Value-based selling: a multi-component exploration

Abstract

Purpose This paper aims to investigate factors that affect the use of value-based selling and the subsequent influences on salespeople’s sales performance. Design/methodology/approach Industrial salespeople from five steel manufacturers were surveyed. Scales measure three components of value-based selling: comprehension, crafting and confirmation. Partial least squares path analysis tested the conceptual model. Findings Salespeople’s learning orientation has the greatest impact on the use of value-based selling. Managerial support exerts a positive effect on crafting. Salespeople’s experience has a positive impact on comprehension and confirmation. The implementation of value-based selling has a positive effect on sales performance. Research limitations/implications The research is cross-sectional, with a small sample size (n = 60). The data were collected from a single source (i.e. salespeople). Practical implications The results suggest that value-based selling is a multi-component sales process that requires balancing managerial actions among individual and organizational factors. Originality/value This paper presents a broad evaluation of measures and assessments of value-based selling in business-to-business sales settings. The findings provide new elaborations on the theoretical and practical implications of value-based selling and reveal which individual and organizational factors affect the usage of value-based selling.

Successful implementation of value-based selling: a value co-creation and dynamic capabilities perspective

“…Other scholars, such as Töytäri and Rajala (2015), define VBS as “a sales approach that builds on identification, quantification, communication, and verification of customer value” (p. 101). Kienzler et al (2018) consider VBS as “an on-going, iterative process and firms may use all or only parts of this process” (p. 360) and take “understanding, making, confirming” as the dimension of VBS.…”

“…Table 1 shows the current main research questions, findings and methods of VBS. The table and related literature indicate that current academic studies focus on the influencing factors at the individual level of VBS, such as customer orientation (Terho et al , 2015), learning orientation (Terho et al , 2017; Kienzler et al , 2018), sales personnel’s customer and internal network capabilities (Terho et al , 2017), innovativeness (Ferdinand and Wahyuningsih, 2018), sales experience (Kienzler et al , 2018) and promotion focus and prevention focus (Mullins et al , 2019). In addition, Töytäri and Rajala (2015) summarize three core competencies required by VBS: planning (target segment and stakeholder group identification, value analysis, value proposition development, sales tools preparation), implementation (customer selection and stakeholder identification, trust and credibility building, value proposition communication, shared solution vision building, value quantification, value sharing and profitability management) and leverage (value verification, development of a case repository).…”

“…First, front-line sales personnel are the actual implementers of the VBS. Previous studies, such as Terho et al (2015, 2017), Kienzler et al (2018) and Mullins et al (2019), identified several individual-level favorable factors. However, the current research on this aspect is still relatively limited.…”

“…international business machines corporation(IBM), Rolls-Royce, Siemens and Ericsson) provide customized “solutions” (Tuli et al , 2007; Nordin and Kowalkowski, 2010) to customers through “servitization” (Baines et al , 2008) or “service injection” (Kowalkowski et al , 2012) to enhance the value creation potential. Providers’ focusing on customer value reflect their positive response to customer satisfaction, competitive advantage and company performance (Kienzler et al , 2018). The new solution model requires an appropriate sales approach to match this publicity.…”

“…A dozen articles published in authoritative research journals, such as Industrial Marketing Management and Journal of Business and Industrial Marketing , have conducted research on the basic concept and connotation (Terho et al , 2012), several key processes (Töytäri et al , 2011), organizational ability (Töytäri and Rajala, 2015) and antecedents (Terho et al , 2015, 2017; Kienzler et al , 2018; Mullins et al , 2019) of VBS and its impact on sales performance (Terho et al , 2015). After reviewing the existing research, we find that some points are worth considering for further discussion and investigation.…”