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Dissertation Report
ON
The Driver influencing the relationship
between Sales Representative and Customer
and their impact on Sales
For the partial fulfillment of the course
InPost Graduate Diploma in Business Management.
(Session: 2007-2009)
Submitted By:-
Gopal Singh
Roll No-27119
Under The Guidance of
Ms. Sarika Tomar
NIILM- CENTRE FOR MANAGEMENT STUDIES
B-II/66, M.C.I.E., Sher Shah Suri Marg, New Delhi- 110044.
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ACKNOWLEDGEMENT
Success is not a destination, but a journey
The above saying is heard very often but I realized it even better during
my Dissertation research project. Any accomplishment requires the efforts of
many people and this work is no different. I have been fortunate enough to get the
help and guidance from many people. It is a pleasure to acknowledge them, though
it is still inadequate appreciation for their contribution.
I would not have completed this journey without the help, guidance and
support of certain people who acted as guides, friends and torchbearers along the
way.
I would like to express my deep gratitude and sincere thanks to my faculty
guide Ms. Sarika Tomar. for their keen support and valuable guidance. The
project could not be complete without their support and guidance. Thanking them
is only a small gesture for the generosity shown.
I am also thankful to all my friends, my family and the sales people and
distributor of various organization like; Coca-cola, Pepsi, Nestle, Reckitt
Benckiser, P&G, HUL, Camalin, Dabur, Mother Dairy, Amul, etc are the name of
few, who cooperated with me at every stage of the project and helped me a lot.
They acted as a continuous source of inspiration and motivated me throughout
the duration of the project helping me a lot in completing this project.
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PREFACE
P.G.D.B.M. is the stepping stone to management career. In order to achieve practical,
positive and concrete result, the classroom learning has to be effectively supplemented to
relation of the situation existing outside the classroom for developing healthy managerial and
administrative skills in a potential manager. It is necessary that the theoretical knowledge
must be supplemented with exposure to the real environment.
The report comprises all the important aspects of the study and all the aspects have been
presented under different headings in the forthcoming pages. An attempt had been made to
present a report covering different aspects of the Research Study.
I would like to express my sincere thanks to all the Respondent, Distributor and Sales people
who helped in my endeavors during the training.
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EXECUTIVE SUMMARY
Companies are continually trying to create value from their brands by increasing their
margins and/or selling more of their products. Taking cost out of the value chain gives the
company a competitive advantage, but this advantage is short lived as competitors also
reduce costs. (Mostly in FMCG companies) Differentiating a product through enhanced
features and benefits also provides a competitive advantage, but is also subject to imitation
by rivals. As competition increases, companies are looking for new avenues to differentiate
themselves. Relationship marketing has, as a result, increased its prevalence as a competitive
tool to provide that point of difference.
The primary objective of the study to investigated the factors that influence the relationships
between a sales representative and Distributor/Customer. The project was undertaken in Delhi
and NCR region due to various constraints.
A proper plan was devised as to how the market will be approached and the acceptability
level would be found out. For that, Sales people, Distributors, Customer responses were
collected through a simple questionnaire. All the findings of the project are mostly based on
primary data collection
This research Blue-print was developed after studying literature as it pertained to customer
relationship marketing. From the literature the foundation blocks in developing buyer-seller
relationships were studied. The research methodology tested the impact of certain factors on
the ability to build a relationship between buyer and seller and then tested the validity ofthose answers using underlying determinants of a relationship.
These determinants included the ability to communicate, the ability to trust, the degree of
loyalty and the ability to influence a customer.
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Table of contents
Project Completion Certificate2
Acknowledgment
3
Preface.4
Executive
Summary.5
CHAPTER 1: INTRODUCTION7
1.1: Purpose, Scope & Limitation...7
1.2: Benefits Gained through the project ...8
CHAPTER 2: RESEARCH PROJECT9
2.1: Literature Review ....9
2.2: Research Objective.....12
2.3: Research Problem...12
2.4. Research Design & Methodology..17
2.4: Questionnaire Designing....17
3.5: Sampling and Data Collection.......17
CHAPTER 4: DATA ANALYSIS AND RESULTS.18
4.1: Data Analysis..18
4.2: Research Result..18
CHAPTER 6: 48
6.1: BIBLIOGRAPHY48
6.2: ANNEXURE54
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CHAPTER 1: INTRODUCTION
1.1: Purpose, Scope & Limitations:
Purpose: This project is titled Study of preparatory educational segments for
exploring the Possibility of this segment as an avenue of growth for HT in Delhi.
This project is undertaken to find out the critical factor of success factor of a sales
representative to maintain a relationship with the customer. There are a number ofcompanies whose sales representative fail to maintain the relationship with their
customer. Hence a effort has been made to identify the critical success factor of a
representative which led to healthy relationship with their customer. I tried to know the
effect of sales representatives age, gender, educational qualification, language, place
of living in building the relationship with customer. So the companies can understand
the qualities of ultimate sales person and device them accordingly.
Scope: The whole project is divided into
Literature review and Hypothesis formation
Survey, Feedback and Data analysis
It is suggested that positive relationships have an impact on the sales representatives ability
to influence the store owner to activate certain in-store drivers which will increase the sales
volume of products through an outlet. In-store drivers have been defined as the availability of
a product through listing, the amount of forward share allocated to the product and the price
of the product. If the profile of a sales representative relative to that of a customer, has an
impact on the strength of the relationship, companies could match sales representatives to
customers based on their respective profiles. This matching would have a positive benefit
for the sales representative and his/her company.
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Understanding what factors can improve or inhibit a relationship provides important insights
into how management can influence a competitive advantage in customer relationship
marketing.
1.2:Limitation of the study:
The project is limited in scope due to restrictions over the length of questionnaire.
The definition of the population may be restricted due to resource constraints or the
availability of adequate sampling frames. Thus, the results can only be generalizedwith confidence to the group from whom the sample was taken.
1.2: Benefits gained through the project
Practical Experience: The most obvious benefit gained from conducting this project is
the practical experience, I acquired. I personally found that it was quite hard to
truly understand the concepts and ideas taught in the classroom until they arerequired to apply them in an actual situation. Such a fundamental concept as market
segmentation takes on a new meaning when I were required to carefully identify,
define, and measure the characteristics of some important customer group(s).
Satisfaction of Producing a Product: I found considerable satisfaction in doing
the marketing research project. This exercise involved me from start to finish in
solving a practical problem. At that point, it was quite hard for me to imagine
what the final product would be like. However, at the end of the term I was felling
very proud to be a part of this project.
Application of Skills: This project required to apply a variety of skills. Some of these
skills were entirely new, such as gathering information through direct and telephonic
interviews with management people of various preparatory coaching institutes. Other
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skills that I began to acquire in classes but had not applied to marketing
problems, for example, preparing statistical models in MS EXCEL.
2.1:LITERATURE REVIEW:
Defining a relationship, relationship marketing and customer relationship marketing.
A relationship is composed of a series of episodes between dyadic parties over time
Marketing in relational terms means to establish, maintain and enhance relationships with
customers and other partners, at a profit so that the objectives of parties involved are met.
This is achieved by mutual exchange. Relationship marketing (RM) is used to describe the
philosophy and orientation towards customer retention and is an important trend in
marketing. It is based on the organizations effort to develop long-term, mutual beneficial
links with customers. CRM philosophy is based on the concept of building long-term quality
relationships with customers who will provide value to the organization. The Relationship
marketing perspective is based on the notion that on top of value of products and/or services
that are exchanged, the existence of a relationship between two parties creates additional
value for the customer and also for the suppliers or service provider
Customer relationship marketing (CRM) is regarded as the practical implementation of
relationship marketing and is the core business strategy that integrates internal processes and
functions, and external networks, to create and deliver value to targeted customers at a profit.
It is grounded on high-quality customer data and enabled IT. The general aim of any CRMstrategy is to develop more profitable relationships with customers. Some organizations do
this by taking cost out of the relationship and others do this by increasing the revenue earned
from a customer relationship. It was found that customers value relationships with trusted
suppliers. As a result of the association of value with relationships it is important for
suppliers to put effort into maintaining and constantly improving these relationships.
Boles, Hiram, Barksdale and Johnson identified a five-stage relationship evolution process.
These stages are pre-relationship stage, early stage, development stage, long term stage and
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the final stage. Within these stages, there are certain identified categories of perceptions that
influence the future development of a relationship. Various researches identify one of these
categories as being the distance because of differences in social, geographic and cultural
backgrounds. In the early stage of development there is a need to reduce the social distance
between buyer and seller if a long-term sustainable relationship is to develop.
The sales person is the point of contact between the selling organization and the company. It
therefore becomes important to understand what factors will influence the strength of that
relationship and what the entry-level factors are that need to be considered prior to this stage.
The relationship gap between a buyer and a seller closes as knowledge of each firm becomes
known and as personal relationships develop between individuals.
There are different stages in building a relationship. These stages are represented in the
loyalty ladder depicted in Figure 1.
Figure 1: The customer ladder of loyaltySource: Adapted from Payne (2006:112)
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The ultimate goal is to reach the top of the ladder and develop a partner relationship, but
Payne (2006: 112) calls out the need to understand that it becomes more difficult to build a
relationship the higher one climbs up the ladder.
Key characteristics of relationships Satisfaction, trust and commitment are the core values in
relationship marketing. Satisfaction is a strong predictor for behavioral outcomes such as
repurchasing intentions, word-of-mouth or loyalty. Trust is one parties belief that its needs
will be fulfilled in the future by actions taken by the other party and according to the
commitment-trust theory by Morgan and Hunt. Trust is the key mediating variable that is
central to any relational exchange.
Commitment is defined by as an enduring desire to maintain a valued relationship and
committed relationship partners are unlikely to switch even if a competing supplier
outperforms the incumbents value offer. Parties identify commitment among exchange
partners as a key to achieving valuable outcomes for themselves and they endeavor to
develop and maintain this precious attribute in their relationship. Commitment is a
motivational force driving the individual towards an action or behavior and in marketing,
commitment to a relationship is widely accepted as a behavioral measure of performance.
Parties seek an on-going profitable relationship. This study examines the impact that age,
gender, education and culture have on the ability of a sales representative to build a
relationship with a customer. Culture is broken down into four categories and these
categories examined race, language, religion and area of residence of sales representative
relative to a customer and the impact these attributes have on the ability to build a
relationship.
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2.2The research objective:
The primary research objective was to determine if a positive relationship has an impact on
the in-store drivers and ultimately the sales volume in an outlet.
2.3The research problem:
A company can produce a product, create the demand for it, but fail by not having that
product available for the shopper to purchase. The focus of this article is to examine the
factors which influence the relationship between a sales representative and a customer, and
the impact of the relationship on the sales within an outlet. A supplier can determine who to
send to a customer. If a particular profile of sales representative increases the sales volume
within an outlet it would be in the interests of the supplier to ensure that the right person
with the most appropriate profile is sent to that customer.
The study was developed to solve the following four research problems:
The first related to whether there is a relationship between the profile of a sales
representative and that of the customer (linked to hypotheses 1 30).
The second to determine whether the strength of a relationship will influence the
ability to affect the in store drivers (linked to hypotheses 31-33).
The third to determine whether these in-store drivers affect sales volume (linked to
hypothesis 34-35).
The profile of a sales representative relative to the customer was defined by using the
determinants of gender age, education and culture.
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H8: The ability to communicate with customer is same irrespective of gender.
H9: There is a significant relationship between sales representatives educational
qualifications and their ability to communicate with a customer.
H10: The ability to communicate with customer is same irrespective of language.
H11: The ability to communicate with customer is same irrespective of place of living.
.
H12: The ability to communicate with customer is same irrespective of race.
(H13 H18)- To Test The Ability Of Trust A Customer
H13: There is a significant relationship between sales representative age and their ability to
trust a customer.
H14: The ability to trust a customer is same irrespective of gender.
H15: There is a significant relationship between sales representatives educational
qualifications and their ability to trust a customer.
H16: The ability to trust a customer is same irrespective of language.
H17: The ability to trust a customer is same irrespective of place of living.
.
H18: The ability to trust a customer is same irrespective of race.
(H19 H24)- To Test The Degree Of Loyalty And
H19: There is a significant relationship between sales representative age and their ability to
build loyalty with a customer.
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H20: The ability to build loyalty with a customer is same irrespective of gender.
H21: There is a significant relationship between sales representatives educational
qualifications and their ability to build loyalty with a customer.
H22: The ability to build loyalty with a customer is same irrespective of language.
H23: The ability to build loyalty with a customer is same irrespective of place of living.
.
H24: The ability to build loyalty with a customer is same irrespective of race.
(H25 H30)- To Test The Ability To Influence A Customer
H25: There is a significant relationship between sales representative age and their ability to
influence a customer.
H26: The ability to influence a customer is same irrespective of gender.
H27: There is a significant relationship between sales representatives educational
qualifications and their ability to influence a customer.
H28: The ability to influence a customer is same irrespective of language.
H29: The ability to influence a customer is same irrespective of place of living.
.
H30: The ability to influence a customer is same irrespective of race.
Hypotheses Linked To Research Problem Two:
Hypotheses 31 33 were formulated to test the relationship between the strength of a
relationship and the impact this relationship has on the in-store drivers. It was assumed that
there will be a positive relationship between the strength of the customer and sales
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representatives relationship and the ability of the sales representative to affect the listing of
products, the placement of cooling equipment and displays and the compliance to
recommended selling prices.
H31: The stronger the relationship a sales representative has with a customer the easier it is
to list a new product.
H32: The stronger the relationship that a sales representative has with a customer the easier it
is to get a display built in the outlet.
H33: The stronger the relationship that a sales representative has with a customer the easier it
is to get price compliance in an outlet.
Hypotheses Linked To Research Problem Three:
Hypotheses 34 35 were formulated to test the sales representatives belief that the strength
of the relationship that he or she has with the customer will influence his or her ability to list,
increase forward inventory and get price compliance within an outlet.
H34: If you increase the amount of forward share in an outlet by building displays and
increasing the points of interruption you will increase the volume in that outlet.
H35: If you get price compliance in an outlet you will increase the volume within that outlet.
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2.5: Research methodology:
Questionnaire design:
A questionnaire had been designed to gather information. The data variables in the
questionnaire were opinion based, except personal demographic question. Ordinal scale
questions were used to gather the opinion data. Nominal scales/category questions were used
to gather the respondents demographic data. A five point multi-item Likert scale was used
anchored 1= strongly agree (very easy, very high) and 5= Strongly disagree (very
difficult, very low) in the questionnaire. 1 shows strongly agree and on the other extreme 5
shows strong disagreement with the statement. Total 100 questionnaires were administered,
20 out of them were insufficient. Hence only 80 questionnaires were analyzed.
Sampling and data gathering:
The research was conducted within Delhi & NCR region. NCR includes Noida, Faridabad,
Ghaziabad, and Gorgon. The research involved the gathering of information from the sales
representatives, sales managers, Distributors and various companies representatives. Each
question in the questionnaire was explained to the respondent.
Convenience sampling method was used to get the response from targeted population is
survey. Most of the questionnaire was administered by me and rests Questionnaire were
administered by my colleague, due to time constraint. The whole data collection process took
less than one week.
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3.1: Data Analysis:
Statistical tool ANOVA is used for repeated ordinal measures. Chai-square test applied for
comparing several groups/categories.
All the data was transferred to an excel spreadsheet. The results from the survey were
matched to the volume growth. The data as it related to the strength of the relationship and
volume growth was transferred into two columns which were used in the correlation analysis.
The p-value was used to measure the significance of this correlation.
3.2: Research results:
Hypothesis results:
The following hypothesis results are linked to the ability of the sales representatives to build
relationships, their ability to communicate, their ability to build trust, their ability to build
loyalty and their ability to influence to influence the customer.
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The Ability To Build A Relationship (H1 H7):
Hypothesis 1: It is easier to build a relationship with a customer who is the same age or
younger than the sales representative.
SUMMARY
Groups Count Sum AverageVarian
ce
Column 1 80 117 1.46250.4289
56
Column 2 80 199 2.48750.5061
71
Column 3 80 128 1.60.3696
2
ANOVA
Source ofVariation SS df MS F P-value F crit
BetweenGroups
49.525 2 24.7625
56.93633
6.41888E-21
3.03392
Within Groups103.0
75 2370.434915
612
Total 152.6 239
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We reject null hypothesis and accept the alternate hypothesis at a 99% confidence level.
Here P value is almost equal to zero. Here we say that age play a vital role in building the
relationship with customer it is found that it is easier to build a relationship with a customer
who is the same age or younger than the sales representative. Its vary clear from the graph
itself.
Hypothesis 2: It is easier to build a relationship with customers of same gender.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 164 2.050.9341
77
Column 2 80 292 3.650.8379
75
ANOVA
Source ofVariation SS df MS F P-value F crit
BetweenGroups 102.4 1 102.4
115.5657
1.41724E-20
3.900989
Within Groups 140 1580.8860
76
Total 242.4 159
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It is found that the representative can build a good relationship with the same gender. As it
was found that the average rating given to the same gender is 2.05 and to the opposite gender
is 3.65. Hence it shows that it is easier for a sales person to maintain the relationship with a
customer of same gender.
Hypothesis 3: It is easier to build a relationship with a customer who has a similar or less
educated to that of the sales representative.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 113 1.41250.5238
92
Column 2 80 228 2.850.6101
27
Column 3 80 147 1.83750.7454
11
ANOVA
Source ofVariation SS df MS F P-value F crit
BetweenGroups
87.25833 2
43.62917
69.64211
1.6182E-24
3.03392
Within Groups148.47
5 2370.6264
77
Total235.73
33 239
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It is clear from the bar-graph that it is easier for a sales representative to maintain a
relationship with a customer who is similar or less educated.
Hypothesis 4: It is easier for a sales representative to build a relationship with a customer
who has the same home language.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 100 1.250.2151
9
Column 2 80 228 2.850.6860
76
ANOVA
Source ofVariation SS df MS F P-value F crit
BetweenGroups 102.4 1 102.4
227.236
2.16857E-32
3.900989
Within Groups 71.2 1580.4506
33
Total 173.6 159
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Hypothesis 5: It is easier for a sales representative to build a relationship with a customer
who lives in a similar area.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 178 2.2250.9867
09
Column 2 80 269 3.36250.9681
96
ANOVA
Source ofVariation SS df MS F
P-value F crit
BetweenGroups
51.75625 1
51.75625
52.95014
1.51E-11
3.900989
WithinGroups
154.4375 158
0.977453
Total206.19
38 159
Hypothesis 6: It is easier for a sales representative to build a relationship with a customer
who has the same race.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 178 2.2250.9867
09
Column 2 80 269 3.3625
0.9681
96
ANOVA
Source ofVariation SS df MS F
P-value F crit
BetweenGroups
51.75625 1
51.75625
52.95014
1.51E-11
3.900989
WithinGroups
154.4375 158
0.977453
Total 206.19 159
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38
Ability To Communicate With A Customer (H7 H12):
Hypothesis 7: It is easier for a sales representative to communicate with a customer of a
similar age or younger than him/her.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 137 1.71250.5618
67
Column 2 80 245 3.06250.6162
97
Column 3 80 138 1.7250.4803
8
ANOVA
Source ofVariation SS df MS F P-value F crit
BetweenGroups
96.30833 2
48.15417
87.10198
4.3842E-29
3.03392
Within Groups131.02
5 2370.5528
48
Total227.33
33 239
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Hypothesis 8: The ability of a sales representative to communicate with customers is the
same irrespective of gender is rejected.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 141 1.76250.4871
84
Column 2 80 176 2.20.4911
39
ANOVA
Source ofVariation SS df MS F P-value F crit
BetweenGroups
7.65625 1
7.65625
15.65179
0.000114727
3.900989
Within Groups77.287
5 1580.4891
61
Total84.943
75 159
It is evident from the data that sales representative feel more comfortable to the same gender.
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Hypothesis 9: It is easier for a sales representative to communicate with a customer of
similar or less educated.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 162 2.0250.4803
8
Column 2 80 163 2.03750.4162
97
Column 3 80 162 2.0250.3791
14
ANOVA
Source ofVariation SS df MS F P-value F crit
BetweenGroups
0.008333 2
0.004167
0.009798
0.990250402
3.03392
Within Groups100.78
75 2370.4252
64
Total100.79
58 239
Hypothesis 10: It is easier for a sales representative to communicate with a customer whose
home language is similar to the sales representatives home language.
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SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 110 1.3750.3132
91
Column 2 80 214 2.6750.6272
15
ANOVA
Source ofVariation SS Df MS F P-value F crit
Between
Groups 67.6 1 67.6
143.75
24
5.77451
E-24
3.9009
89
Within Groups 74.3 1580.4702
53
Total 141.9 159
Hypothesis 11: It is easier for a sales representative to communicate with a customer who
lives in the same area.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 156 1.950.5544
3
Column 2 80 230 2.8750.6677
22
ANOVA
Source ofVariation SS Df MS F P-value F crit
BetweenGroups
34.225 1 34.225
56.00777
4.7385E-12
3.900989
Within Groups 96.55 1580.6110
76
Total130.7
75 159
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Hypothesis 12: It is easier for a sales representative to communicate with a customer who
has the same race that of sales representative.
SUMMARY
Groups Count Sum
Averag
e
Varian
ce
Column 1 80 147 1.83750.5428
8
Column 2 80 236 2.950.6556
96
ANOVA
Source ofVariation SS df MS F P-value F crit
BetweenGroups
49.50625 1
49.50625
82.60845
3.97532E-16
3.900989
Within Groups94.687
5 1580.5992
88
Total144.19
38 159
The Ability Of Trust A Customer (H13 H18):
Hypothesis 13: A sales representative has a higher degree of trust with the customer who is
in similar age or a younger customer.
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SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 163 2.03750.5681
96
Column 2 80 218 2.7250.4550
63
ANOVA
Source ofVariation SS df MS F P-value F crit
BetweenGroups
18.90625 1
18.90625
36.95299
8.74152E-09
3.900989
Within Groups
80.837
5 158
0.5116
3
Total99.743
75 159
Hypothesis 15: The level of education of a customer relative to that of a sales representative
has a positive impact on the degree of trust between a sales representative and a customer. It
is easier for a sales representative to trust a customer of similar age to him/her.
SUMMARY
Groups Count Sum AverageVarian
ce
Column 1 80 119 1.48750.2530
06
Column 2 80 218 2.725
0.5310
13
Column 3 80 158 1.9750.3791
14
ANOVA
Source ofVariation SS df MS F
P-value F crit
BetweenGroups 62.175 2 31.0875
80.18215
2.53E-27
3.03392
Within Groups91.887
5 2370.387710
97
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Total154.06
25 239
Hypothesis 16: It is easier to a sales representative to build trust with a customer whose
home language is similar to the sales representatives home language.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 198 2.475 0.353797
Column 2 80 180 2.250.3924
05
ANOVA
Source ofVariation SS df MS F P-value F crit
BetweenGroups 2.025 1 2.025
5.427481
0.02108771
3.900989
Within Groups 58.95 1580.3731
01
Total60.97
5 159
Hypothesis 17: The area of residence of a sales representative relative to a customer has no
impact on the degree of trust.
SUMMARY
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Groups Count SumAverag
eVarian
ce
Column 1 80 229 2.86250.5251
58
Column 2 80 229 2.8625
0.3732
59
ANOVA
Source ofVariation SS df MS F
P-value F crit
BetweenGroups
5.68E-14 1
5.68E-14
1.27E-13 1
3.900989
Within Groups70.97
5 1580.4492
09
Total70.97
5 159
Hypothesis 18: A sales representative has a higher degree of trust with a customer that has
the same race.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 143 1.78750.4226
27
Column 2 80 238 2.9750.2778
48
ANOVA
Source ofVariation SS df MS F
P-value F crit
BetweenGroups
56.40625 1
56.40625
161.0515
6.87E-26
3.900989
Within Groups55.337
5 1580.3502
37
Total111.74
38 159
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Ability To Build Loyalty (H19 H24):
Hypothesis 19: A sales representatives gets a higher degree of loyalty from a customer that
is similar in age or younger than the sales representative.
SUMMARY
Groups Count Sum
Averag
e
Varian
ce
Column 1 80 149 1.86250.2973
1
Column 2 80 223 2.78750.4479
43
Column 3 80 150 1.8750.4651
9
ANOVA
Source ofVariation SS df MS F
P-value F crit
BetweenGroups
45.025 2
22.5125
55.79569
1.39E-20
3.03392
Within Groups95.62
5 2370.4034
81
Total140.6
5 239
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Hypothesis 20: A sales representative gets a higher degree of loyalty from a customer who
is of the same gender.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 248 3.1
0.2683
54
Column 2 80 168 2.10.3443
04
ANOVA
Source ofVariation SS df MS F P-value F crit
BetweenGroups 40 1 40
130.5785
2.01349E-22
3.900989
Within Groups 48.4 158 0.306329
Total 88.4 159
Hypothesis 21: A sales representative gets a higher degree of loyalty from a customer of a
similar level of education.
SUMMARY
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Groups Count SumAverag
eVarian
ce
Column 1 80 130 1.6250.2626
58
Column 2 80 220 2.75
0.4177
22
Column 3 80 200 2.50.3037
97
ANOVA
Source ofVariation SS df MS F P-value F crit
BetweenGroups
55.83333 2
27.91667
85.09646
1.40072E-28
3.03392
Within Groups 77.75 2370.3280
59
Total133.58
33 239
Hypothesis 22: A sales representative receive higher degree of loyalty from a customer who
speak the same home language same to representative.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 119 1.48750.2530
06
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Column 2 80 249 3.11250.1770
57
ANOVA
Source ofVariation SS df MS F P-value F crit
BetweenGroups
105.625 1
105.625
491.2068
2.38377E-50
3.900989
Within Groups33.97
5 1580.2150
32
Total 139.6 159
Hypothesis 23: A sales representative gets a higher degree of loyalty from a customer who
lives in the same area.
SUMMARY
Groups CountSum
Average
Variance
Column 1 80
16
7 2.0875
0.7390
82
Column 2 80247 3.0875
0.359335
ANOVA
Source ofVariation SS df MS F
P-value F crit
BetweenGroups 40 1 40
72.83204
1.1E-14
3.900989
WithinGroups 86.775 158 0.549209
Total126.7
75159
Hypothesis 24: A sales representative gets a higher degree of loyalty from a customer with
the same race.
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SUMMARY
Groups CountSum
Average
Variance
Column 1 80151 1.8875
0.22769
Column 2 80266 3.325
0.374051
ANOVA
Source ofVariation SS df MS F
P-value F crit
BetweenGroups
82.65625 1
82.65625
274.7239
2.15E-36
3.900989
Within
Groups
47.537
5
15
8
0.3008
7
Total130.19
38159
The Ability to Influence A Customer (H25 H30):
Hypothesis 25: A sales representative finds it easier to influence a customer of same age or
younger than him/her.
SUMMARY
Groups CountSum
Average
Variance
Column 1 80137 1.7125
0.334019
Column 2 80
25
5 3.1875
0.2555
38Column 3 80 16 2.05 0.4531
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4 65
ANOVA
Source ofVariation SS df MS F P-value F critBetweenGroups
95.55833 2
47.77917
137.4648
2.32E-40
3.03392
WithinGroups 82.375
237
0.347574
Total177.93
33239
Hypothesis 26: A sales representatives ability to influence a customer is the same for both
genders hypothesis is rejected in the evidence of p value which is near to zero. Data shows
that it is easier for a sales representative to influence a customer of same gender.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 135 1.68750.3188
29
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Hypothesis28: A sales representatives ability to influence a customer who speaks same
home language is higher than the customer whos home language is other than sales
representatives home language.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 117 1.46250.3023
73
Column 2 80 258 3.2250.4297
47
ANOVA
Source ofVariation SS df MS F
P-value F crit
Between
Groups
124.25
63 1
124.25
63
339.44
22
3.43E
-41
3.9009
89WithinGroups
57.8375 158
0.36606
Total182.09
38 159
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Hypothesis 29: It is easier for a sales representative to influence a customer who lives in a
similar area to that of the sales representative.
SUMMARY
Groups Count SumAverag
eVarian
ce
Column 1 80 186 2.3250.3993
67
Column 2 80 267 3.33750.4289
56
ANOVA
Source ofVariation SS df MS F
P-value F crit
BetweenGroups
41.00625 1
41.00625
99.01032
2.05E-18
3.900989
WithinGroups
65.4375 158
0.414161
Total
106.44
38 159
Hypothesis 30: A sales representative finds it easier to influence a customer who has the
same religion.
SUMMARY
Groups Count SumAvera
geVarian
ce
Column 1 80 1431.787
50.4226
27
Column 2 80 2513.137
50.2719
94
ANOVA
Source ofVariation SS df MS F
P-value F crit
BetweenGroups 72.9 1 72.9
209.8989
8.38E-31
3.900989
Within
Groups
54.87
5 158
0.347
31
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Total127.7
75 159
Table 1 below depicts the profile of the ultimate sales representative based on the research
results above.
Table 1: The Ultimate Sales Representative:
Variable QualitiesAge Same age or older
Gender Either Male or Female
Education Similar or Higher to Customer
Language Similar to Customer
Area of residence Near to Customer
Race Similar to Customer
The variables and qualities depicted in Table 1 provide the necessary context for the
interpretation of the results based on the strength of relationships to follow.
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Relationship Ability To Influence In-Store Drivers :
The next section of the study was related to the impact of the customer relations on the in-
store drivers linked to research problem two. Table 2 provides a summary of the hypotheses
results as they relate to the impact on relationships.
The individual results on H31 H35 and the interpretation thereof are discussed below:
Hypothesis 31: The sales representative believes that there is a positive relationship between
the strength of the relationship he/she has with a customer and the ability to list a product in
an outlet.
It was observed that 75 percent of respondents strongly agree with the above hypothesis. Themean responses differ with overwhelming evidence. The test has a high degree of
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significance with a p-value of 0,0000. Based on this evidence the null hypothesis was
rejected in favour of the alternative hypothesis. It can therefore be concluded that the stronger
the relationship between a sales representative and a customer the easier it is for the sales
representative to list a new product.
Hypothesis 32: The sales representative believes that there is a positive relationship between
the strength of the relationship he/she has with a customer and the ability to get a display
built in the outlet.
It is observed that 70 percent of respondents strongly agree with the above hypothesis. The
mean responses differ with overwhelming evidence. The test has a high degree of
significance with a Chi square of 23,096 and a p-value of 0,0000. Based on this evidence the
null hypothesis is rejected in favour of the alternative hypothesis. It can therefore be
concluded that the stronger the
relationship between a customer and a sales representative the easier it is to get a display built
in the outlet.
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Hypothesis 33: The sales representative believes that there is a positive relationship between
the strength of the relationship he/she has with a customer and the ability to influence the
price that products are sold for in an outlet.
It is observed that 39 percent of respondents strongly agree and 31 percent agree with the
above hypothesis. The mean responses differ with overwhelming evidence. The test has a
high degree of significance with a p-value of 0,0000. Based on this evidence the null
hypothesis is rejected in favour of the alternative hypothesis. It can therefore be concluded
that the stronger the relationship between a customer and a sales representative the easier it is
to get price compliance in an outlet. The ability to influence price is not as strong as that of
listing or building a display in an outlet. The correlation between in-store drivers and sales
volume The next section of the study was related to the correlation between in-store drivers
and sales volume linked to research problem three.
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Hypothesis 34: If a sales representative increases the amount of forward share in an outlet
there will be an increase in sales volume within that outlet.
It is observed that 62 percent of respondents strongly agree with the above hypothesis. The
mean responses differ with overwhelming evidence. The test has a high degree of
significance with a p-value of 0,0000. Based on this evidence the null hypothesis is rejected
in favour of the alternative hypothesis.
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Hypothesis 35: If the sales representative gets price compliance in an outlet there will be an
increase in sales volume within that outlet.
It is observed that 61 percent of respondents strongly agree with the above hypothesis. The
mean responses differ with overwhelming evidence. The test has a high degree of
significance with a Chi square of 87,216 and a p-value of0,0000. Based on this evidence the
null hypothesis is rejected in favour of the alternative hypothesis.
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Table 2: Impact of relationship
HypothesisFrequency on
a five Point
likert scale
P-
Value
Hypothesis
Result
H36: The stronger your relationship with your
customer the easier it is to convince him or her to
list a new product
76% 0,000 Reject
H37: The stronger the relationship with your
customer the easier it is to get a display built in
the outlet
70% 0,000 Reject
H38: The stronger the relationship with your
customer the easier it is to get price compliance
in an outlet
38% 0,000 Reject
H39:If you increase the amount of forward share
in an outlet by building displays and increasing
the points of interruption you will increase the
volume in that outlet
62% 0,000 Reject
H40: If you get price compliance in an outlet you
will increase the volume within that outlet
61% 0,000 Reject
*Note: 1 = strongly agree and 5 = strongly disagree.
**Note: H0: The percentage contribution of answers across the five point Likert scale will all
be the same i.e.p1=p2=p3=p4=p5=0.2 (20%).
It can therefore be concluded that there is a positive relationship between the amount of
forward share in an outlet and the sales volume within that outlet.
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4.1: Managerial implications and recommendation:
Most of the companies device their sales force with any consideration of all these factor
which have been discussed in the research study. Since it is found that there is a positive
correlation between a sales person profile and his/her ability to build relationship with
customer/distributor. And the ultimate result of this relationship come out in the form of
sales.
There has been a natural alignment of profile between customers and sales representatives.
The current strength of the relationship between a sales representative and a customer (outlet)
can be regarded as strong, but the following recommendations should be considered:
African customer whose home language is Punjabi/Tamil/English should be
served by sales representatives who also have the similar home language.
Customers should be matched on the basis of age to sales representatives. A
similar age is preferable. Or the age of sales representative should be little older
than his/her customer.
Better education is an advantage from a sales perspective. It was pointed out that
it is easier to
Influence a customer with same or a lower level of education. Training and a
higher level of intelligence relative to the customer can give the company a
sustainable competitive advantage.
Assigning sales routes which are similar to those where the sales representative
live is an advantage.
A data base capturing the profile of customers relative to sales representatives needs to be
established. While it is not logistically possible to match everyone, an understanding of the
current situation is important. Targets as to what should be achieved or maintained need to be
established if the organization is to become relationship focused. Establishing a current
reality picture and a destination are crucial management steps which need to be considered.
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5.1: Conclusion:
There is significant evidence that the profile of a sales representative does have an impact on
his or her ability to build a relationship with a customer and that from a sales representatives
perspective there is a link between the relationship and the ability to impact the in-store
drivers.
It is easier for a sales representative to build a relationship with a customer who is a similar
age. It is however easier for the sales representative to influence a younger customer or thecustomer who is similar in age to him/her. With respect to education, a stronger relationship
exists between a customer and sales representative of a similar education. Again it is easier
for a representative to influence a customer who has a lower or similar level of education.
Race does have an impact on the ability to build relationships. The research showed that a
Punjabi sales representative should service a Punjabi customer. There was a positive link
between matching sales representatives and customers who come from similar areas and have
the same religion.
Further to this, the sales representatives believe that manipulating the in store drivers will
have a positive impact on the sales volume within an outlet. The growth in volume over one
year it was found during the discussion with industry specialist. As competition increases
relationships will play more of a critical role in selling. It is important to understand the link
and develop a process which will give the organization a competitive advantage for the
future.
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Research Assignment Questionnaire:
Questionnaire No..
Date Completed.
As part of my Final year dissertation at NIILM-CMS, I am doing a research project on The
Driver influencing the relationship between Sales Representative and Customer and
their impact on Sales. As part of this project I will be evaluating the impact of gender,
culture and educations have on the ability of a sales representative to develop a relationship
with customer. The research project will examine the strength of the relationship and the
impact on sales.
Below is a list of question which you are requested to answer. It is important to answer
question from your personal point of view. There is no right answer or wrong answer. Put a
tick which you feel is most relevant. Your answers will be kept confidential and used only for
academic purpose.
Thank you for being part of the survey.
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Gopal Singh
PGDBM (NIILM-CMS)
Contact NO-9871586038
1. ABILITY TO BUILD A RELATIONSHIP:
1.1 A customer who is similar age toyou..
1.2 A customer who is older than
you.
1.3 A customer who is younger than
you.
1.4 A customer who is same gender as
you.
1.5 A customer who is opposite gender to
you.
1.6 A customer who has similar level of
education to you
1.7 A customer who has higher level of
education to you
1.8 A customer who has lower level of
education to you.
1.9 A customer who has similar home language
to you.
1.10 A customer who has home language other to you.
1.11 A customer who lives in similar area to
you
1.12 A customer who lives different type of
area to you.
1.13 A customer who has same race to
you.
1.14 A customer who has other race toyou.
[52]
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
Ver easVery Difficult
Neither easy
Nor Difficult
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2. ABILITY TO COMMUNICATE WITH A CUSTOMER:
2.1 A customer who is similar age to you..
2.2 A customer who is older than
you.
2.3 A customer who is younger than
you.
2.4 A customer who is same gender as
you.
2.5 A customer who is opposite gender to
you.
2.6 A customer who has similar level of
education to you
2.7 A customer who has higher level of
education to you
2.8 A customer who has lower level of
education to you.
2.9 A customer who has similar home language
to you.
2.10 A customer who has home language
other to you.
2.11 A customer who lives in similar area to
you
2.12 A customer who lives different type of
area to you.
2.13 A customer who has same religion to
you
2.14 A customer who has other religion to
you
.
[53]
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
Ver eas
Neither easy
Nor DifficultVery Difficult
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4. DEGREE OF LOYALTY:
4.1 A customer who is similar age to you..
4.2 A customer who is older than
you.
4.3 A customer who is younger than
you.
4.4 A customer who is same gender as
you.
4.5 A customer who is opposite gender to
you.
4.6 A customer who has similar level of
education to you
4.7 A customer who has higher level of
education to you
4.8 A customer who has lower level of
education to you.
4.9 A customer who has similar home language
to you.
4.10 A customer who has home language other to you.
4.11 A customer who lives in similar area to
you
4.12 A customer who lives different type of
area to you.
4.13 A customer who has same race to
you.
4.14 A customer who has other race to
you.
[55]
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
Very loyal Not loyal at all
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5. ABILITY TO INFLUENCE A CUSTOMER:
5.1 A customer who is similar age to you..
5.2 A customer who is older than
you.
5.3 A customer who is younger than
you.
5.4 A customer who is same gender as
you.
5.5 A customer who is opposite gender to
you.
5.6 A customer who has similar level of
education to you
5.7 A customer who has higher level of
education to you
5.8 A customer who has lower level of
education to you.
5.9 A customer who has similar home language
to you.
5.10 A customer who has home language other to you.
5.11 A customer who lives in similar area to
you
5.12 A customer who lives different type of
area to you.
5.13 A customer who has same race toyou..
5.14 A customer who has other race to
you
6. THE IMPACT OF RELATIONSHIP:
[56]
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
Very difficultVery easy Neither Easy
Nor Difficult
Strongly Agree Strongly Disagree
Neither Agree
Nor Disagree
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6.1 The stronger the your relationship with your customer
the
Easier it to convenience him/her to list a new product
6.2 The stronger the relationship with your customer the
Easier it get a display built in the outlet
6.3 The stronger the relationship with your customer the
Easier is it get price compliance in an outlet
6.4 If you increase the amount of forward share in an outlet by
Building display and increasing the point of interruption
will increase the volume in that outlet
6.5 If you get price compliance in an outlet you will
increase
the Volume within that outlet
7. PERSONAL INFORMATION:
7.1Your Name.
7.2Your Ag20-24..25-29....30-34..
.35-39..>40
[57]
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
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7.3Gender.Male....Female
7.4 Educational qualification
..High school..Intermediate.Graduate..Post Grad
7.4Religion..
7.5How long have you been on your current sales route (yrs).
...0-1..1-2..2-5...>5.
References:
[58]
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Bhagat, P.S. & Williams, J.D. 2008. Understanding gender differences in professional
service relationships, Journal of Consumer Behaviour, 25(1):16 22. Boles, J., Hiram, C.,
Barksdale, J.R. & Johnson, J. 1997.
Business relationships: an examination of the effects of buyer-salesperson relationships and
willingness to refer and recommend, Journal of Business & Industrial Marketing,
Buttle, F. 2005. Customer relationship management concepts and tools. Oxford, Butterworth
Heinemann.
Ford, D. 1982. The development of buyer-seller relationships in industrial markets. In
Hakansson, H. (Ed.). International marketing and purchasing of industrial goods.
Chichester: John Wiley & Sons.
Little, E. & Marandi, E. 2003. Relationship marketing management. London, Thomson.
Moorman, C., Zaltman, G. & Deshpande, R. 1992. Relationships between providers and
users of market research: The dynamics of trust within and between organizations, Journal
of Marketing Research, 29(3): 314- 328.
Morgan, R.M. & Hunt, S.D. 1994. The commitment-trust theory of relationship marketing,
Journal of Marketing, 58 (3):20 38.
Payne, A. 2006. Handbook of CRM Achieving excellence in customer management.
Burlington: Butterworth- Heinemann.
Ulaga, W. & Eggert, A. 2006. Relationship value and relationship quality Broadening the
nomological network of business-to-business relationships, European Journal of Marketing