted in the industry for its outstand- ing customer service and strong customer loyalty. Currently it has over thirty stores in eight

states. All SAs are on salary plus commission compensation plans and top producers receive

robust paychecks. The firm tries to hire “aggressively nice people” (which was consistent with our observations) and then provides each person with 45 hours of training before s/he

reaches the sales floor. Reinforcement and encouragement, as well as performance-based promotions, are utilized. The company celebrates successes through mechanisms such as a

yearly banquet where top performers are recognized and rewarded, the company newsletter

in which top performers are recognized and letters of praise from customers are printed, and store meetings where success stories are related. Career paths, evaluation, feedback, and open communication are taken seriously and handled professionally.

Another aspect of the culture is its “unique personal service,” which originated years ago

with the founder and is strongly perpetuated today. One way the company keeps this phi- losophy alive is through instructing associates on how to develop and maintain call custom-

ers. The store encourages and trains employees in the proper use of call customer books and uses these in the evaluation of SAs. Associates are trained to give all customers special, personalized service, while also continually expanding their network of call customers.

Although call customers represent a small segment of the customer base for this firm, it is a highly profitable segment. SAs develop extensive profiles on call customers, including

information on sizes, color and style preferences, family members, and birthdays. They act as agents for customers, calling them for special events or when appropriate merchandise arrives. The approach is similar to that of a personal shopper (Solomon, 1987), but all SAs

are expected to participate in the program. All sales associates are encouraged to inter-sell within the store, giving them the oppor-

tunity to fully serve the customer. Many SAs take full advantage of this approach, although cosmetics SAs generally do not sell outside of their areas and Designer Room SAs act as traditional personal shoppers. The eleven observed associates (names disguised), represent-

ing eight departments, five store locations, and three cities, are listed in Table 1.

TABLE 1

Sales Associate Information Chart

Employee sex

Joan F Linda F

Cathy F

Karen F

Carmen F Martha F Bob M

Joe M Ronald M

lake M

Larry M

Race

W

B B

W

W W W

W

B W W

Age Department

54 Career Women’s Suits/Dresses

34 Children’s

49 Juniors’

41 Clinique (Cosmetics)

60 Designer Room (Women’s)

62 Men’s Suits

66 Men’s Suits 34 Shoes

32 Men’s Suits & Sportswear

55 Shoes

25 Men’s Sportswear


INTERPRETATION

Development of Interpretive Themes

Based on our interpretation of the data, our a priori themes were enriched and amplified

and new perspectives were identified. The major steps in the process of relationship forma-

tion and enhancement were the fallout of our interpretive efforts. The concepts in this

model, shown in the Figure, appear to be sequentially related to one another, although rela-

tionships between variables tend to be reciprocal and mutually reinforcing. Elements of the

model serve as the foundation for our discussion which follows.

Facilitating Conditions

As indicated in the model, we identified three factors which strongly facilitate the devel-

opment of long-term customer relationships: top management customer orientation,

employee customer orientation, and relationship-motivated customers. Top Management Customer Orientation. We purposively chose a firm with a high

commitment to its employees and customers. We view this as essential for the successful

implementation of close customer-sales associate relationships. In this study, sales associ-

Figure 7. Relationship Formation/Enhancement Model in Retaling


ates said that management encouraged them to treat their department as their own business

and provided them with the tools to make this work. They said management cares deeply

for its customers and encourages them to make every effort to satisfy customer needs. Employee Customer Orientation. We also noted the strong commitment to customer

service, or desire to serve, exhibited by successful sales associates. Consistently, employ-

ees talked about “taking on customer problems” as their own or “untangling customers’

lives.” A number of them talked about getting personally involved with the customer to

help them solve their problems. Consistently they appear to view the relationship from a

long-term perspective, concentrating on what is best for the customer rather than on making

the immediate sale. The focus on customers was evidenced in a variety of ways and instances. In our study,

one SA described her efforts to be both efficient and effective in satisfying the wants and

needs of several customers simultaneously. This particular SA described the whole store as

her selling area, even when faced with the pressures of a number of busy executive custom-

ers converging at once during the lunch hour.

SA Joan: If I see someone with a bag to return something I immediately go to them. I

feel like it is to my advantage to help a customer with a credit or a problem because

it is a challenge for me and I love a challenge.

We also noted some traits or skills that our successful sales associates seemed to share.

In regard to traits, we noted that all of the SAs in our study possessed positive, warm, out-

going personalities. They tended to be highly self-motivated and to take the initiative

because they felt that they must “pursue” the relationship to make it work. In regard to skills, the SAs in our study possessed strong merchandise knowledge, a fash-

ion sense, the skill to accurately read customers, and the knowledge to know how to suc-

cessfully use their call customer books. Finally, we noted a consistent reliance on

empathetic skills by the SAs we observed, defined as “the ability to sense the reactions of

another person” (Greenberg and Greenberg, 1989, p. 29). This allows them to “take on”

customer problems as their own, as well as to adapt their personality and style to the desires

of their customers and to the stage of the relationship. Although receiving little attention in the literature, empathy is a critical component of

successful selling (Greenberg and Greenberg, 1989; Kirkpatrick and Russ, 1976;

Olshavsky, 1975). It allows one to understand another better, leading to better predictions

of the other’s actions or reactions (Redmond, 1989). Further, empathy allows for greater

intimacy (Durgin, 1990), promoting the social aspects of relationships. Relationship-Motivated Customers. In addressing how SAs chose their call customers,

it appears that they have certain qualifiers, which are used to sum up the likelihood that this customer would be a good relationship customer. First, SAs said they look for customers

who are heavy spenders. Second, they believe that people with a high level of interest in clothing and fashion and/or who lack confidence in their ability to put a wardrobe together

are likely prospects. We noted that an initial contact tended to produce a relationship when:

(1) a personality fit was perceived to exist between the SA and customer (i.e., “it just


clicked”); (2) the customer wanted the relationship; and (3) the SA had the skills (noted

above) to draw the customer into the relationship. Several segments of customers were identified based on the value they placed on differ-

ent relationship benefits. Some shoppers were primarily motivated by social motives

(although functionality is still relevant), while others viewed the relationship primarily in

regard to functional needs (although friendship is still relevant), such as obtaining conve-

nient, hassle-free shopping. For example, one customer told us: “I don’t have time to keep

up with the trends and to mix and match things. Joan does this for me. The social part of

the relationship is not important to me.” Still others weighed function and friendship about

equally. In keeping with one a priori themes, we noted that the relationship often moved from

functional to social, it evolved. For example, one customer said she was initially attracted to Karen because “she knew the product well, believed in it, and what she did looked good

on me.” However, over the years the two had become close friends and often share con-

cerns as single mothers, i.e., the social aspects took on greater importance. In contrast,

many non-relationship customers indicated enjoyment through shopping by and for themselves and confidence in their ability to make fashion decisions. They did not feel that an

SA would offer them an important advantage and in fact, felt that a close relationship with

a salesperson might cause them to feel pressured into buying something they did not want.

Relationship Formation

The above discussion focused on the factors which appear to be conducive to the devel-

opment of a long-term relationship between a customer and a sales associate. Next we focus

on several factors which we found existed in the early stages of relationships and tended to

aid in the formation of that relationship: augmented personal service and team playing. Augmented Personal Service. In our study, many of the behaviors of successful SAs

clearly exceeded customer expectations, which we refer to as “augmented personal ser-

vice.” Some of the augmented personal services performed by SAs in our study included: contacting customers about upcoming sales or new merchandise, reminding them of impor-

tant dates, delivering merchandise to customers’ homes or offices, coming in early or on

their day off to help customers, pulling merchandise for customers ahead of time and from throughout the store, and providing a comfortable store environment for customers while

meeting their time concerns. Augmented personal service seemed to be commonplace for the SAs in our study. For

example, one SA told us that 50% of his sales volume comes from appointment selling or selling by phone or mail. Since many of his customers are busy executives, he often meets them before the store opens. Prior to the customer’s arrival, he prepares coffee and selects

shoes. When the customer arrives, the entire transaction may take less than ten minutes. Also, he talked about phoning customers in advance of sales. If interested, the customer phones him back, orders the shoes, and either picks them up or has them mailed to his home. On our observation day, he had at least 40 pairs of shoes stacked and ready for customer pick up.


SA Joe: I did this for a lawyer on Morris Avenue. His wife called and said, “Joe, he

needs shoes. He is out of shoes and his work load is unreal. Take him some shoes.” I

said, “I sure will.” I took eight pair. I took shoe trees and his charge number and went

to see him, me and the department manager. He said, “I can’t believe this, y’all in my

office. 1 am just so tied up. My wife said maybe y’all would come.” I said, “Sir we are here with your shoes in that bag for you to try on, and if we have something for you, that

is super. If not, we’ll go back and try again.” I laid them all out, measured his foot, and sold him two pair of shoes.

Further, we were informed by this SA that simply sending thank you cards to his custom-

ers tends to overwhelm them. He believed this was so because his customers indicate to him

that there seems to be little real appreciation of their business from most of their service

providers. Given his attitude, it is not surprising that he has been the company’s top pro- ducer in men’s shoes for the past five years, including his first year.

Relationships may also be advanced when SAs aid in the improvement of intrafamily

relationships. We saw this phenomenon occurring in a number of ways, including calling a

customer about an upcoming anniversary or birthday, selecting a gift for a family member where the SA may or may not be familiar with the individual (often handled completely

over the phone), or by intervening between family members who are in conflict on product selections.

CUSTOMER: She is very honest. If it doesn’t look good on my daughter, she will say it is not right. Linda is my right arm when it comes to my daughter because I don’t agree with my daughter’s tastes. But, Linda knows what she likes and we go from there.

Thus, successful SAs appear willing to do just about anything for their customers, with one SA saying that he saw himself as the customer’s “servant though not necessarily sub-

servient.” Customers told us how they call their SAs for just about anything; sometimes with what sounded to us like unreasonable demands (e.g., asking an SA to go to the store on Christmas Eve to pick up something for them) but SAs, even when pressed, expressed

few negative reactions to these demands. We identified augmented personal service as primarily critical to the relationship forma-

tion stage (although it obviously aids in enhancement as well) because a number of SAs

talked about doing something very special or unexpected for the customer in the early stage of the relationship, which would tend to “lock” the customer into a relationship. For exam-

ple, one SA loaned a customer a pair of her own earrings to wear with an outfit the customer had purchased. The customer was so delighted she became “locked” into a relationship with Carmen.

Although the concept of augmented personal service has not been specifically addressed in the literature, a similar concept is that of “customer intimacy” whereby “employees will do almost anything to make sure that each customer gets exactly what he or she really wants.” (Treaty and Wiersema 1993, p. 88).

Team Playing. In this setting, successful associates applied relationship selling princi- ples to other members of the “team” as well as to customers, suggesting the importance of


contact personnel treating other contact and non-contact personnel with care in order to maximize performance. SAs have strong relationships with other SAs in the same depart-

ment (they are team players, not adversaries), in other departments (since they sell through-

out the store), and even in other stores (since they call other stores for merchandise). For example, Joe is perceived by others as doing an extraordinary job of training and

encouraging other SAs in his department. He described a belief that if all associates in his

area were as knowledgeable and service oriented as he is, it would benefit the entire group,

himself included. He believes customers will know that regardless of the particular associate who helps them, they will receive the best advice.

The team includes anyone involved in helping the SA better serve the customer. For

example, a good relationship with the alterations people is necessary in areas where these activities are regularly utilized. Ronald works hard to maintain good relations with the peo-

ple in alterations, calling them by name, knowing about their families, and laughing and

joking with them almost continuously while in the area. We suspect that is why he gets the

fastest alteration turn around in the store. In fact, we were told of two occasions in which customers bought a suit requiring minor alterations during their lunch hours. Both left the

store with their fitted suits within the hour. Thus, for the SAs with whom we spoke, rela-

tionships are important, whether they are with customers, other SAs, alterations people, buyers, managers, or others in the company.

In this company, successful SAs serve as role models to new employees (called shadow-

ing) and less successful SAs, constantly seeking to help others succeed. SAs in our study

appear to view this behavior to be in their best interest. On a macro-level this posturing revolves around perpetuation of the company’s culture through the development and main-

tenance of strong, positive norms and role-relational behaviors (Kwon, 1992). On a micro- level, some associates expressed the belief that if their fellow workers are strong, everyone will benefit, including call customers who might need help when the SA is not in. The result

of team playing is more effective service delivery in a more hospitable work environment. This concept was placed under relationship formation because relationships between sales

associates and customers may never form if the SA does not “lean” on the team and the type

of service obtained from properly utilizing the team.

Relationship Enhancement

We found that due to excellent service delivery early on in a relationship, a bond or close relationship between the customer and SA may result, consistent with our a priori themes. Then, as repeat customer-employee interactions occur, the relationship appears to be enhanced when customers perceive several elements to be consistently present in the relationship: trust, friendship, and functionality. As the relationship progresses, these elements appear to determine the strength and likely continuation of the relationship. Each builds on one another and is reciprocal, with SAs also experiencing trust, friendship, and functional

benefits from customers. Trust. In our study, SAs earned their customers’ trust by continually demonstrating that

they had the customers’ best interests at heart. The skills required to meet customer needs


also contribute to the development of trust. Customer problems solved honestly and skill-

fully reap benefits for buyer and seller alike.

SA Ronald: If I don’t think it is going to look good on you, I will tell you. I find

the key is just being honest. If you can really speak truthfully from your heart, it works.

Lots of salespeople just sell to make the sale, but I sell from the customer’s point of

view.

Other associates also noted the importance of patience, self-respect, and respect for other

individuals, emphasizing the importance of being honest with customers and being truly

concerned about what is best for them.

SA Bob: A visiting professor at the university came by on his last day to buy three or

four sport coats and a couple of suits. He was returning home to Japan, and said our

prices are a lot better. When we didn’t have his size in some of the items, he wanted to

buy sizes that wouldn’t even fit him. And I wouldn’t let him have them. I told him,

“What I will do is charge this to you while you’re here, but I will be getting in a coat

that will fit you when you receive it.” So I transferred it in from another store and

shipped it to him. He was willing to take a regular or a smaller or larger, but I can’t do

that. I can’t sell for the sake of selling. You don’t get customer satisfaction that way.

Since then, I have sent him overcoats, shirts, and pants.

We found that SAs developed customers’ trust by exhibiting extensive product, mer-

chandise availability, and/or fashion knowledge, by using their knowledge of the customer

to select merchandise that is “perfect” for them, and even by helping them coordinate mer-

chandise purchased elsewhere. The importance of trust and honesty were also emphasized continually by customers.

CUSTOMER: She is truthful, if I have any questions as far as what to buy or as to how

something looks on me . . I don’t think she is just trying to do a sales pitch. I think she

tells me what enhances me personally instead of trying to make a sale.

Friendship. Relationships were often discussed by customers in social terms in our

study. Strong associate-customer friendships were common, although most were consid-

ered “business friendships,” not extending beyond the work place. One customer referred

to her SA as “like family” and said she brings baked goods to her to show her appreciation.

Another customer said it was her associate’s “taking the relationship to a close, personal level” that kept her coming back.

There are a number of potential strategies which sales associates seem to use to facilitate

the formation of friendships. For example, knowing and using the names and preferences

of family members is a strategy shared by many successful SAs.


SA Linda: If you really get to know them by name you can go a long way with them and they will respect you a lot more, too. Anyone can come in and shop. But, if they

come in and you say, “How are you doing Mrs. So and So,” they just kind of light up.

Another SA told us that he usually greets customers by their first names, inquiring about family members, their business, or a recent trip they might have taken. He said his personal

knowledge about his customers simply accumulates over time as he gets to know them.

Many SAs told us that they believe that most customers want close relationships with

salespeople. They suggested that the personal contact with customers over time allowed

them to better understand their needs and to provide them with the personalized assistance

they wanted.

SA Larry: To me, the secret of selling is getting to know the person to the point that

you have a friendship-type relationship, because that makes the person relax more and open up. You are able to find out their needs and they tend to accept things a lot easier

if they don’t feel like you’re being pushy, necessarily. You can suggest things and there- fore, sell more, just because they are not on the defensive.

Functionality. Finally, the importance of functionality cannot be overestimated. In our

study relationships often worked because customers are very busy and/or dislike shopping.

They want fashion advice, as well as convenient, hassle-free shopping. They know the ser-

vice they are receiving is unique because they can not find it elsewhere. For example, one

customer, Don, has had a relationship with Bob for ten years. He hates to shop, considering

it a waste of time. When Don needs something, he calls Bob, who “fixes me up, and I am

out of there in a flash.” In a similar example, Mary is a busy business executive who does not have time to shop

and relies on her SA, Carmen, for her complete wardrobe needs. She told us that she buys

almost everything Carmen selects for her and would not shop with this firm were it not for

Carmen and her strong fashion sense. She stated, “Carmen’s services have cut my shopping

time in half.” Another customer provided a similar perspective on her SA.

CUSTOMER: I have never met anybody like Linda. You can call her on the phone,

describe something you want, just tell her what you’re looking for, and she finds it for

you. I can tell her I am coming in on a certain day and she will just put everything aside. She will be ready for me to pick out a summer wardrobe for my children, or my winter wardrobe. She has always been there when I needed her.

Outcomes

The outcomes of relationships can be viewed from both the customer side and employee

side, but they also tended to reinforce one another in our study. That is, as the customer becomes pleased with and committed to a relationship, this increases the pleasure felt by


the employee as well. Further, it is these positive outcomes that feedback to produce

employees more committed than ever to customer service and relationship formation, while

customers become more committed to the relationship and perhaps, seek other similar rela-

tionships in the retailing or service sectors. Customer Loyalty to the SA and the Firm. Relationships between SAs and their call

customers have benefits for all parties. For the company, it means higher sales and more loyal customers. In our study, customers showed a great deal of dependence on their SAs,

both socially and functionally. As customers depend on SAs, they are less likely to be lured

away by competition. This is consistent with Czepiel’s (1990) observation in services that the relationship “protects and binds” the parties together.

In our study, loyalty to SAs was evidenced in forms such as holiday greetings and con-

tinued patronage over extremely long distances. For example, Bob discussed his ongoing relationships with customers across the country, and even in Alaska and Japan, which he

attributed to the special services he provides them. He discussed customer loyalty in terms of the affection shown to him by his long-term customers.

SA Bob: At Christmas a lot of times, they [customers] will walk through on their way

to some other department and say, “Hey Bob, I don’t need anything, but I just want to wish you Merry Christmas and say hello.” And that means as much to me as a sale and I appreciate it.

We noted that customers appear to engage in extensive word-of-mouth advertising. For example, one SA, Joe, told us about a customer who worked at the local Veteran’s Hospital.

The customer told him that it was the first time in years he had been sold a shoe that actually

fit him. He told everyone he knew at the hospital about the great service he received from Joe and Joe got a number of referrals from this. Illustrating the importance of word-of-

mouth, Gremler (1994) found that many customers cited it as the major source when mak-

ing a purchase decision while others viewed it as the best source. Customers feel more positively disposed towards the company as well, with the positive

feelings towards employees “rubbing off’ on the company.

SA Joe: This firm has one of the most loyal groups of customers that follows them that I have ever seen. And I worked with some of the largest department stores in the world.

The reason for that is the treatment they get.

Consistent with our a priori theme, we noted in our study that call customers indicated

that their primary loyalty was with the SA, although there was some secondary loyalty to the firm. SAs told us about many lost customers who followed an associate who went to

work for a competitor. When we asked customers what they would do if their SA moved to

another store nearby, almost all of them said as long as the merchandise was equivalent, they would follow their SA.

CUSTOMER: I hate to tell you, but I would go with Carmen. I really would because

I feel that if she went with another store, I would trust her judgment, in the first place.


She would certainly research that store and she would know the lines they had to offer, whether they were good, bad or indifferent, whether they service most of their customers or not, but she would still give me the same service that she did before.

Employee Reinforcement and Loyalty. In our study SAs reaped many benefits. They had a richer life and job because of their customer relationships. They talked about self-

worth and accomplishment and the stimulation received from helping their customers. We

felt the excitement and warmth of these people and saw it through their customers’ eyes. It

is interesting to note how personally and profoundly rewarded SAs in our study felt in help-

ing and serving their customers. In our study the positive reinforcement provided by call

customers appears to provide job satisfaction to SAs. Of course, internal rewards (e.g., rec-

ognition, promotions) are necessary, too, to solidify the connection between SAs and the

firm. The loyalty and psychological commitment of SAs to the company grows because

they are committed not just to the company, but also to their customers. We noted that in our study, as long-term relationships blossomed and positive word-of-

mouth led to other relationships, SAs’ jobs became easier. As established customers’ needs

were expediently handled, SAs had more time to devote to newer relationships. Employee Frustrations or Costs. In the course of our study, we found that surprisingly

few SAs exhibited f~s~ation with the many customer demands placed on them. However,

we did note a few SA frustrations or costs in our study. Some revolved around the SAs’

high expectations of their own performance. For example, Bob discussed his efforts to

“desperately remember names” and his discomfort in trying to fake it. He also discussed

the need to segment his customer lists into two tiers because of its size, leading to lower

than desired contacts with second-tier customers. Several SAs expressed a concern that their personal involvement with the customer would produce lower sales. For example,

Carmen felt that she lost out on other potential sales because of the time spent providing

personal service and listening to customers “pour their hearts out . . .” Other concerns focused on customer demands not allowed by company policy or difficult

to meet, rather than on demands that might simply be inconvenient for the SA. For example,

Bob and Martha talked about customers who seemed impossible to please while other SAs expressed concerns about customers who either took advantage of the relationship or the

company’s liberal return policies. Also, Joe indicated his closeness to customers occasion-

ally leads to unreasonable requests, such as requesting that he hold merchandise until an upcoming sale. The idea of problem customers in service settings was recently discussed

by Bitner, Booms, and Mohr (1994). In our study, relationship customers have the potential

of being better than average customers (e.g., showing greater warmth to the SA), but they may also create a greater problem because they have learned that even unreasonable

demands are often met by their obliging sales associate. Relationship customers did not report any significant costs or frustrations in these rela-

tionships, although we consistently probed for negatives during the interviews. Further,

even the six mall customers who reported having a SA relationship in the past but no longer had one had no negative reasons for the demise of the relationship. Instead, reasons involved the customer moving or experiencing a lifestyle change or the SA moving or retir-

ing.


Apparently, the customer costs for forming or maintaining a relationship with a retail sales associate are simply too low to be relevant. In discussing how their relationships initially formed, they seemed to occur in a serendipitous manner rather than something customers sought out. That is, generally the SA sought them out rather than vice versa. Thus, customers who chose to remain in relationships, and reap the benefits, perceived few costs, while other customers, perceiving less benefits relative to costs, could quietly slip away. On the other hand, SAs saw relationships as a necessary tool used to perform well in their jobs and were more inclined to see both the positives and negatives, noting their inability to eliminate unpleasant relationships.

Finally, from our interviews with customers who had never had a relationship with a retail SA, we found that non-relationship customers did not perceive the benefits as strongly as relationship customers, preferring to shop for themselves. Of the fifteen respondents in this category, only a few could think of any potential costs of having a relationship with a SA. They felt that perhaps the SA might push merchandise on them or that they would feel obligated to make a purchase. Several said they would like to have such a relationship but have been unable to find one.

DISCUSSION

The relationship marketing perspective, which evolved in the channels and industrial areas, has moved mainstream in recent years and has wide applicability across marketing domains (Morgan and Hunt, 1994). We examined one element of it here, the one-on-one relationship between the customer and sales associate (i.e., relationship selling) in a retail context.

We began with half a dozen a priori themes from the literature, none of which were con-

tradicted in this study. Often these themes came from diverse domains and seldom were backed by empirical findings. We focused on sales associates because relationships are highly dependent on their actions. The results of this study suggest that SAs’ own customer orientation (which includes elements such as their commitment, motivation, and skills) is dependent upon top management’s customer orientation. We should note, however, that we have the observation of only one high service firm on which to base this statement. This finding is consistent with a finding in another domain in which an organization’s market orientation was found to positively influence the degree to which a sales force practices

customer orientation (Siguaw, Brown and Widing’s, 1994). Customer-oriented employees have been identified as critical to long-term relationship

development (Dunlap, Dotson and Chambers, 1988; Saxe and Weitz, 1982). However, this concept has not received much attention. We see it as a critical link in the relationship formation process.

One idea that surfaced in our examination of employee customer orientation was the importance of empathy. Our emphasis on empathy in forming and enhancing relationships expands on Altman and Taylor’s (1973) social penetration theory, in which relationships become deeper and more personal as interactions proceed and time passes. An empathetic salesperson knows when and how to take relationships to closer, more personal levels. S/he can read what customers want from the relationship and deliver what is


expected and desired, taking some relationships to a close, personal level while maintaining safe, non-personal but highly functional relationships with others. While adaptive selling has been addressed extensively in the literature (Sharma and Levy, 1995; Sujan and Weitz, 1986) the role of empathy in this process has received much less attention (Dawson, Soper and Pettijohn, 1992; Parasuraman, Berry and Zeithaml, 1991). In fact, in Dawson et al.‘s study of car salespersons, no relationship was found between empathy and success in sales, suggesting the need to more fully study when this variable is or is not relevant.

As noted above, the idea of empathy allows a salesperson to read his or her customer. This brings into play the third facilitating condition to consider prior to the formation of a relationship. Although, in general, relationships tend to move from functional to social (i.e., superficial to deep), we discovered that customers may, in fact, be segmented based on their desire for either a functional relationship, a social relationship, or a combination of the two. For example, some relationships may stay primarily functional forever, if that is desired by the customer. Relationship motives have not been articulated in the literature with one exception, which was in a follow-up study to the current study (Ellis, 1995).

On the other hand, shopping motives have been addressed extensively (Bellenger and Korgaonkar, 1980; Westbrook and Black, 1985) and both functionally and socially motivated shopper types have been identified. Social and functional benefits and bonds have also been identified in the relationship literature. However, bonds and benefits are not equivalent to motives and shopping motives are different from motives for relationships. We believe that relationship motives have tremendous potential as a segmentation variable.

In a recent article, Sharma and Levy (1995) stress the importance of categorizing customers by retail salespeople. It would seem that relationship motivation would be one important way to categorize customers.

Next we noted a connection between employee customer orientation, relationship-motivated customers, and SA performance which appear to facilitate relationship formation: augmented personal service and team playing.

Augmented personal service is similar to a number of ideas in the service quality literature (e.g., customer delight) but seems to have rarely been the object of research efforts in the service literature. Parasuraman et al. (1991) address the importance of exceeding customers’ expectations in their process dimensions (i.e., responsiveness, assurance, and

empathy) while Schlossberg (1993) stressed the need to produce “customer delight,” which involves satisfying customers’ deeper emotional levels.

Further, the notion of SA “relationships” was expanded to take into account the high degree of team playing in which our successful SAs appeared to engage. In a similar vein, Berry, Parasuraman and Zeithaml(1994) suggest that the presence of service “teammates” is an important dynamic in sustaining servers’ motivation to serve. Also, Heskett et al. (1994) stressed the importance of internal quality. They suggest this relates to how effective employees feel they are able to be in their jobs, as well as how well they work together to achieve objectives. These ideas are consistent with what we observed. That is, “You have to create an environment that makes every employee a team member” (Mohr-Jackson, 1991).

This idea is akin to internal marketing (i.e., treating employees as internal customers), which has received some attention (George, 1990; Gronroos, 1990; Pfau, Detzel and


Geller, 1991). Internal marketing focuses primarily on non-contact personnel treating contact personnel as internal customers, while team playing has a broader focus, i.e., all personnel treating one another with respect to maximize team efficiency and effectiveness.

As the relationship matured, we noted several elements that seemed to be critical in the repeat customer-employee interactions to produce relationship enhancement (or solidifica- tion): trust, friendship, and functionality.

The importance of trust in buyer-seller relationships has been emphasized in the literature (Czepiel, 1990; Dwyer et al., 1987; Hawes, Mast and Swan, 1989). In our data, trust was earned by the honest actions of SAs aimed at benefitting their customers, leading to a strong bond between the parties and a dependence on the SA for future actions. Our findings are consistent with Macintosh, Anglin, Szymanski and Gentry (1992) finding that high performing salespeople place more emphasis on establishing trust between themselves and their clients than do lower performing salespeople. Further, consistent with our model and findings, the service literature identifies trust as a critical precursor to customer loyalty (Berry, 1993; Schurr and Ozanne, 1985).

Another important variable which we identified that appears to enhance relationships was friendship. The literature aids us in interpreting the data by suggesting that continuous interactions lead to social (personal relationships) and structural bonds (economic/func-

tional bonds, Wilson and Moller, 1988). Frenzen and Davis (1990) indicate that the accumulation of social capital in a “business” friendship leads to greater willingness to lend assistance and to higher levels of trust, suggesting the reciprocal nature of trust and friendship. Long-term relationships facilitate openness, resulting in the parties knowing each other better, which allows the service provider to better meet customer needs, which, in turn, produces greater trust by the customer (Czepiel, 1990).

The third element discussed under relationship enhancement was functionality. The literature and our observations suggest that functional aspects are more relevant initially, with trust developing as needs are met, as well as by a show of warmth and friendship, which fits with our a priori theme of relationships becoming closer over time. SAs show they care by remembering much about their customers and their lives-even names and thank you

cards help tremendously in the early stages of the relationship because they indicate that the SA thinks the customer is important. As the relationship matures, the SA finds that details are easier to remember because they build on one another.

One important issue which is suggested from our findings is that “the relationship” tends to be with the SA rather than with the firm, although loyalty does appear to partially transfer to the fiml. Although this idea has been previously suggested in the literature, there has really been no empirical work to establish its veracity or its parameters.

This point suggests the importance of distinguishing relationship selling (i.e., locking the customer and sales associate together) from the broader concept of relationship marketing (i.e., locking the customer to the firm). Firms must decide how much they wish to rely on relationship selling versus relationship marketing. Although this choice will depend on the type of salesperson-customer interaction desired in the firm’s context, it is also dependent on decisions made by the firm. For example, the firm in this study choose to encourage employees to engage in realtionship selling for a considerable proportion of their sales, althouth this approach is not traditionally used in department store sales. The one-on-one selling approach offers a number of advantages but a firm must be prepared to expend the


effort to get there by providing the appropiate corporate culture and adequate employee resources and incentives.

Further, with relationship selling, it is especially critical for the organization to insure

that SAs are adequately rewarded and challenged in their jobs. This will aid in producing

greater SA loyalty to the company, where both their economic and psychic needs are met. This is consistent with linkages found between employee satisfaction and commitment to the organization (Michaels, 1986). Further, their loyalty will help insure their customers’

loyalty. Fo~unately, an ~)rganization that cares about its customers generally also cares about its employees (Beatty, 1988; Kwon, 1992; Schneider, Parkington and Buston, 1980).

Noting the importance and personal satisfaction expressed by our SAs in tackling and solving difficult customer problems, it is interesting to note that Heskett, Jones, Loveman,

Sasser and Schlesinger (1994) reported a proprietary study of an insurance company in

which a primary source of job satisfaction was the service employees’ perceptions as to how well they met customer needs. In addition, they found a strong linkage between

employee satisfaction and employee loyalty. Additionally, employee and customer costs were addressed. Clearly there are disincen-

tives involved in building relationships, causing some SAs to focus on discrete exchanges rather than on forging relationships. The endoyee’s choice of which approach to use is

likely to depend on a set of complex factors such as the company’s culture, their orientation, and resources available to them, and their reading of the customer and situation. On

the other hand, customer costs appeared negligible for both relationship and non-relationship customers, suggesting the ease with which customers can “take or leave” these rela-

tionships.

Contributions and Future Research

This paper contributes to the literature by: (1) showing that customer-associate retail relationships share many of the same themes as in other selling or relationship contexts, (2)

providing a comprehensive model of relationship formation and enhancement in retailing, in~o~orating top management, employees, and customers, as well as antecedents and con-

sequences, and (3) illustrating some new ideas (e.g., segments based on relationship

motives) and elaborating on new ways to think about old ideas (e.g., augmented personal

service and team playing). As suggested by Weitz (1979), large differences in successful selling are likely to exist

in different contexts. Our context was very specific-retail sales focusing on relationship customers in one retail chain. We were unable to locate any other comprehensive study in this context (or in any other context). Given the possible idiosyncrasies involved in this one-firm, small sample effort, future studies need to expand on this work, exploring the ideas and model presented here.

Future research efforts need to better focus on employee customer orientation. Even in a customer-o~ented environment, not all employees are committed to meeting customer needs. Our successful employees displayed this orientation and possessed a number of similar traits and skills. But do unsuccessful employees also exhibit this orientation, but fall


short in regard to delivery (i.e., ability to carry it out)? Or, instead, do they lack the motivation or commitment to meet customer needs? This question awaits empirical study. Further, how can companies encourage employees to exhibit greater concern and empathy for customers?

It seems to us that this information would be critically important to an organization attempting to become adept at relationship selling. Salespeople, attempting to form relationships with customers, must be trained to look for signs in terms of whether the motivation is primarily functional, social, or a combination. Researchers need to delve into the precursors to these motives, as well (see Ellis 1995 for an early attempt in this direction). For example, customers’ desires to have relationships probably depends on personal needs, as well as on the involvement they have with the product or service category. Then, salespeople need to be able to adapt their approach based on which motives most strongly influence their customers.

Further, once salespeople have the proper orientation and have located customers desir- ing relationships, they must implement strategies to aid in relationship formation and enhancement. However, almost no research effort has been devoted to studying how augmented service levels should be implemented in retail organizations and likewise in ascer-

taining the true value of providing this type of service. Given the likely costs of implementing such a program, it would be useful to clearly identify which tactics will produce the best cost-benefit ratios for which customer types in various service organizations. Further, how much should trust versus friendship versus functionality be emphasized and how should these emphases vary depending on the firm, SAs, and customer types?

Additionally, there is much to be gained from understanding the internal quality of an organization, which would focus on employee-employee relationships and their impact on employee-customer relationships. This is again a topic which has received more lip service than actual academic research even in the organizational behavior literature.

In a review of the human resource management, organizational behavior, and sales management literatures, we found considerable discussion on the importance of intrinsic rewards (i.e., rewards derived directly from or inherent in the task or job itself), such as accomplishment, and their positive influence on employee commitment and performance (Mottaz, 1988; Walker, Churchill and Ford, 1977; Weitz, Sujan and Sujan, 1986). How- ever, we did not find specific reference to the idea of social connections and friendships achieved with customers as intrinsic rewards for employees in these literatures. In contrast, we found that the intrinsic rewards employees obtained from relationships were highly relevant and motivational in our study. Thus, we believe that an examination of employees’ social motives and rewards for engaging in relationships is an area ripe for examination, especially as close, ongoing customer relationships continue to be the business model of the future and are now viewed as essential in the new marketing concept.

Finally, we believe it is essential to know how customers cognitively associate the SA or service provider to the organization and vice versa. Obviously, this issue has tremendous implications for the implementation of relationship selling. For example, it suggests that firms that do not treat their contact employees well could actually lose money and customers by implementing a relationship selling program. It also suggests that firms engaging in relationship selling as a key strategy need to develop and implement specific policies and programs aimed at retaining their customers when successful relationship-building SAs choose to leave the firm.


The decision to engage in a relationship selling program involves both identifying the

company’s and sales associates’ strengths and weakness and the customers’ desires for such a program. Future research should focus on the costs and benefits attached to creating and fostering relationship-building SAs versus SAs who focus on meeting customers needs through discrete transactions, while also examining the costs and benefits of these relationships from the customer perspective.

Acknowledgment: This research was partially funded by the Hess Retailing Institute and by a research grant to the first author from the College of Commerce and Business Administration, The University of Alabama. The authors wish to thank Leonard Berry, Richard Celsi, Sean Dwyer, Michael Guiry, Richard Lutz, Kent Monroe, John Sherry, Terry Shimp, Brian Stemthal, the editor and an anonymous referee for their comments on earlier drafts of this manuscript.

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