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Industrial Marketing Management 37 (2008) 554 – 564

Changes in sales call frequency: A longitudinal examination of the


consequences in the supplier–customer relationship
Sergio Román ⁎,1,2 , Pedro J. Martín 3
Marketing Department, Facultad de Economía y Empresa, Universidad de Murcia 30.100 Espinardo (Murcia), Spain
Received 24 November 2005; received in revised form 23 December 2006; accepted 28 December 2006
Available online 20 February 2007

Abstract

Sales calls are one of the most valuable and expensive resources available to industrial sales managers. The main purpose of this research was
to look at the relationship between an increase in sales call frequency and some important outcomes in the buyer–seller relationship. To do so, we
adopted a longitudinal research design where data from 357 customers of one industrial supplier were obtained over a two-year period of time.
Results indicated that an increase in call frequency has a positive effect on sales volume, perceived service quality, perceived value for money and
overall customer satisfaction. Furthermore, these effects tend to diminish as relationships become longer, and are stronger at higher levels of
hierarchy in the buying company.
© 2007 Elsevier Inc. All rights reserved.

Keywords: Buyer–seller relationships; Sales call frequency; Longitudinal

1. Introduction ment cost survey reports an average cost per sales call of US
$169.644 (Marchetti, 2000).
Personal selling represents an important resource as well as a This study focuses on quantity of calls, rather than on quality
huge investment for many industrial firms. Though business of calls. Contact intensity (i.e., call frequency) has a major
relationships are established between organizations, they are impact on the development and maintenance of the buyer–seller
actually managed by individuals. In fact, “people make a relationships. Frequent contact facilitates relationship selling
relationship work or fail” (Wilson & Jantrania, 1995). The strategies focused on working with the customers to give them
salesperson is still the primary point of contact for the customer what they need when they need it (Jolson, 1997). With an
in industrial markets (Homburg & Stock, 2004), and more increase in frequency of interaction, parties can more easily
importantly, in competitive environments, organizational exchange information, and they can more easily predict each
buyers who are interested in establishing long-term relation- other's behaviors due to increased time spent together across
ships are increasingly demanding higher level of contact and various situations (Doney & Cannon, 1997). In addition,
value-added services from salespeople (Liu & Leach, 2001). contact intensity is particularly important for the seller
Nevertheless, the most recent Sales and Marketing Manage- company: calling frequently may in fact close more sales.
The present study addresses two managerial research
⁎ Corresponding author. Tel.: +34 68 367891; fax: +34 68 367986. questions in the context of established supplier–customer
E-mail addresses: sroman@um.es (S. Román), pjmartin@um.es relationships: (1) how does an increase in the sales call
(P.J. Martín). frequency affect the supplier–customer relationship over time in
1
An earlier draft of this manuscript was awarded the Best Paper Award in the terms of sales volume, perceived service quality, perceived
Sales, Sales Management and Direct Marketing Track at the 2005 AMA value for money and overall customer satisfaction?, and (2) are
Summer Marketing Educators' Conference.
2
The authors would like to thank the three anonymous reviewers for their
4
helpful comments and suggestions. This information is based on a survey of 238 high-level sales executives
3
Tel.: +34 68 367987; fax: +34 68 367986. conducted in the U.S.A.

0019-8501/$ - see front matter © 2007 Elsevier Inc. All rights reserved.
doi:10.1016/j.indmarman.2006.12.004
S. Román, P.J. Martín / Industrial Marketing Management 37 (2008) 554–564 555

these effects moderated by the length of the buyer–seller buying context. Then, we describe the research method and
relationship and the hierarchical position of the contact person present the results and key implications of the findings.
in the buying organization? To do so, we adopt a longitudinal
research design where data from 357 customers of one industrial 2. Literature review
supplier were obtained over a two-year period of time.
In the literature review that follows, earlier research on sales Several studies in the sales management literature have
call frequency is addressed. Building on this review, in the placed special emphasis on sales force allocation strategies.
subsequent section, we develop a theoretical model that outlines These studies can be classified on the basis of their different
the consequences of frequency of interaction in an industrial measures of selling effort. These alternate measures include the

Table 1
Consequences of contact intensity in the buyer–seller relationship
Author(s) Context of the study and sample characteristics Results
Crosby, Evans, and Cowles (1990) Final consumer–salesperson Frequency of contact with the
Cross-sectional data from 151 salesperson positively
owners of whole life insurance influenced customer's perceptions
policies. of relationship quality (satisfaction
and trust in the salesperson).
Heide and Miner (1992) Buyer–supplier. Frequency of contact had a positive
Cross-sectional data from 155 effect on the level of buyer–seller
industrial buyers (firms involved cooperation.
in general machinery, electrical and
electronic machinery and
transportation equipment) referring
to their largest firm supplier (data
from 60 suppliers was also obtained).
Frankwick, Porter, and Crosby (2001) Final consumer–salesperson. Salesperson–customer contact
Longitudinal data from 983 owners improved the salesperson–customer
of whole life insurance policies. relationship status.
Barnes (1997) Final consumer–salesperson. High levels of personal contact
Cross-sectional data from 400 contributed to higher levels of
retail bank customers. customer satisfaction, relationship
strength and relationship closeness.
Doney and Cannon (1997) Industrial buyer–salesperson. Frequency of business contact with
Cross-sectional data from 210 the salesperson positively influenced
members of the National Association the buying firm's trust of the
of Purchasing Management salesperson.
(codes 33–37).
Boles, Brashear, Bellenger, and Barksdale (2000) Organizational buyer–salesperson. Frequency of contact with the
Cross-sectional data from 1009 salesperson positively influenced
business customers of a Fortune customer's perceptions of relationship
500 communications firm. quality (satisfaction and trust in the
salesperson).
Beverland (2001) Organizational buyer–salesperson. Salespeople generally argued that
In-depth interviews with 30 constant contact with customers is
salespeople of organizations that critical to building a more intimate
employed at least 500 employees. relationship with the customer.
Cannon and Homburg (2001) Industrial buyer–supplier. Frequency of face-to-face
Cross-sectional data from 529 communication between the industrial
American and German buyer and different supplier personnel
manufacturing firms in the lowered operations costs for customer
chemical, mechanical and firms.
electrical industries.
Nicholson, Compeau, and Sethi (2001) Wholesale buyer–salesperson. The buyer's general level of liking for
Cross-sectional data from 238 the salesperson was positively influenced
wholesale franchisees for new by frequency of personal interaction
agricultural machinery. with the salesperson.
Respondents provided information
about the relationship with their
major supplier's salesperson.
Schultz and Evans (2002) Organizational buyer–manufacturer. Customer's perceptions of key account
Cross-sectional data from 122 representative role performance, trust
organizational buyers of a Fortune in the key account representative and
500 consumer goods manufacturer. synergistic solutions were positively
influenced by frequency of contact.
556 S. Román, P.J. Martín / Industrial Marketing Management 37 (2008) 554–564

number of salespeople (e.g., Lucas, Weinberg, & Clowes, 1975; focused on intermediate outcomes of the relationship from the
Ryans & Weinberg, 1987), the number of sales calls to be customers' perspective. Yet, if the sales manager decides to
completed (e.g., Spiro & Perrault, 1978; Parsons & Abeele, increase sales calls, taking into account that they are highly
1981), and the amount of customer contact time (Beswick & expensive and time-consuming, he/she would like some
Cravens, 1977; Lodish, 1971; Parasuraman, 1982). Most of this assurance that it would filter through to some more concrete
work is concerned with the analysis of the factors that determine and objective outcomes such as sales volume.
the selling effort. For example, Lodish (1971) developed one of Second, the current study adopts a longitudinal research
the original, but still popular, interactive computer system design where data were gathered over a two-year period of time.
(CALLPLAN) designed to aid salespeople or sales managers in Most of the previous studies5 have employed cross-sectional
allocating sales call time more efficiently. The study by Spiro (single survey) designs. Although the use of longitudinal data in
and Perrault (1978) reported on an empirical investigation of the a non-experimental study does not necessarily establish
relationship between call frequency of salespeople and select causality, it does provide stronger support for causal relation-
characteristics of the market, the customer, and the salesperson– ships than can be inferred from analysis of cross-sectional data
customer interaction. Similarly, Parasuraamn (1982) proposed a (Menard, 1991). Furthermore, several researchers have called
conceptual framework for establishing a sales call effort for longitudinal research in the context of personal selling. For
allocation plan that considered factors such as competitive example, in a recent review of the field of sales research, Tanner
pressure, account familiarity, multiple buying influence, (2002) noted that: “we don't need more calls for longitudinal
purchase assortment, and account potential. research — let's agree here that we know it needs to be done”
As shown in Table 1, more recent empirical work addresses (p.570).
the consequences of contact intensity/frequency of contact Third, to the best of our knowledge, none of the previous
between the buyer and the seller. Much of this research has been studies has incorporated the analysis of moderating variables on
conducted in a business-to-business context (Boles, Brashear, the consequences of an increase in contact intensity in the
Bellenger, Barksdale, 2000; Cannon & Homburg, 2001; Doney buyer–seller relationship. Fig. 1 proposes that the direct effects
& Cannon, 1997; Heide & Miner, 1992; Nicholson, Compeau, are moderated by the length of the buyer–seller relationship and
& Sethi, 2001; Schultz & Evans, 2002), and, to a minor extent, the hierarchical position of the contact person in the buying
in a business-to-consumer context (Barnes, 1997; Crosby, organization. Such analysis may provide companies with
Evans, & Cowles, 1990; Frankwick, Porter, & Crosby, 2001). valuable information on when (at what stage of the buyer–
Overall, this research stream emphasizes the influence of seller relationship) call frequency is to be increased, and to
contact intensity on constructs central to building long-term whom salespeople need to call on in the buying organization.
relationships with customers, such as satisfaction (Barnes,
1997; Boles et al., 2000; Crosby et al., 1990), trust (Boles et al., 3. Research model and hypotheses
2000; Crosby et al., 1990; Doney & Cannon, 1997),
cooperation (Heide & Miner, 1992), relationship strength and In what follows, the dependent variables of the study are
closeness (Barnes, 1997), and relationship status (Frankwick defined, then their hypothesized relationship with sales call
et al., 2001). frequency is explained. Sales volume is a summary indicator of
Fig. 1 represents our conceptual model. The present study organizational outcomes for which the salesperson is at least
adds to the existing literature in three ways. First, we consider partly responsible (Churchill, Ford, Hartley, & Walker, 1985).
the effect of an increase in sales call frequency on subjective This implies that sales volume is a function of salesperson's
variables – assessed from the buyers' point of view (service behaviors, as well as additional factors not under the individual
quality, value and satisfaction) – and on objective company data salesperson's control — such as sales potential in a territory and
(sales volume). As shown in Table 1, prior research has mainly competitive actions.
Service quality can be defined as a form of an attitude that
results from the comparison of expected service levels with
perceived performance (Cronin & Taylor, 1992; Parasuraman,
Zeithaml, & Berry, 1988). In other words, customers enter a
purchase experience expecting a certain level of service. During
that purchase experience they observe actual service perfor-
mance. The customer's subjective evaluation of how well (or
poorly) that actual performance compares to expected perfor-
mance results in perceived service quality (Cronin & Taylor,
1992).
Customer value is defined by Zeithaml (1988) as a
“consumer's overall assessment of the utility of a product
based on perceptions of what is received and what is given”

5
The only exception is the remarkable effort by Frankwick et al. (2001) in a
Fig. 1. The role of sales call frequency in the buyer–seller relationship. business to consumer context.
S. Román, P.J. Martín / Industrial Marketing Management 37 (2008) 554–564 557

(p.14), and implicit in her definition is the notion of a consumer Weitz and Bradford (1999, p. 241) underscored the importance of
trade-off between a “get” and a “give” component. Although the salesperson: “as the primary link between the buying and the
Zeithaml's use of the get and give components are in terms of selling firm, salespeople have considerable influence on the
the benefits and sacrifices involved in the use of a product or buyer's perceptions of the seller's reliability and the value of the
service, it has most often been operationalized in terms of the seller's services”. In other words: “through these interactions,
trade-off between quality (benefit) and cost (price) (see Bolton salespeople influence the customer's perception of the selling firm”
& Drew, 1991). As Monroe (1990) notes, value is “the trade-off (Johnson, Barksdale, & Boles, 2001, p. 123). Next, we explain how
between the quality or benefits [consumers] perceive in a an increase in these interactions positively influences customers'
product relative to the sacrifice they perceive by paying the perceptions of service quality, value and overall satisfaction.
price” (p. 46). In industrial markets, “good service quality is formed when
Overall customer satisfaction is an overall evaluation of the supplier knows the buyers' needs and develops and adjusts
performance based on all prior experiences with a firm the problem solution so that it meets these needs” (Holmlund &
(Anderson, Fornell, & Lehman, 1994). The current study Kock, 1995, p.120). It is reasonable to expect improvements in
takes a global rather than a transaction-specific perspective. customers' perceptions of service quality under conditions of
Accordingly, customer satisfaction pertains to an affective frequent salesperson–customer contacts. This is because the
reaction to the overall postpurchase appraisal of a supplier salesperson is in a better position to: check on customer
(Babin & Griffin, 1998). satisfaction with products, suggest changes in current product
It is important to note that earlier research has shown portfolios that more closely meet their needs, inform customers
that service quality, value for money and customer satisfac- of new product availability and provide technical assistance.
tion are related, but distinct constructs (Bolton & Drew, 1991; Furthermore, frequency of contact also enhances communica-
Cronin & Taylor, 1992; Sweeney, Soutar, & Johnson, 1999). tion between parties (Mohr, Fisher, & Nevin, 1996), which
In addition, evidence from prior studies reveals that improve- implies that problems are more easily and rapidly addressed.
ment in perceptions of quality, value and satisfaction leads to Overall, this adds improved, supplemental service that custo-
favorable outcomes such as customer retention and positive mers depend on to more effectively manage their supply chain
word of mouth (e.g., Liu, Leach, & Bernhardt, 2005; Huntley, activities (Huntley, 2006). Stated formally:
2006).
H2. Perceived service quality is positively influenced by an
increase in the sales call frequency.
3.1. Direct effects
Frequent interaction is likely to foster perceived value for
Sales volume is expected to be influenced by the extent of money. The rationale is straightforward: an increase in contact
contact between the customer and the salesperson. One frequency with the customer improves customer's assessment
plausible explanation is that the salesperson can devote more of what is being received in relation to cost (Zeithaml, 1988). In
time to making the sales presentation and demonstration, other words, the customer is “getting” more because the
negotiating customer resistance and objections and using salesperson becomes more knowledgeable regarding the
closing techniques. Thus, the salesperson is likely to close customer's requirements and needs (O'Neal, 1993). This
more sales. Another supporting argument for this relationship is knowledge facilitates the tailoring or customizing of product
that the frequency with which the partners meet is a key offering(s) that fulfill the customer's needs.
indicator of the resources being committed to the relationship by As for the empirical evidence, recent findings from in-depth
the parties. Following Pillai and Sharma's (2003) study, sales interviews with industrial buyers from Ulaga (2003) revealed
call frequency can be considered as a transaction-specific asset that supplier availability as well as the need to receive
obtained by the buyer that increases the buyer's relational appropriate information in a timely manner (speed of
orientation with the supplier, and in turn, the likelihood of information) were effective ways by which the supplier could
selling more product to the buyer. Consequently, the more add value to the relationship. In a retail environment, Sweeney
salespeople invest in the relationship in terms of personal et al. (1999) found that the salesperson's advice and knowledge
contact, the more product customers are likely to purchase as perceived by the customer had a positive effect on perceived
(Wilson, 1995). value for money. Therefore, we propose the following:
As for the empirical evidence, results from Beswick and
H3. Perceived value for money is positively influenced by an
Cravens (1977) revealed that sales of one firm's high-priced
increase in the sales call frequency.
consumer goods were determined by the salesperson's
percentage of time spent in a geographic area. All the above The expectancy disconfirmation paradigm (e.g., Oliver &
leads us to propose the following: DeSarbo, 1988) argues that consumers make a comparison
between product expectations and performance that will result
H1. Sales volume is positively influenced by an increase in the
in either confirmation or disconfirmation. Customers' expecta-
sales call frequency.
tions are confirmed when product performance exactly meet
A customer's total relationship with a seller has been expectations. Positive disconfirmation occurs when product
conceptualized as having three aspects: the product, the performance exceeds prior expectations, and negative discon-
company and the salesperson (Crosby & Stephens, 1987). firmation occurs when expectations exceed performance.
558 S. Román, P.J. Martín / Industrial Marketing Management 37 (2008) 554–564

Confirmation and positive disconfirmation will be likely to result munication channels open with the customer and exhibit a
in satisfaction. Drawing on the expectation paradigm, it is commitment to the relationship (Crosby et al., 1990). In
reasonable to expect that customers have a positive disconfirma- addition, contact intensity is of crucial importance in making the
tion when the salesperson effort (e.g., number of calls) is superior customer feel that the salesperson is not merely after a short-
to that expected, thus leading to greater satisfaction. Customer term sale, but is willing to help the customer address long-term
expectations are based, amongst other things, on past experiences needs (Boles et al., 2000). That is to say, frequent contact is an
with that particular salesperson, the one who has increased the important relationship signal that indicates to the buyer that he
number of calls, and other salespeople in the industry. or she is important to the seller (Nicholson et al., 2001). The
Empirically, the frequency with which salespeople and cus- salesperson's effort in terms of increased frequency of contact
tomers interact for business reasons has been shown to be a key will be further valued in proportion to the hierarchical position
determinant of customer satisfaction (e.g., Barnes, 1997; Boles of the contact person in the buying organization.
et al., 2000; Crosby et al., 1990). Accordingly, we propose that: Findings from DelVecchio, Zemanek, McIntyre, and Claxton
(2003) suggest that the organizational role occupied by the
H4. Overall customer satisfaction is positively influenced by an
buyer plays an important part in the results obtained as a
increase in the sales call frequency.
consequence of a salesperson's actions. This is especially true in
industrial markets, where salespeople are considered as key
3.2. Moderating effects informants for the buyers, often serving as the customer's
principal diagnostician and counselor (Wotruba, 1996). In
Several studies show that “new” customers differ from “old” particular, salespeople provide sales and cost analysis as well as
ones (those who have for long been a client of their company) expertise and resources for all product designs and installations,
with respect to a number of aspects, including the way of while maintaining and improving communication and coordi-
forming satisfaction (e.g., Coulter & Coulter, 2002). For nation between the buyer and seller companies (Jolson, 1997).
example, younger buyer–seller relationships need more frequent Likewise, they become key means by which buyers acquire
interactions than older relationships, because such interactions market knowledge (Wilson, 1993).
help buyers acquire important information (Nicholson et al., Results from Qualls and Rosa (1995) reveal that functional
2001). Wilson (1971) supports this notion, as he found that areas (i.e., purchasing and corporate management) have
buyers respond favorably to the salesperson's attempts to reduce different factors that determine their satisfaction with suppliers.
uncertainty. That is to say, the more encounters the buyer has More specifically, a survey of buyers in the electronic utility
with his/her representative, the more information is accumulated industry concluded that buyers in strategic positions (such as
about that salesperson, and the more knowledge is gained about those who are at higher levels of authority) tend to take a
the product, the company and the industry. “broader perspective” when interacting with salespeople (Hayes
As knowledge is gained over the course of a relationship, the & Hartley, 1989). The broader perspective moves beyond the
initial uncertainty (and inherent risk) associated with a particular technical aspects of the product to a problem-solving approach
supplier may be reduced (Coulter & Coulter, 2002). Further- that focuses on achieving the goals of the buying organization
more, in the early stages of the relationship, frequency of (DelVecchio et al., 2003). A buyer who carries a high level of
interaction may signal the salesperson as well as its company's authority within the buying company may take this broader
interest in the buyer and the value they place on the buyer, perspective, require more interaction with the salesperson and
facilitating the achievement of positive outcomes for the seller thus be more responsive to a higher effort on the part of the
company such as higher sales and increased customer salesperson in terms of increased contact intensity. Furthermore,
satisfaction (Nicholson et al., 2001). For instance, empirical the more powerful the contact person is in the buying
findings in the service literature indicate that as the relationship organization, the more likely that he/she will compensate the
grows mature, the influence of person-related aspects (e.g., efforts of the salesperson by placing more orders. Based on the
contact intensity with the salesperson) diminishes over time, and above discussion we propose that:
the relationship is maintained on a more rational basis such as the
H6a–d. The higher the hierarchical position of the contact
offer-related characteristics (Coulter & Coulter, 2002; Gounaris
person in the buying organization, the stronger the effect of
& Venetis, 2002). Similarly, drawing on the marital literature,
an increase in sales call frequency on (a) sales volume,
recent results from Rosen-Grandon, Myers, and Hattie (2004)
(b) perceived service quality, (c) perceived value for money
reveal that the effects of some marital interaction processes (e.g.,
and (d) overall customer satisfaction.
communication and intimacy) on marital satisfaction diminish
over time. All the above leads us to propose the following:
4. Method
H5a–d. The shorter the length of the buyer–seller relationship,
the stronger the effect of an increase in sales call frequency on
4.1. Data collection and sample
(a) sales volume, (b) perceived service quality, (c) perceived
value for money and (d) overall customer satisfaction.
Prior to designing the questionnaire, in-depth interviews
As a dimension of relational selling, contact intensity reflects were conducted with twenty two industrial buyers from
an effort on the part of the salesperson to keep the com- different industries. On average, each interview lasted for 2 h.
S. Román, P.J. Martín / Industrial Marketing Management 37 (2008) 554–564 559

During these interviews, a variety of open-ended questions was Table 2


discussed to gain insight into the role of the salesperson in Sample description
maintaining and developing the supplier–customer relationship. Control group (n = 180) Survey group (n = 177)
The methodology used in this study required close and No. of Percentage No. of Percentage
continuous co-operation of at least one supplier. After several companies companies
meetings with general managers of the three major suppliers of Number of employees
industrial machinery equipment and supplies in a southeastern Less than 10 62 34.4 60 33.9
region of Spain6, one of them accepted to participate in the 10–50 69 38.3 66 37.8
More than 50–250 49 27.2 51 28.3
study. The machinery industry serves and relies on new
Activity
equipment orders from a wide range of other industry sectors. Manufacturers 11 6.5 18 10.2
Furthermore, once machinery and equipment have been sold, of machinery
customers often follow up with additional products and services Manufacturers of 15 8.3 19 10.7
such as maintenance contracts, operating cost guarantees, and metallic containers
Carpentry and 23 12.8 24 13.6
remanufactured units (Dolbeck, 2005).
locksmith businesses
At the time of the data collection, the seller was well into a Die-stamping companies 29 16.1 21 11.9
multi-year process of strategically developing and improving Metal working 43 23.9 35 19.8
relational exchanges with its customers. The seller's goal was to milling companies
become the regional leader in the development of long-term Manufacturers of 25 13.9 22 12.4
metallic structures
relational exchanges with its customers. The seller was offered a
Mechanical industry 21 11.7 28 15.8
summary report of the findings as well as customized data in general
analyses in return for its invaluable co-operation. Seller's total Automobile-related 13 7.2 10 5.6
sales volume for 2003 was €18.9 million, and during that industry
period had 42 employees. The sales department was comprised
of the sales manager, one supervisor and twelve salespeople.
Three salespeople (salesperson A, B and C) of similar Data were split in two halves to provide a control group and
characteristics in terms of age, education, experience, perfor- a survey group (for a similar procedure see Frankwick et al.,
mance (e.g., closing ratios) and territory were selected from the 2001). In this step, we aimed to create two similar groups of
seller company. Next, the supplier firm provided us with a list companies7 in terms of their size, activity and length of
comprising of the mailing address, number of employees, length relationship with the supplier (see Table 2). For example, 38.3%
of relationship, activity and contact person of all the customers of the companies in the control group have between 10 to 50
assigned to each salesperson (295, 276 and 283 respectively). employees. This percentage goes down to 37.8% in the survey
On average, each salesperson calls on approximately 12 group. Similarly, length of relationship was equal or greater than
customers a day. We randomly selected 140 customers per 15 years in 25.5% of the control group companies, and 23.2% in
salesperson (making a total of 420 customers). These customers the survey group. Respondents represented a wide range of
were called on once a month. Pre-notification postcards were industries in both groups. Over the two-year period since the
sent to each firm. Brief questionnaires were sent to the key first survey took place, call frequency remained the same in the
contact person in each organization (either the general manager control group (once a month), whereas it was increased to two a
or the purchasing manager), along with a postage-paid envelope month in the survey group8. In order to compensate for the
and a cover letter from the seller management introducing the higher workload of the three salespeople (who increased their
study and encouraging participation. A three-euro incentive was average number of sales calls per day from 12 to 15), an
attached to each survey. In addition, buyers were informed that employee from the administration department was assigned to
three premium discounts of 1500, 1000 and 500 euros, to be work on their administrative tasks for 2 h each day.
redeemed on future purchases, will be drawn at random from
respondents to both questionnaires. Each buyer received a
reminder telephone call two weeks after the first survey was 7
The company wanted to keep selling expenses to a minimum, so they
mailed. Completed questionnaires were received from 360 encouraged the authors to assign to the survey group those customers that
buyers, giving a response rate of 85.71% in the first survey. allowed the salespeople to visit them with a minimum expenditure of travel
Non-response bias was assessed by comparing early and late time. Salespeople were calling on existing customers. Consequently, several of
respondents (Armstrong & Overton, 1977). No significant dif- these calls were aimed to check on customer satisfaction, and did not take more
than 20 min, on average. Furthermore, the average driving distance to
ferences were found on any of the constructs (p N .10). The high customers was 12.5 miles. Therefore, there were no lodging expenses. In such a
response rate can be explained in several ways: the incentive context, salespeople were making an average of 3420 calls a year (after
provided, the brief length of the questionnaire, the letter from the allowing for vacation time, sickness and other emergencies). The annual cost of
supplier management accompanying the questionnaire, and the supporting each of these three salespeople in the field ranged from €36,977 to
follow-up calls (Larson & Chow, 2003). €40,257. The company had a margin of 45% on sales.
8
Every four months, the authors had a meeting with the management of the
cooperating company to check on a sample of call reports. This was
6
The authors decided to develop the research in the same region where they implemented to confirm that salespeople were actually doubling their sales
lived based on convenience reasons. calls consistently over time in the survey group.
560 S. Román, P.J. Martín / Industrial Marketing Management 37 (2008) 554–564

Twenty four months later a second survey was conducted to Table 3


examine changes in the supplier–customer relationships in Construct measurement summary: means, SD and scale reliability (α)
terms of sales volume, perceived service quality, perceived Item description Mean values (SD)
value for money and overall customer satisfaction. This survey Control group Survey group
wave yielded a 99.16% response rate. The final sample for data (n = 180) (n = 177)
analysis is comprised of 180 buyers from the control group, and Year t Year t + 2 Year t Year t + 2
1779 from the survey group. Sales volume (in euros) 20,148 20,490 22,968 24,278
It is important to note that purchasing relationships between (19,140) (19,670) (24,458) (24,892)
small and medium sized (SMEs)10 industrial suppliers and
manufacturers provided the setting for this study. The economic Perceived service quality (αt = .90; αt + 2 = .92)
impact of small businesses is about equal that of large This firm gives me 2.23 2.67 2.31 4.15
individual attention (1.14) (1.32) (.99) (1.52)
businesses. For instance, in the United States they employ This firm's employees 3.67 3.62 3.76 4.43
50.1% of the private work force and represent 99.7% of all provide me with (1.47) (1.27) (1.38) (1.45)
employers (United States Small Business Administration, technical assistance
2006). These companies are able to capitalize on customer This firm's employees 3.64 3.10 3.59 3.65
are easy to access (1.38) (1.07) (1.23) (1.25)
closeness and flexibility to satisfy rapidly changing customer
demands, yet they face scare resources (Hausman, 2005). Perceived value for money
Therefore, since sales calls are an expensive resource with finite The products offered by this 3.44 3.47 3.32 3.68
supply, the study of sales effort allocation in small companies company have a good (1.19) (.96) (1.24) (1.07)–
seems especially relevant. Furthermore, as shown in Table 1, quality/price ratio as
most of the research on contact intensity has been developed in compared to the
competition
the context of large companies selling to large companies.
Overall customer satisfaction (αt = .78; αt + 2 = .80)
4.2. Measures Overall, I am very satisfied 3.55 3.54 3.66 4.34
with this supplier (1.27) (1.25) (1.20) (1.23)
In this study, sales call frequency refers to the number of Overall, I am very satisfied 2.46 2.54 2.41 3.31
with this supplier as (1.20) (1.24) (1.05) (1.22)
salesperson's face-to-face communication with the customer within compared to the
a month. As for the dependent measures, sales volume was pro- competition
vided to us from the supplier company during the two-year period.
The remaining scales consisted of seven-point agree–
disagree Likert questions (items and summary statistics are judgments. Overall customer satisfaction was measured by two
provided in Table 3). It has been generally recognized that items based on Homburg and Rudolph (2001). Perceived value
measurement of service quality should be conducted taking into for money was approached by a single item adapted from Bolton
account the aspects that customers consider most relevant and Drew (1991). There is precedence in the academic literature
(Zeithaml, Parasuraman, & Berry, 1990). For example, findings of the use of single-item measures. For example, customer value
from Wetzels, De Ruyter, Lemmnick, and Koelemeijer (1995) is measured as a single item in Bolton and Drew (1991), Rust,
reveal that “the very concept of customer service may differ by Danaher, and Varki (2000) and Varki and Colgate (2001).
market segment. What may be considered important by one As shown in Table 3, reliability of the multi-item measures
customer group may be regarded as less important by another” (perceived service quality and overall customer satisfaction)
(p. 57). Holmlund and Kock (1995, p. 121) further argued that was confirmed with coefficient alpha higher than the recom-
“it is obviously difficult to generalize buyer perceived service mended level of .7 in both surveys (Nunnally, 1978). The multi-
quality as it is embedded in a specific context”. Accordingly, item scales were further evaluated through confirmatory factor
buyer's perception of service quality was measured by three analysis using the maximum likelihood procedure in LISREL
items based on the B-to-B literature review on service quality 8.30. Following the procedures suggested by Anderson and
(e.g., Durvasula, Lysonski, & Mehta, 1999; Kong & Mayo, Gerbing (1988), the multi-item scales showed acceptable
1993; Wisner & Stanley, 1999) and on the results of the in-depth convergent and discriminant validity in both surveys11.
interviews with industrial buyers.
A quick look at Table 3 will reveal that value and satisfaction 5. Results
are measured by overall questions. In this sense, Finn and
Kayande (1997) have argued in favor of overall measures as Hypotheses were tested using analysis of variance (ANOVA)
being reliable as respondents are better able to make aggregate for each of the dependent variables: sales volume, perceived
9 11
One buyer stopped dealing with the seller, and two buyers went out of Convergent validity was assessed by verifying the significance of the t values
business. General managers and purchasing managers remained the same over associated with the parameter estimates. All t values were positive and significant
the two years. Job stability in management positions is very common in (p b .01). Discriminant validity was tested by comparing the average variance
Spanish SMEs (Aragón & Sánchez, 2005). extracted by each construct to the shared variance between both constructs
10
According to the European Commission (96/280/EC) small companies employ (perceived service quality and customer satisfaction). For each comparison, the
up to 50 employees, and medium companies have fewer than 250 employees. explained variance exceeded shared variance in both surveys.
S. Román, P.J. Martín / Industrial Marketing Management 37 (2008) 554–564 561

Table 4
Results of the ANOVA: mean values⁎
Dependent Variables Categorical variables
Survey group Control group
Length of relationship Contact person Length of relationship Contact person
Less than Equal or greater Management Purchasing Total Less than Equal or greater Management Purchasing Total
3 years than 3 years 3 years than 3 years
Sales volume 12.5 8.2 14.8 6.7 10.7 2.5 2.4 2.4 2.4 2.4
Per. service quality 24.2 5.6 19.2 10.7 14.9 − .4 − 2.6 −1.5 − 1.5 − 1.5
Per. value for money 9.8 5.1 13.2 1.6 7.4 4.7 − .5 3 1 2.0
Overall C. satisfaction 20 8.5 20.3 8.3 14.3 .9 .7 1.7 0 .8
⁎Mean values refer to the variation in percentage terms of the score of each dependent variable in the two-year period.

service quality, perceived value for money and overall customer is equal or greater than 3 years) to 20 (when the length of the
satisfaction. For data analysis, the items of the multi-item scales relationship is less than 3 years); as opposed to 0.7 and .9
were averaged to form composite scores in both surveys. Then respectively in the control group. Length of relationship did not
we calculated the variation in scores for the two-year period for have a moderating role when the dependent variable is
all dependent variables. perceived value for money (F = .01, p = .9).
Mean levels of the dependent variables were tested across the As for the interaction between group and contact person, in
different levels of the categorical independent variables: group all cases it was significant providing empirical support for H6a–
(survey and control), salesperson (A, B and C), length of d (F = 14.78, p =.00; F = 2.75, p = .09; F = 4.78, p = .02;
relationship (less than 3 years, equal or greater than 3 years12 F = 4.63, p = .03 respectively). Mean values of the dependent
and contact person (general management or purchasing variables for each of the categorical variables are shown in
department). First of all, it is worth noting that in neither case Table 4. These results correspond to the aggregated data of the
the variable salesperson had a significant effect on the three salespeople. Mean values for each of the individual
dependent variables. Further, since there was no significant salesperson replicated the findings obtained in the aggregated
two-way interaction of salesperson and the group, results were data.
aggregated across the three salespeople.
Findings revealed that sales volume (F = 57.11, p = .00), 6. Discussion and implications
perceived service quality (F = 34.09, p = .00), perceived value
for money (F = 5.42, p = .02) and overall customer satisfaction Sales managers have long tried to understand the determi-
(F = 29.43, p = .00), were significantly higher in the survey nants of key outcomes for the company such as sales volume
group than in the control group. Consequently, the main effects and customer satisfaction. Sales calls, or time that the sales force
of the analysis of variance confirm H1, H2, H3 and H4 is capable of devoting to customers, is one of the most valuable
respectively. For example, overall customer satisfaction in- and expensive resources available to industrial sales managers.
creased by 14.3% in the survey group as opposed to .8% in the The main purpose of the present research was to look at the
control group over the two-year period (see Table 4). Cohen's relationship between an increase in sales call frequency and
(1988) measure of effect size revealed that the influence of an some important outcomes in the buyer–seller relationship. In
increase in call frequency on sales volume was strong (d = .68). order to achieve such a goal, longitudinal data were gathered
The effect size was medium when the dependent variables were from 357 buyers of one industrial supplier. Data were split in
service quality and overall satisfaction (d = .57 and d = .50 two halves to provide a control group and a survey group. Over
respectively), and small when the dependent variable was value a two-year period, sales call frequency was not modified in the
for money (d = .25). control group (once a month), whereas salespeople increased to
Further, to test for the moderating effects, two interactions two a month the number of calls to the companies in the survey
between group and length of relationship and group and con- group.
tact person were also calculated for each of the dependent Our results indicate that an increase in sales call frequency
variables. Length of relationship moderated the influence of an has a positive effect in sales volume, perceived service quality,
increase in call frequency on sales volume (F = 2.76, p = .09), perceived value for money and overall customer satisfaction.
perceived service quality (F = 8.53, p = .00), and customer Interestingly, the stronger effect was on sales volume. This is
satisfaction (F = 5.29, p = .02). These results confirm H5a–d. particularly relevant for practice and research. While several
For instance, in the survey group (where the frequency of studies have made an attempt to explain the consequences of
contact was increased), the increase in customer satisfaction in contact intensity few, if any, have paid explicit attention to
percentage terms goes from 8.5 (when the length of relationship objective and concrete company outcomes, such as sales
volume. For managers, this result provides them assurance
12
In a business-to-business context, Liu et al. (2005, p. 565) distinguished that increasing sales call frequency translates into higher level
between short (less than three years) and long relationships (three years or more). of sales.
562 S. Román, P.J. Martín / Industrial Marketing Management 37 (2008) 554–564

In addition, our findings add to the existing literature by be major problems of sales force management. It may be both
demonstrating the positive effects of frequency of interaction practical and desirable to stimulate salespeople to reallocate
through the use of longitudinal methods. As discussed earlier, time among various work-related activities to achieve a more
longitudinal data provide stronger support for causal relation- productive mix of activities, and in turn, to achieve better
ships than can be inferred from analysis of cross-sectional data results. For instance, it can be possible that the salesperson's
(Menard, 1991). behavior (i.e., customer service support, frequency of sales
Another contribution of the study is related to the analysis of calls) may be worse than what their customers expected.
the moderating effects. Our findings indicate that the impact of Therefore, the sales manager needs to know and understand
interpersonal interactions on organizational outcomes is time and customer and industry expectations. This data can be obtained
context-dependent. In particular, over time, as customers become from expert salespeople or market research.
more experienced and confident in evaluating supplier's offer- The salesperson monitoring and compensation systems can
ings, they may change their evaluation strategies, weighting prior be designed to ensure that industry expectations (in terms of
opinions more heavily than new information. Thus, customers frequency of sales calls) are met. For example, the number of
who have long-standing relationships with suppliers may need sales calls made to each customer can be a specific goal which
fewer interactions with the salespeople to maintain their levels of can be monitored and rewarded. Managers of small companies
satisfaction. Accordingly, our results suggest that as relationships should pay special attention to this issue. Prior research has
become longer, investments in certain resources (increasing sales shown that customers of small companies, as compared to large
call frequency) may have diminishing marginal returns. companies, demand more frequent contact from salespeople
Nevertheless, contrary to expectations, relationship duration (Gilmore, Carson, O'Donnell, & Cummins, 1999).
does not seem to moderate the effect of an increase of call In addition, our findings show that increasing salesperson's
frequency on perceived value for money. The measurement of contact with customers improves the buyer–seller relationship in
perceived value for money may explain this result. This terms of sales volume, perceived service quality, perceived value
measure specifically referred to the products offered by the for money and overall satisfaction. This is especially relevant for
supplier, whereas perceived service quality and overall supplier companies since buyers frequently face with multiple
satisfaction were more related to the aspects of the interpersonal competing suppliers whose offerings are similar to each other,
relationship. In this vein, our results are somewhat consistent and in today's highly competitive markets, traditional forms of
with Egger, Ulaga, and Schultz (2006), who found that product differentiation are declining rapidly (Preis, 2003). In this
customers perceived a stronger need for personal interaction context, offering superior value through personal interaction
and service support during the build-up phase, as opposed to the becomes a promising means of differentiation.
maturity and decline phase of business relationships, but cus- We encourage sales managers to maximize the time their
tomer's perceptions of product quality (as compared to the salespeople spend calling on customers. For example, this can be
second supplier) were independent from the life cycle phase. implemented by providing salespeople with company support to
Finally, consistent with recent work by DelVecchio et al. carry out the office work. The salesperson, then, may become
(2003), it seems that at higher levels of buying authority, buyers the leader of a team in order to better serve customer needs.
consider more issues and criteria than just product attributes and One common structure makes the salesperson responsible for
prices. Our findings suggest that buyers at higher levels of working with the entire selling team to manage the customer
authority are more responsive to an increase in sales call fre- relationship.
quency13. A high level of contact intensity allows the sales- One of the assumptions of this study is that buyers prefer to
person to adopt a customer-focused approach, that requires be called on and be closely monitored. This seems to be the case
more time to be implemented, as opposed to a product-focused in the context of the current research: a small supplier of
approach. Our results indicate that the investment made by the industrial machinery equipment selling to local customers that
salesperson is worthwhile when the buyer occupies an in- demand after-sales service. However, at a certain level, “number
fluential role in the buying organization. of calls becomes excessive, and the salesperson becomes
nuisance to the account” (Churchill, Ford, Walker, Johnston, &
6.1. Managerial implications Tanner, 1997, p.206). This is especially true for “intrinsic value
customers”. For these customers, “product quality, price, and
The implications for managers are straightforward. Sales availability are the most important determinants of vendor
managers consider poor use of sales time and poor planning to choice” (Beverland, 2001, p.207). In this situation, a strategy
that aims to build a closer relationship with these customers
13
In a number of situations, as you go up the hierarchy, managers would like
through an increase in contact frequency could be harmful as
to see fewer salespeople since this task may be delegated to others lower in the well as costly. Therefore, the type of customer, the attractive-
hierarchy. This might be especially true in large corporations. Yet, we have to ness of the account to the firm (the account potential), and the
take into account the context of the current study. In small companies there are likely difficulties to be encountered in managing the account
not that many management positions. Moreover, it is quite common that the need to be determined on an account-by-account basis.
sales manager simply does not exist, and the general manager acts as the sales
manager (Román et al., 2002). Consequently, the general manager is more Finally, when contacting customers our results suggest a
aware of the effort that implies increasing sales call frequency, and more willing sequential use of various forms of communication, with more
to compensate such effort in terms of higher sales, for example. face-to-face sessions occurring early in the relationship;
S. Román, P.J. Martín / Industrial Marketing Management 37 (2008) 554–564 563

whereas telephone, email or written communications may be Barnes, J. G. (1997). Closeness, strength, and satisfaction: Examining the nature
increased (in detriment of face-to-face contacts) in longer of relationships between providers of financial services and their retail
customers. Psychology and Marketing, 14(8), 765−790.
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mended the higher the buyer's authority level. sales force management. Journal of Marketing Research, 14(2), 135−144.
Beverland, M. (2001). Contextual influences and the adoption and practice of
6.2. Limitations and directions for future research relationship selling in a business-to-business setting: An exploratory study.
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Boles, J. S., Brashear, T., Bellenger, D., & Barksdale Jr., H. (2000). Relationship
This research represents an initial step in the longitudinal selling behaviors: Antecedents and relationship with performance. Journal
analysis of the influence of an increased sales call frequency on of Business & Industrial Marketing, 15(2/3), 141−153.
key outcomes for the seller company. Data were gathered from Bolton, R. N., & Drew, J. H. (1991). A multistage model of customers'
purchasing relationships between small and medium sized assessments of service quality and value. Journal of Consumer Research, 17
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Cannon, J. P., & Homburg, C. (2001). Buyer–supplier relationships and
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Ruiz, 2005), adaptive selling (e.g., Spiro & Weitz, 1990), provider: The moderating role of length of relationship. Journal of Services
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Retailing, 64(1), 12−40. Murcia (Spain). His articles have appeared in the Journal of Business Research,
Parsons, L. J., & Abeele, P. V. (1981). Analysis of sales call effectiveness. International Marketing Review, Journal of Business Ethics, International
Journal of Marketing Research, 18(1), 107−113. Journal of Market Research, European Journal of Marketing and Journal of
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orientation turn into transaction orientation? Industrial Marketing Manage- and sales management, international marketing and business ethics.
ment, 32(8), 643−651.
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decisions. Journal of Supply Chain Management, 39(3), 30−38. Pedro J. Martín is a doctoral student in marketing at the University of Murcia
Qualls, W. J., & Rosa, J. A. (1995). Assessing industrial buyers' perceptions of (Spain). He has occupied sales and management positions in several
quality and their effects on satisfaction. Industrial Marketing Management, companies. His research interests are focused on industrial marketing as well
24(5), 359−368. as personal selling and sales management.

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