Business School
SALESPEOPLE’S EXPERIENCES ON INTERNATIONAL B2B SALES PROCESS - A QUALITATIVE CASE STUDY
Master’s Thesis,
International Business and Sales Management Sudipta Chatterjee (277230)
30 May 2018
UNIVERSITY OF APPLIED SCIENCES Faculty of Social Sciences and Business Studies Business School
International Business and Sales Management
CHATTERJEE, SUDIPTA: Salespeople’s Experience on International B2B Sales Process- A qualitative case study
Master’s Thesis, 89 pages and 6 appendices (5 pages) Instructor University Lecturer, Dr. Jonna Koponen May 2018
Keywords: International B2B sales process, cultural diversity, adaptive selling behaviour Evidently, international business-to-business (B2B) selling is one of the prevalent operations that most firms implement to attain internationalization. In cross-national trade, cultural responsiveness help sellers construct customized B2B sales process for their potential buyers to address their unique needs thus, creating a prospect for a long lasting business relationship.
Furthermore, adapting to varying national cultures while performing B2B sales process ensures better sales performance and customer retention.
The literature review of this study is built on the theory of B2B selling, voiced by Moncrief and Marshall’s (2005) in evolved seven steps of selling which states the quintessential stages of a B2B sales process. In addition, dimensions of national culture (Hofstede, 1980) is discussed which provide insights on cultural factors that distinguishes ways business is conducted between different nations. As well, theory of adaptive selling behavior (Spiro &
Weitz, 1990) communicates the extent to which salespeople practice adaptation during B2B sales process. The developed framework, which is based on the discussed theories and concept, incorporates the aims and findings of this study to present a fundament for the thesis.
The current research was based on qualitative analysis method and was conducted on a single case company focused on construction business. Two Finnish informants; the CEO and the Sales Director of the company; were interviewed face-to-face and over telephone about their B2B sales experiences with low cultural diverse nations (Sweden and Norway) and high cultural diverse nation (India). The collected data were then analyzed using inductive approach to obtain in-depth understanding of the role of cultural diversity and adaptive selling behaviour of seller in international B2B sales process.
Findings of this study indicate that national culture and adaptive selling behavior (ASB) of sellers does play an important role in constructing international B2B sales process of a business, however, only at certain stages of the B2B sales process. The international B2B sales process is more focused on buyer’s need and seller’s ability to address those needs regardless of their cultural background. The findings also reveal that ASB of a seller becomes more evident under diverse culture however, it is solely to build healthier business relationships and serve international customers better and not merely to close business deals.
The study is useful for the local Finnish companies willing to endeavour in the international market through selling specifically, international business-to-business (B2B) sales.
Table of Contents
1 INTRODUCTION ... 6
1.1 Research background ... 6
1.2 Research gap and research problem ... 8
1.3 Research goals and questions ... 10
2 LITERATURE REVIEW ... 12
2.1 Business-to-business (B2B) sales ... 12
2.1.1 Evolved phases of traditional selling process ... 14
2.1.2 Seven steps of selling ... 18
2.2 Adaptive selling ... 24
2.2.1 Seller’s adaptive selling behaviour ... 25
2.2.2 Drivers of Adaptive Selling Behaviour ... 28
2.3 National culture ... 31
2.3.1 Hofstede’s dimension of national culture ... 32
2.3.1.1 Power Distance ... 32
2.3.1.2 Individualism Vs Collectivism ... 33
2.3.1.3 Masculinity Vs Femininity ... 34
2.3.1.4 Uncertainty Avoidance ... 34
2.3.2 National culture and business relationships ... 35
2.4 Summary ... 37
3 METHODOLOGY ... 41
3.1 Research design and justification ... 41
3.2 Data collection technique and analysis method ... 42
4 EMPIRICAL ANALYSIS ... 45
4.1 The case company ... 45
4.2 Analysis of the collected data ... 47
4.2.1 International B2B sales process when cultural diversity between buyer and seller is low ... 49
4.2.1.1 Role of national culture in low cultural diversity nation ... 56
4.2.1.2 Role of ASB of sellers in low cultural diversity nation ... 59
4.2.2 International B2B sales process when cultural diversity between buyer and seller is high
... 62
4.2.2.1 Role of national culture in high cultural diversity nation ... 69
4.2.2.2 Role of ASB of sellers in high cultural diversity nation ... 71
4.3 Results ... 73
5 DISCUSSIONS ... 77
5.1 Validity and Reliability ... 82
5.2 Theoretical contribution ... 83
5.3 Managerial implications ... 84
5.4 Limitations and further study ... 86
6 CONCLUSIONS ... 88
REFERENCES ... 90
APPENDIX 1 (1/6)... 96
LISTS OF TABLES AND FIGURES
Tables
Table 1. Traditional selling process versus Evolved selling process Table 2. A synopsis of the literature review
Table 3. Demographics of Salesperson A and Salesperson B
Table 4. Codes for the interviews on how international B2B sales process is conducted with low cultural diverse nation?
Table 5. Codes for the interviews on what role does national culture play in international B2B sales process with low cultural diverse nation?
Table 6. Codes for the interviews on what role does ASB of seller’s play in international B2B sales process with low cultural diverse nation?
Table 7. Codes for the interviews on how international B2B sales process is conducted with high cultural diverse nation?
Table 8. Codes for the interviews on what role does national culture play in international B2B sales process with high cultural diverse nation?
Table 9. Codes for the interviews on what role does ASB of seller’s play in international B2B sales process with high cultural diverse nation?
Table 10. Cross-case analysis - International B2B sales process of Finland with low cultural diverse nations and high cultural diverse nation.
Figures
Figure 1. Drivers of adaptive selling behaviour (ASB) Figure 2. The analysis process of the collected data
1 INTRODUCTION 1.1 Research background
The research has valuable information for the local Finnish companies willing to endeavour in the international market through selling specifically, international business-to-business (B2B) sales. More precisely, the research explores how international B2B sales is conducted when national culture is involved. In addition, the research discovers the adaptive selling behaviour (ASB) of the seller and its role in B2B sales process within culturally diverse nations. Although the study is focussed on exploring international B2B sales process of a Finnish construction company, the study additionally avails essential information to other Finnish companies attempting to internationalize through B2B selling. The study will help them gain awareness on the aspects of international B2B sales, cultural diversity, national culture, and adaptive selling behaviour of sellers.
In recent times, the business world has witnessed an incomparable rush in international commerce that has led many local firms to globalize within a short span of time (Gómez- Mejia & Palich, 1997). International trade not only provides relative benefits, but it also offers beyond the stock aids to both buyer and seller in terms of cheap goods, easy access to unavailable products, human and material resources, and a global market for reasonable trade (Gu, Wang & Wang, 2016). However, our understanding of why some international ventures are more successful than other global endeavours in the culturally diverse situation is limited (Hansen et al., 2011). Hence, the study aims at filling the research gap by enhancing our understanding of effective international B2B sales process.
As it is evident, cross-cultural selling is a substantial issue which requires a high level of cultural sensitivity (Hansen et al., 2011). Especially in B2B selling, possessing vast knowledge of buyers and their business surroundings is a prerequisite for sellers (Weitz, Sujan & Sujan, 1986). The eminent traditional seven steps of selling articulated by Dubinsky (1980/81) has provided a strong base for many researchers to study and propose several advanced B2B sales processes along the years which has encouraged sellers to practice B2B sales efficiently. However, previous studies that have investigated the main elements of the B2B sales process (Dubinsky, 1980/81, Moncrief & Marshall, 2005; Åge, 2006) have not
emphasised the importance of national culture or cultural diversity in the context of B2B selling. Moreover, Moncrief’s & Marshall’s (2005) highly acclaimed evolved seven steps of selling that has marked enduring business relationships and technological advancement as the key for successful selling, did not underline the role of cultural diversity on B2B sales processes. Hence, the current study aims at responding the call for more information on the role of national culture on B2B sales process where cultural diversity between the participating countries is either low or high.
Furthermore, when performing international business (IB), the role of a buyer-seller relationship is believed to be the key ingredient (Moncrief & Marshall, 2005). Researchers in the past have accentuated the significance of this relationship and have declared it to be one of the greatest resources for developing competitive advantages. To be precise, apart from the cultural aspect, B2B selling is highly affected by the notion of buyer-seller relationship which is the foundation for relationship selling. (Claycomb & Frankwick, 2010.) Also, Moncrief & Marshall (2005) in their evolved sales process have underscored relationship selling which stimulates the B2B sales process significantly. Researchers indicate that orientation of buyer-seller relationship affects the adaptation of sales processes which portrays seller in a primary role of an adaptor (Spiro & Weitz, 1990). Whereas, buyer’s role comprises of enabling and supporting seller’s adaption (Viio & Grönroos, 2015).
Since the current study revolves around seller’s perspective, it is vital to underline adaptive behaviour of sellers by discussing the ASB theory proposed by Spiro & Weitz (1990) and discovering the significance of the role of ASB in the international B2B sales process. The concept of ASB has been a topic of research in many studies namely, in the United States and in Western nations, however, only a few studies are dedicated to developing countries (Money & Graham, 1999; Franke & Park, 2006). The current study focuses on Sweden, Norway and India which has an evident cultural disparity thus, giving this study a generous scope and purpose to explore ASB in cross-cultural context. Hence, from the standpoint of this research, more insight on the role of ASB in international B2B sales will be a pragmatic contribution to the adaptive selling literature.
1.2 Research gap and research problem
The primary aim of the research is to compare international sellers’ experiences on the B2B sales process between Finland-Sweden, Finland-Norway and Finland-India and draw a conclusion on conducting B2B sales process internationally. As mentioned earlier, previous B2B sales models (Dubinsky, 1980/81; Moncrief & Marshall’s, 2005) did not communicate the role of national culture in B2B sales processes and thus, the potential of national culture affecting the international B2B sales process remains unidentified in previous B2B sales process models. In addition, the extent to which sellers practice ASB in B2B sales amidst cultural disparity is a subject worth analysing. Therefore, the purpose of the study is to explore the role of national culture and seller’s ASB in B2B sales process when cultural diversity is involved.
Metcalf, et al. (2006) emphasize the power of culture which is highly capable of complicating, procrastinating and even aggravating negotiations during B2B sales processes.
Nevertheless, it is realized that individuals and groups may be unified on some dimensions despite their cultural origin (Metcalf et al., 2006). The current study acknowledges the role of national culture on international B2B sales process from both ends; one end, where the cultural difference between buyer and seller is low and the other end, where the cultural difference is high. This research provides advanced B2B sales model as an outcome and uncovers conditions those are favourable for local Finnish companies doing B2B sales mainly with Sweden, Norway, and India.
Most of the trade partners of Finland originate from EU (European Union) countries which strengthen the need for recognizing relevant cultural factors those can influence the B2B sales process conducted within similar or low cultural diverse nations. Comparing B2B sales process of Finland-Sweden and Finland-Norway, therefore, becomes relatively essential as these nations share low cultural diversity with each other (Lewis, 2010) which is, also, a research prerequisite. The findings, in addition, will disclose the role of ASB of sellers in sales scenarios where the cultural difference between buyer and seller is low thus, identifying the role of ASB in the international B2B sales process. More specifically, the study explores the extent to which Finnish sellers adapt to Swedish and Norwegian buyers during B2B sales
interactions to meet their sales goals. Besides, it will be motivating to discover if sellers benefit from cultural similarities among these nations or do it create more complications.
On the other hand, the B2B sales process comparison between Finland and India will provide guidelines to local Finnish companies aiming at the Indian market. The need of responding this issue stems from the fact that trade relation between India and Finland has augmented expressively since 2000 and thus, the room for more potential business is still immense considering the huge market size of India (Team Finland, 2016). Currently, India ranks as the fourth largest trade partner of Finland in the Asian market (Team Finland, 2016) and hence, the study will provide more evidence on establishing stronger trade opportunities in future while taking cultural sensitivity and seller’s selling conducts into consideration.
The theories and collected data discussed in this research are adequately proficient to produce understanding and results on the stated research goals, however, the outcome is restricted only to a few nations; Sweden, Norway, and India. Since the research case company has international trade relations with all the above-mentioned nations, it gives an opportunity to this study to gain a comprehensive understanding on B2B sales operation from seller’s perspective when national culture is varying. Furthermore, in-depth comparison of international B2B sales process of Finland with each nation comprising of different cultural approach and buying perspectives, will provide profound knowledge to the research analysis and accordingly, aid results formation. Consequently, the findings will fill the research gap.
In this study, a theoretical model of Moncrief and Marshall (2005) is discussed that acts as a prime concept of the body of work. To gain more insight on national culture and produce satisfactory arguments of its role in the international B2B sales process, Hofstede’s Dimensions of National Culture (1980) is referred to, which acted as a vital source for drawing conclusions on national cultural level values. Furthermore, ASB of sellers during B2B sales interaction and its potential of affecting the B2B sales process is communicated using the theory of adaptive selling stated by Spiro & Weitz (1990). It should be noted that the study focuses on a construction company’s international B2B sales process thus, exempting other industries and service markets thus, limiting the outcome of this study. Also, incompetency of reflecting buyer’s perspective in the study is a noticeable drawback which
offers decent opportunities to researchers for further study. Nevertheless, the case company addresses the precise needs of the research problem by providing relevant information and data on the B2B sales process, national culture, and seller’s ASB and assist in appropriate results generation.
1.3 Research goals and questions
The scientific importance of this research is related to gaining a comprehensive understanding on two types of international B2B sales processes: one, with low cultural diversity between business partners and second, with high cultural diversity between business partners. Due to lack of information on the prominence of national culture and its bearing on B2B sales process in existing literature articulated Moncrief & Marshall (2005), the current study aims at filling the research gap by introducing elements of cultural diversity in the B2B sales process and recognizing the role of national culture and ASB of sellers during B2B sales interaction within different cultures. With this knowledge, the researcher will build new theoretical understanding on modern international B2B sales process in two different contexts; low and high where cultural diversity plays the lead.
The practical relevance of the research is related to addressing the needs of growing globalization. Lately, the interest of Finnish companies to venture in the Asian market, namely India is rising (Team Finland, 2016). This study offers a vital scope to present its finding as a tool for the local Finnish companies to penetrate the Indian market with suggested considerations. Likewise, the study delivers potential motivating factors for Finnish SMEs and start-ups to explore their neighbouring markets such as Sweden and Norway, with practical knowledge of real-life experiences. Certainly, the focus of this research is on B2B sales process conducted internationally however, the discovered aspects of national culture and seller’s ASB can be used in other forms of cross-cultural trade as well.
To sum up the chapter, the reviewed perspectives lead to the ultimate research problem:
How is international B2B sales process conducted?
For answering this research problem, it is required to understand and reason the research questions:
RQ1: What role does national culture play in the international B2B sales process, when cultural diversity between buyer and seller is low?
RQ2: What role does adaptive selling behaviour (ASB) of sellers play in the international B2B sales process, when cultural diversity between buyer and seller is low?
RQ3: What role does national culture play in the international B2B sales process, when cultural diversity between buyer and seller is high?
RQ4: What role does adaptive selling behaviour (ASB) of sellers play in the international B2B sales process, when cultural diversity between buyer and seller is high?
The rest of the master’s thesis is structured as follows. First, the existing literature on B2B sales process by Moncrief & Marshall (2005) is communicated which is followed by the theory of adaptive selling (Spiro & Weitz, 1990) and the concept of national culture level values by Hofstede (1980) in dimensions of national culture. The research is then extended by discussing methodology, data analysis, and findings of the empirical case study. The research, in addition, communicates the theoretical contribution, managerial implications, limitations, and scope for further study. The thesis is finally wrapped up by a conclusion of this study.
2 LITERATURE REVIEW
To enhance the understanding of readers on how the study is positioned in the field of business science, the key concept on complex selling processes in B2B markets is discussed.
The chapter begins with exploring the concept of B2B sales and later introducing different approaches of selling, relevant to this study. The chapter continues with discussing evolution of B2B sales process till date and subsequently, communicating the theory of ASB and concept of dimensions of national culture to broaden the understanding of readers from the perspective of this study. Finally, a synopsis of the literature review is presented.
2.1 Business-to-business (B2B) sales
The business-to-business or B2B sales, as it is widely known, is a concept where selling is not directed to the end users, but to another business entity (Armstrong et al., 2017). A typical B2B sales process includes selling of products and services to another organization through distinct sales stages (Dubinsky, 1980/81). The parties involved in B2B sales process communicate and negotiate to reach a common goal by trading and using professionals. B2B sales are considered more complex than business-to-consumer (B2C) sales as it involves a high level of human interaction and relationship building, not only during the sales process but as well post sales. (Moncrief & Marshall, 2005).
It is understood that in B2B selling, salespeople use various selling techniques to successfully seal a deal (Moncrief & Marshall, 2005). It is that quality of a seller that requires analysing the selling environment, understanding a customer’s need, adapting accordingly and ultimately, providing solution to the customer (Spiro & Weitz, 1990). However, it is worth noting that while some selling approaches require dynamic consultation with buyers, other techniques require careful listening before offering a solution (Ingram et al., 2010).
Nevertheless, in any case, most researchers advice building relationship in B2B sales processes to establishes long-lasting business relationships (Doyle & Roth, 1992; Moncrief
& Marshall, 2005) and customer retention (Roman & Iacobucci, 2010). Besides, a good business relationship between a buyer and seller ensures a healthy business relationship with the supplier as well (Foster & Cadogan, 2000). Therefore, it can be concluded that selling
that is based on trust and good associations between the buyer and the seller developed over a period is known as relationship selling (Manning & Reece, 1995; Foster & Cadogan, 2000).
Selling techniques, which embark relationship selling approach, such as solution selling, concentrate on listening to prospects, analysing, and understanding their needs and then recommending a solution. In such selling approaches, the prospect usually has a defined problem to which seller delivers solution through asking questions and actively attending to their requirements. Specifically, in solution selling, sellers aim at providing pragmatic solutions to customers through their offerings and eventually, create a healthy business relationship. (Manning & Reece, 1995.)
Consultative selling, also known as solution selling, is particularly effective in technical sales. In this selling approach, the aim is to provide a solution to buyers by interrogating them about their requirements and providing them with the best possible solution by the seller who acts as a consultant throughout the process. Here, the relationship is built gradually through understanding, knowledge, and expertise of the seller and eventually, emotional connection is established to build a reliable business relationship. (Manning & Reece, 1995.)
As claimed by some authors, the goal of relationship selling is to earn the position of
“preferred supplier” by developing trust with key customers (Doyle & Roth, 1992). However, researchers confirm that because of the ever-evolving nature of relationship selling, it can be applied to almost all personal selling situations (Grewal & Sharma, 1991; Beatty et al., 1996;
Jolson, 1997). Relationship selling, not only includes maintaining a trustful relationship but also involves learning new skills of understanding customer’s need and developing a strong relationship with them for long-lasting benefits (Doyle & Roth, 1992).
Manning & Reece (1995) confirm that in relationship selling, buyer-seller association begins right from the inception of a sales process and lasts until the deal is closed, specifically, ones the prospect becomes an established customer. In relationship selling, relationship building between buyer and seller occurs at all stages of a B2B sales process and therefore, it should be practised in every firm irrespective of the size of the organization, products they offer, types of buyers they deal with our firm’s position in the market (Jolson, 1997).
For sellers, to adopt appropriate selling techniques to attract buyers, it is important to fully understand own company’s B2B sales process as well constraints and liberations attached to it. A typical B2B sales process includes stages of prospecting, gathering knowledge and information on the prospect, approaching, demonstrating, and selling the product and providing required customer services (Moncrief & Marshall, 2005). However, many intellects have discovered more precise stages of B2B sales process which organizations adapt to benefit their B2B sales operations. The following section is precisely focussed on various models of selling process and their evolution along the years thus, making sales more long-term business oriented.
2.1.1 Evolved phases of traditional selling process
Many authors, through their suggested models and patterns, have tried to understand the complex nature of B2B selling and formula attached to it that makes it quintessential for organizations to adopt and perform it to attain success in sales operations. The field of selling has evolved over the past years with many new discoveries and efforts made to update old B2B sales models to suit the requirement of modern selling (Moncrief & Marshall, 2005).
Since the inception of the traditional seven steps of selling (Dubinsky, 1980/81), Moncrief and Marshall’s (2005) evolved sales process is one of the most celebrated sales processes amongst other B2B sales process discoveries.
One of the attempts belonged to Plank and Dempsey (1980), who suggested rather short selling process where acknowledging buyer’s need and analysing organization’s buying environment were the key points and paying attention to the concept of relationship selling was pivotal. Keeping intact the essence of traditional selling process (Dubinsky, 1980/81), the modified model consists of sequential steps (Plank & Dempsey, 1980):
1) setting the stage;
2) determining the buyer’s need;
3) presentation; and 4) exit.
The prime focus of this model was on exploring customer’s buying needs and providing solutions through relationship building, which was also evident in traditional seven steps of
selling (Dubinsky, 1980/81). It is worth mentioning that the traditional seven steps of selling have acted as a fundament for many sales processes over the years. Therefore, for readers to understand its contribution to selling literature, it is discussed elaborately in the following section under the heading, seven steps of selling.
Noteworthy, a quite similar attempt at highlighting the concept of relationship selling was perceived in Persson’s finding in 1999 that proposed a model of seven stages featuring relationship maintenance in a prime role. The revised stages were as follows, “relationship maintenance”, “problem identification”, “technical proposal”, “offering”, “technical and commercial negotiation”, “instructions for production”, and “installation and service” and two overall phases “relationship maintenance and proposal”, and “offering and installation”.
The repetitive nature of Persson’s selling model ensured the fact that the B2B sales process could be interrupted and can be restarted at any point during selling situations thus, giving users the scope of constant improvement. (Åge, 2011.)
Following the trend of revisiting the old model, Shapiro & Posner (2006) suggested an adapted sales process that entailed following steps: (1) opening the sales process; 2) qualifying the prospects; 3) developing the presentation; 4) organising the justification; 5) making the presentation; 6) coordinating resources and personnel; 7) closing the sale; and 8) nurturing the account relationship. In the first step, it is assumed that a salesperson has done the groundwork and possess all relevant information on the prospect. A sales process is then ready to be launched, however, the authors stress on involving a third party. Meaning, the salesperson should be introduced by a third party who shares a good reputation with the prospect thus, enhancing the chance for the salesperson of an effective approach.
In the second step, the salesperson evaluates the potential of a prospect to become a real customer (Shapiro & Posner, 2006). Based on several aspects, such as client’s willingness to buy; requirement for the product, recognition of the need and responding to that and so on, the lead is either qualified or disqualified of becoming a customer. This step is rather significant in determining whether to stop the sales process or continue with it. (Shapiro &
Posner, 2006.)
The third step (Shapiro & Posner, 2006) focuses on developing a sales strategy through presentation. The presentation is based on comprehensive information gathered during and after analysing the buyer. It usually contains information benefiting both buyer and his company and at the same time, aims to attract decision makers. Finding the right person in a buying company ensures a constructive proceeding of a sales process. After locating a target person or a group, cost friendly justification for the purchase is planned.
This fourth step aims at focussing on the feasibility of the prospect in terms of cost and benefits obtained from the product in real sense and not that is perceived by the selling company. Making the presentation, which is the fifth step, summarizes all relevant information in the form of an offer made to the prospect. Factors such as attendees, location, timing are taken into consideration while presenting and making a proposal or asking for an order. (Shapiro & Posner, 2006.)
Coordinating resources and personnel is the sixth step. The salesperson is the main link between the selling and the buying company thus, he or she should be provided with a generous amount of freedom for conducting the sales process. Furthermore, a salesperson must possess knowledge of the selling company’s operational state and financial capacity in addition to human resources competencies, to coordinate effectively and confidently. Only then a salesperson can successfully plan and execute a B2B sales process. (Shapiro & Posner, 2006.)
The stage that provides evidence of the successful execution of a sales process is closing which is the seventh step. This step involves placing an order by the buying company and as well, confirming the deal. Even though documentation and other formalities might take time, the B2B sales process reaches an affirm stage. (Shapiro & Posner, 2006.)
The final step that most authors consider to be the real beginning of a sales process is following up buyers (Dubinsky, 1980/81; Moncrief & Marshall, 2005; Åge, 2011). In their B2B sales process model, Shapiro & Posner (2006) stress on performing it by nurturing the account relationship. This follow-up not just include relationship nurturing by continuous calls or sending letters or emails but by also reminding the buyers of their successful purchase and its benefits. In the altered model (see above) of selling process suggested by Shapiro and
Posner (2006), it is clearly visible that emphasis has been made on nurturing the relationship.
The concept of relationship building through improved sales affiliation is strongly evident in the final stage. In addition, the need for integrating aspects of “coordination” and “planning”
in the customised sales process, was particularly stressed throughout by the authors.
An interesting addition to the fact which supports relationship building in B2B selling process was of Ingram et al. (2008) who anticipated a “trust-based sales process” model that reflected the dynamic nature of traditional seven steps of selling in practice. However, the proposed model was not placed in a sequential manner unlike the traditional seven steps of selling (Dubinsky, 1980781), instead, the stages were interrelated in generating customer value. The correlated stages that strongly echoed the notion of traditional seven steps of selling included following stages, “initiating customer relationships”, “developing customer relationships”, and “enhancing customer relationships” (Ingram et al. 2008; Åge 2011).
One of the recent attempts to present “seven steps of selling” in a different light was made by Åge (2011). The author stated that B2B selling processes are complex and entail “dynamic actions” which are made possible through inventive “business manoeuvring”. The model describes the B2B selling process in four stages;
1) business standardisation;
2) business fraternisation;
3) personalisation; and
4) probationary business rationalisation.
The author (Åge, 2011) justified the need for adaptation as the lack of realization in “seven steps of selling” of the dynamic nature of B2B selling. According to Åge (2011), the traditional seven steps of selling fail to address issues typical to B2B sales namely,
“organisational, collaboration at the organisational level, relationship building at a personal level and costs and risks evaluation”.
Understanding customer needs and providing appropriate solutions has been a major motive behind most B2B sales processes this far. Though, providing solution which is based on the developed relationship between the participants is, apparently, the main strategy behind all modified sales processes. According to Moncrief & Marshall (2005), the driving forces
behind efforts to modify the traditional seven steps of selling are namely technological advancements and long-term relationships with customers. Other authors namely, Shapiro and Posner, (2006), Ingram et al. (2008), and Åge (2011) have also stressed on similar factors which have acted as an impetus for them to revise Dubinsky’s (1980/81) traditional seven steps of selling.
Even though it is evident from the above discussion that different B2B sales processes focus on customer centred selling through relationship building, none of the referred sales processes (Plank & Dempsey 1980; Dubinsky 1980/81; Persson 1999; Moncrief and Marshall 2005; Shapiro and Posner 2006; Ingram et al. 2008; Åge 2011) have highlighted the role of national culture and its potential in building trust-based relationship among B2B sales participants for long-term prospect. There is no revelation of how possessing knowledge of buyer’s national culture, if at all, could strengthen long-term relationship sales in a cross-cultural environment. Therefore, it can be concluded that previous studies on B2B sales process have not realised the need to explore the aspect of national culture and its potential role in constructing B2B sales process. This gap, therefore, provides purpose to this study to address the lacking need.
2.1.2 Seven steps of selling
Most of the current selling models, communicated in this literature review, are influenced by the eminent evolved seven steps of selling proposed by Moncrief & Marshall in 2005 (Åge, 2011). The evolved seven-step has its notion enrooted in Dubinsky’s (1980/81) findings of personal selling process which is, possibly, the oldest pattern in sales discipline, however, there is evidence of similar selling process which was articulated in 1920 (Moncrief &
Marshall, 2005). This section, therefore, communicates the traditional seven steps of selling by Dubinsky (1980/81) and then draws a comparison between Moncrief & Marshall’s (2005) evolved seven steps of selling and the former B2B sales process.
The seven steps of selling which are highly acknowledged in the B2B sales field, traditionally consist of the following stages: 1) prospecting; 2) pre-approach; 3) approach; 4) presentation;
5) overcoming objections; 6) close; 7) follow-up. The first step, prospecting, involves an active search for new and potential customers to expand the existing customer base and uplift
sales manoeuvres. This step is performed by salespeople and includes qualifying prospects and developing screening trials. The second step includes activities that help salespeople gain relevant information on the prospect. Mostly, it comprises of gathering information on the prospect and its business operations using connections and other available sources thus, preparing for rest of the sales process. (Dubinsky, 1980/81; Moncrief & Marshall, 2005.) Principally, this step helps gain a wider insight into the prospect and its business activities.
The third step includes approaching the customer and establishing a business relationship.
This step, as articulated by Dubinsky (1980/81), could start with a simple handshake, and move on to a firmer interaction tactic depending on the situation. Once the initial buyer-seller interaction has been established and customer’s need has been realized, product presentation is followed which is the fourth step. (Dubinsky, 1980/81; Moncrief & Marshall, 2005) Dubinsky (1980/81) articulates the fourth step as an important step which comprises of understanding customer’s standpoint and building arguments around it. This, therefore, requires a lot of preparation and realization of buyer’s prerequisites.
The fifth step, overcoming objections, mostly comprises of questions & answers between buyer and seller concerning the product (Dubinsky, 1980/81; Moncrief & Marshall, 2005) It can be, at times, time-consuming and disappointing for sellers but can eventually prove useful as it gives seller the opportunity to communicate the product and it’s worth in details.
Dubinsky (1980/81) emphasizes on the positivity of this step as it may help the seller uncover many hidden agendas of the buyer and thus, can help overcome it.
The sixth step, close, which is also defined as a successful completion of the sales process is the phase where a deal is finalised between the buyer-seller pair. Arrival to this point indicates buyer’s approval of the deal after the seller has successfully overcome objections.
However, it is the efficiency of the seller of how conveniently the final order will be confirmed by the buyer. Even though, fundamentally, close is the end of a sales deal but the closing of a sales process is yet not achieved. The seventh step which requires strict follow- up and frequent interaction with the buyer is considered as the most active step of the B2B sales process. The interaction is conducted mainly through a phone call or a letter just to ensure the proficiency of the sold product. (Dubinsky, 1980/81; Moncrief & Marshall, 2005.)
Later in 2005, Moncrief & Marshall realised the need for an improved B2B sales process that considers aspects of modern selling which is more relationship based and customer oriented.
Hence, the evolved B2B sales process was articulated which focussed on the concept of technological advancements and long-term relationship that, later, initiated several other modified versions of the B2B sales process, already discussed in this chapter under the section, evolved selling processes. The following section discusses traditional seven steps of selling (Dubinsky, 1980/81) alongside evolved selling process (Moncrief & Marshall, 2005) to make readers understand the necessity of the evolution of the old selling process. It argues of why traditional seven steps of selling are no longer enough to perform effective B2B sales, even though, many existing organizations still rely on it for performing B2B sales process.
Table 1. Traditional selling process versus Evolved selling process.
The above table 1. shows respective steps in both B2B selling approaches. The discussion below aims at addressing why Moncrief & Marshall’s evolved selling process is nominated as the main concept in this study for obtaining an understanding on how international B2B sales process is conducted when cultural diversity is involved.
Traditional “seven steps of selling”
(Dubinsky, 1980/81)
Evolved selling process (Moncrief &
Marshall, 2005)
Prospecting Customer retention and deletion
Preapproach Database and knowledge management
Approach Nurturing the relationship (relationship
selling)
Presenting Marketing the product
Overcoming objections Problem-solving
Close Adding value/ satisfying needs
Follow-up Customer relationship maintenance
Table 1. clearly indicates differences in sales approach between two patterns that aims at conducting distinct B2B sales process. In the first step, Dubinsky’s sales process aims at finding new contacts through prospecting while the evolved selling process stresses on retaining profitable customers and deleting unnecessary customers or engagement that costs resources. The latter model accentuates on devoting further resources on existing clienteles as it positively affects the business performance. Consequently, providing the seller with loyal customers and potential prospects for future business. (Moncrief & Marshall, 2005.) The second step includes gaining knowledge on customers and their business environment to serve them better. In the latest model, use of technology to obtain information and manage it for future reference is highly emphasized. While in the previous model, most of it was done through phone calls and reviewing available data which was preserved manually. (Moncrief
& Marshall, 2005.) Even though the former approach has its relevance but in the international B2B sales process, it is even more vital for sellers to accumulate knowledge on buyers’
industry and specific business logic, to be more effective (Kaski et al., 2017). According to Kaski et al. (2017), strong knowledge of buyer’s industry will help sellers create trust and credibility in performing B2B sales process. Furthermore, securing the gained knowledge for further sales practices through technological tools will be an additional advantage.
The third step focusses on approaching the customer and nurturing the relationship. This is the stage where sellers narrow their efforts on relationship development with the key partners.
According to Moncrief and Marshall (2005), it is not a typical selling stage where sellers aim at closing the deal but it’s a phase where relationship enhancements are performed for long- term benefits (Foster & Cadogan, 2000). Relationship selling is an advanced selling approach whereas, in traditional selling, the approach is concentrated only on establishing suitable dialogues between buyer and seller for further sales practices (Moncrief & Marshall, 2005).
Particularly, in IB where geographical and cultural factors are involved, relationship building is the key. Under these circumstances, physical approaching is not always an option and therefore, it is important to have a well-established relationship so that B2B sales process can function smoothly.
The fourth step of the selling process in both approaches concerns familiarising the product to its customer. The difference, however, in each approach is the notion that surrounds the
product. In traditional selling, sellers present the product and communicate its benefits to the buyers. Whereas, in the evolved selling process, the aim is to market the product and create value proposition (Osterwalder & Pigneur, 2010) for buying customers. The latter model describes the role of a salesperson as most vital at this stage as it includes presenting the product and as well, performing marketing function at the selling level (Moncrief & Marshall 2005). Especially in cross-cultural negotiations, it is found that national culture affect decision making and information processing of buyers thus, making it more challenging for sellers to market the product than just selling it (Clark, 1990).
Once the seller has swiftly marketed the product to the buyer, the fifth step for the seller is to listen and understand buyer’s perspective. According to Kaski et al. (2017), many sellers fail to perform well at this stage because of the lack of ability to listen to their customers. At this stage, Moncrief & Marshall (2005) advice to provide solutions to the customer rather than overcoming objections, as directed by Dubinsky (1980/81). The concept of solution selling, exclusively, can be a tool at this stage that can provide a solution to international buyer’s problem (Moncrief & Marshall, 2005). A research from Agnihotri et al. (2017) clearly indicates that industrial buyers expect much more from their sales representative than just product selling.
The aim of most of the B2B sales processes is to reach closing of the deal. According to Dubinsky (1980/1981), reaching this stage is an indication of a successful completion of product demonstration and overcoming objections, thus, reaching to an understanding of selling and buying the product or service. Moncrief & Marshall (2005), however, replaces the step close by the step adding value. Satisfying customers’ needs is more significant than just securing a business deal and therefore, providing solutions that benefit buyers will ensure added value to a business deal as this is more likely to serve a lifetime value for customers.
Especially, when the business involves the international environment, providing a solution, or satisfying customers may take longer but the effort will eventually provide more value to both; seller and buyer.
Moncrief & Marshall (2005) concluded their evolved selling process by voicing the importance of customer relationship maintenance in a B2B sales process. However, the step is parallel to its counterpart in the traditional seven steps of selling, it encompasses much
more interaction and communication on the seller’s part. Kaski et al. (2017) state it as a relationship defining stage where most of the sellers fail to live up to the buyers’ expectation thus, ruining future business opportunities. Exclusively in international B2B sales, regular follow-up is the finest way to ensure accomplishment of future expectations of buyers which upsurges the credibility of the seller as a supplier (Kaski et al., 2017).
Dubinsky’s (1980/81) traditional seven steps of selling has been widely acknowledged and referred to as a B2B selling process model in various organizations to lead B2B sales operations. However, need for revised procedures that include features reflecting complex and dynamic (Åge, 2011) nature of selling was identified by Moncrief and Marshall (2005).
Hence, the call for an evolution of seven steps of selling was made.
The need also originates from the fact that many organizations are focussing on technological developments and long-lasting relationships with their customers for successful B2B sales (Moncrief & Marshall, 2005) and aiming at getting benefit from prevailing customer loyalty (Foster & Cadogan, 2000). Furthermore, these factors are also relevant from the perspective of this study as it focusses on serving the research purpose in a broader way that focusses on exploring the role of cultural difference in the international B2B sales process.
Based on the literature review of B2B selling and understanding drawn from it, this is thus concluded that previous studies on B2B selling did not emphasize the role of national culture in international B2B sales process. Also, in most of the previous studies, presentation of the product to the buyers is highly emphasized but little importance on seller’s ASB during presentation under culturally diverse selling situations is discussed (Plank & Dempsey, 1980;
Dubinsky, 1980/81; Shapiro & Posner, 2006; Ingram et al., 2008; Åge, 2011).
It is noteworthy that practice of ASB by salesperson occurs mostly at the time of product presentation (Spiro & Weitz, 1990) and hence, it is vital to understand the behaviour and need that triggers ASB within sellers. Therefore, the research aims at discussing the role of national culture and ASB of sellers in international B2B sales process when cultural diversity between the buyer and the seller is either low or high.
2.2 Adaptive selling
This section focusses on the theory of adaptive selling behaviour of sellers. Adaptive selling behaviour (ASB), as researchers have found, has a significant role in B2B sales process as it endorses long-term business relationship between the buyer and the seller and promotes increased sales performance (Spiro & Weitz, 1990; Boorom et al., 1998; Franke & Park, 2006; Rapp et al. 2008; Viio & Grönroos, 2014). Extant researches on seller’s adaptive behaviour during sales encounters has been widely discussed (Weitz et al., 1986; Spiro &
Weitz, 1990; Roman & Iacobucci, 2010) however, existing literature on the intercultural aspect of ASB in culturally diverse situations is limited (Bush & Ingram, 1996; Bush et al., 2001).
Adaptive selling, as defined by Spiro and Weitz (1990), is a behaviour consisting of gathering information on a potential customer, developing a sales strategy, communicating messages to perform this strategy, assessing the effect of these messages and finally, making modifications in the sales presentation based on this assessment. More precisely, adaptive selling involves understanding the selling situation and customers’ preference thus, enabling sellers to tailor the sales message as per customers’ needs and expectations (Kaynak et al., 2016).
The practice of adaptive selling in sales situations is important but it becomes more significant when adaptation requires cultural responsiveness (Bush & Ingram, 1996).
Specifically, communicating tailored messages based on the perceived requirement of a customer requires intercultural communication skills. Such as, Chinese buyers might focus on having more in-person interactions and frequent product presentations before concluding whereas, Germans might take relatively less time to reach a consensus with their business partners (Lewis, 2010). Thus, having knowledge of customer’s culture becomes rather substantial as it not only reduces the uncertain impact of cultural differences (Bush & Ingram, 1996) on B2B sales encounters but also, increases the certainty of better selling experience for both; the buyer and the seller. A visible lack of cultural knowledge in the adaptive behaviour of sellers might risk the relationship development between B2B sales participants.
Research confirms that in sales processes, both parties work in collaboration and share a mutual understanding of the sales scenario before reaching a consensus (Moncrief &
Marshall, 2005). Especially in B2B sales scenarios, a good business relationship is pivotal for long-term business prosperities and increased sales (Doyle & Roth, 1992). Consequently, these relations may require, to some extent, a specific adaptation from both parties, as the adaptive behaviour of sales participants ensures a healthier sales process. (Viio & Grönroos, 2014; Brennan & Turnbull, 1999). Adaptation, as researchers claim, is a common phenomenon in business relationships despite the fact who contributes more (Viio &
Grönroos, 2016). However, it is discovered that in a business relationship it is often the seller who is expected to adapt more to the B2B sales process while, the buyer plays a supportive role (Viio & Grönroos, 2014).
2.2.1 Seller’s adaptive selling behaviour
To understand the ASB of a seller, it is significant to understand why in the first place a seller or a salesperson adapts to his or her customer. Is it for a long-term business relationship or is it because of seller’s own interest to perform better and achieve set goals? It is evident that there is no best way of selling and therefore, a salesperson must adapt to the selling situation and to its potential customers (Roman & Iacobucci, 2010). Moreover, studies show that the practice of adaptive selling leads to better sales performance (Spiro & Weitz, 1990; Boorom et al., 1998; Franke & Park, 2006; Rapp et al. 2008) and customer retention (Roman &
Iacobucci, 2010). Many research have emphasised the significance of adaptation however, there is less knowledge available on the sales process adaptation, and especially, how relationship orientation of both seller and buyer affect sales process adaptation. (Viio &
Grönroos, 2016).
As researchers have established, adaptive selling is a behaviour that salespeople adopt to address the needs of customers by modifying their sales presentation (Spiro & Weitz, 1990;
Boorom et al., 1998; Franke & Park, 2006; Roman & Iacobucci, 2010). Therefore, an efficient salesperson should be able to observe and understand the sales environment and tailor the presentation to the customer’s exclusive requirements (Roman & Iacobucci, 2010).
In their research, Spiro & Weitz (1990) have communicated five facets that define the degree
to which salespeople practice ASB. More specifically, the features outline the extent to which salespersons alter their presentation while interacting with customers during a B2B sales process. The facets that encourage adaptive selling behaviour are:
1. recognition of the fact that different sales approaches are required for different customers
2. confidence in the ability to use a variety of approaches in different situations 3. confidence in the ability to alter approach during interaction with customers
4. collection and use of relevant information to facilitate adaption during the sales interaction
5. the actual use of different approaches in various situations
The first three facets, as discovered by Spiro & Weitz (1990), relate to a seller’s motivation to practice adaptive selling. It is significant for a seller to realize that each customer is unique and thus, requires different selling approach. This belief of the seller encourages him or her to alter the sales presentation in a hope that by doing so will lead to better sales (Spiro &
Weitz, 1990). Therefore, it is vital from the standpoint of the seller to acquire such confidence in his or her ability to evaluate the selling environment and custom an appropriate approach accordingly. Furthermore, a seller should be confident enough to observe and learn instantly if an approach is not effective enough and thus, be able to swiftly tailor the presentation according to buyers’ need. (Spiro & Weitz, 1990.)
The fourth facet pertains to a seller’s capability to practice ASB in various B2B sales situations. This competency requires the seller to acquire a vast knowledge structure of the sales situation and its customers. This also requires from the seller to wisely retrieve relevant information from his or her knowledge bank and wisely use it to an appropriate sales situation (Spiro & Weitz, 1990). As mentioned earlier, each customer is different and requires different selling approach and thus, it is vital for the seller to access and filter information and categorize customers depending on the selling environment and their individual needs, respectively. Sellers, possessing these capabilities are efficient and effective users of ASB, claims Spiro & Weitz (1990).
The fifth facet relates to the actual behaviour of a seller during customer interaction. It is believed that salespeople who have practised adaptive selling in the past are likely to practice it again in the future (Spiro & Weitz, 1990). More precisely, a salesperson who has practised ASB in the past is aware of the benefits and results it can potentially yield and therefore, will be prone to practice ASB in future sales scenarios as well.
These facets were the results of a research which was based on multidimensional scale ADAPTS, that measures the extent to which a salesperson practice adaptive selling. More precisely, the 16-item scale measured a salespersons’ motivation and ability to practice adaptive selling and their actual adaptive selling behaviour during customer interaction (Spiro & Weitz, 1990; Roman & Iacobucci, 2010).
Sujan et al. (1994) stated that the confidence that sellers have in their ability to use varied selling approaches and tailoring them to address customer needs, is referred to as adaptive selling confidence (ASC). More specifically, ASC is the realization of a seller that he or she will be able to involve in ASB during sales interactions. Roman & Iacobucci (2010), believed that the confidence sellers have in their ability to implement their roles effectively during a customer interaction, has a significant impact on their behaviour during the B2B sales process. Hence, based on their findings, the authors Roman & Iacobucci (2010), claimed that adaptive selling behaviour (ASB) is positively related to adaptive selling confidence (ASC).
Furthermore, a seller’s confidence of behaving adaptively in different selling situation has a positive impact on B2B sales process and sales performance (Spiro & Weitz, 1990; Franke
& Park, 2006; Rapp et al., 2008; Roman & Iacobucci, 2010). In addition, introducing adaptive selling in the B2B sales process can create a constructive impression on buyers, resulting in customer satisfaction with the product and the salesperson. This will in turn upsurge the possibility of a long-term business which will indirectly, but positively affect customer retention (Roman & Iacobucci, 2010). Therefore, to be successful a seller must be able to practice adaptive selling effectively and confidently.
2.2.2 Drivers of Adaptive Selling Behaviour
Sales practitioners and researchers have recognised the need for addressing each customer as a single entity and therefore, discovered the need for providing tailored solutions through the practice of adaptive selling (Spiro & Weitz, 1990; Roman & Iacobucci, 2010). Several studies concentrating on the types of adaptation (Schmidt et al., 2007) and its effects in a long run (Schindehutte &Morris, 2001) are made, however, the focus of this study is to understand the role of ASB of sellers in B2B sales process where cultural diversity is involved. Therefore, this section focuses on drivers that initiate ASB within sellers during international B2B sales interactions. Early research indicates factors that support the practice of ASB during and within international B2B sales interactions (Weitz et al., 1986; Spiro &
Weitz, 1990; Roman & Iacobucci, 2010), and is communicated below.
In their research, Weitz et al. (1986), concentrated on developing a framework for improving selling effectiveness which was focussed on the ability of the salesperson to adapt sales behaviour efficiently to meet the demands of B2B sales situation. This ability was considered pivotal as it indicated the degree to which sellers can take advantage and thus, utilize the unique communication elements of personal selling to provide solutions to their customers.
According to Weitz et al. (1986), factors that motivate the practice of ASB in salespeople are intrinsic reward orientation, the realization of strategy attribution during both; successful and unsuccessful sales interactions, and capabilities for effectively practising adaptive selling.
As mentioned earlier, the extent to which salespeople are oriented towards the intrinsic reward influences their practice of ASB during B2B sales interaction (Weitz et al., 1986).
Also, Spiro & Weitz (1990) and Roman & Iacobucci (2010) in their findings confirm the role of this antecedent as one of the drivers for adaptation in sellers. Intrinsically motivated salespeople find reward in sense of accomplishment, pride, satisfaction, and joy through achievement of their work (Ryan & Deci, 2000). More specifically, it is the psychological state of mind in a person that stimulates certain behaviour (Brown & Peterson, 1994).
Whereas, extrinsically motivated salespeople value external reward such as money, recognition, and promotion (Ryan & Deci, 2000). However, both intrinsic and extrinsic motivation contribute to the practice of adaptive selling and sales performance but it’s the
salesperson with high intrinsic motivation who has the strongest drive for practising ASB (Roman & Iacobucci, 2010).
Figure 1. Drivers of adaptive selling behaviour (ASB) as described by Weitz et al., 1986, Vol 50, p. 174-191
Weitz et al. (1986) argue that the practice of ASB within salespeople is highly affected by the acknowledgement of the applied sales strategy and its success or failure during B2B sales interactions. For example, an effective sales strategy provides confidence to the salesperson and this knowledge of a successful sales attempt consequently, acts as a motive for the salesperson for more effective sales adaptation in future. On the other hand, in a sales scenario, where a strategy fails to attract customer’s attention, indicates lack of interest in customer towards salesperson’s offering. Thus, the situation provides purpose to the salesperson to modify the current strategy by adapting to the sales environment and buyer’s requirements and accordingly, provide new sales perspectives to the customer. This realization that a seller encounters which force him or her to adapt to the selling environment to suit the buyer’s requirement is the adaptive selling behaviour of the seller.
Weitz et al. (1986) confirm that the capability to effectively practice adaptive selling motivates adaptive behaviour within sellers. Whereas some salespeople do possess personality traits such as self-monitoring, empathy, androgyny, and openness which are related to the practice of adaptive selling (Spiro & Weitz, 1990), but training salespeople to adapt in a various sales situation is often effective in improving their ASB capabilities (Weitz et al., 1986). Training increases the accuracy of salespeople in recognising the expectations
ASB
of their customers and thus, help them adapt accordingly (Weitz et al., 1986). The training can be either provided by experienced sales managers within the firm (Weitz et al., 1986) or through certain training programs specifically designed for increasing adaptive selling capabilities within a salesperson (Merrill & Reid, 1981).
However, to improve the adaptive selling competencies within a salesperson through training, integration, and accumulation of knowledge of the sales domain is required which as well is structurally categorised within the sellers (Weitz et al., 1986). Specifically, a salesperson should be able to categorise each received information under different sales situation category and use that knowledge in situations that belong to that category. For example, one of such sales training programs is Merrill’s and Reid’s (1981) communication style matrix training program which aims at improving salesperson’s performance through developing salesperson’s categorical knowledge structure. The training includes categorization of customers into four basic categories; driver, amiable, expressive, or analytical and then reorganising them in subcategories comprising of more detailed knowledge structure. This classification of customers based on categorised knowledge help salesperson understand customer behaviour and finally, help develop effective sales strategies to address each customer’s needs (Merrill & Reid, 1981).
Therefore, it can be concluded that salespeople who are intrinsically motivated are more likely to practice ASB in sales interactions than those salespeople who lack intrinsic motivation. Also, the realization of the fact whether the applied sales strategy during B2B sales process was successful or not could lead to the further practice of ASB in sellers. Other than these, training salespeople can also lead to sales adaptation as training, aimed at increasing sales efficiency of salespeople can directly influence the capabilities in salesperson for effectively practising adaptive selling in B2B sales situations.
Research confirms that every buyer is unique and therefore, requires different selling approach (Spiro & Weitz, 1990; Roman & Iacobucci, 2010). Selling, which is inspired by gathering information on potential customer’s needs and then using it wisely to tailor sales presentation that suits customer’s product perspective, is adaptive selling (Weitz et al., 1986).
Spiro & Weitz (1990), in their study, had highlighted certain aspects that encourage the practice of ASB however, they understated the role of cultural diversity that could be, as
well, the potential motive for sellers to practice adaptive selling in cross cultural B2B sales situations. The obvious research gap provides an opportunity to this study to explore ASB of a seller when national culture is involved more precisely, when cultural diversity between the buyer and the seller is either low or high. This finding can help future researchers understand the role that cultural diversity plays when sellers practice ASB that contributes to buyer-seller relationship.
2.3 National culture
Lewis (2010) describes culture as the behavioural characteristics of individuals that vary by geographical area. As Hofstede articulates (1980), it is the collective programming of the mind that differentiates members of one culture from the members of another cultural group.
There have been several types of research focusing on the importance of culture in international trade (Schirr & Schirr, 2012), however, knowledge on cultural factors vital for international B2B selling, is limited (Dubinsky, 1980/81; Moncrief & Marshall, 2005).
Especially, with the evolving concept of globalization and internationalization, not all findings concerning effects of culture on international business fits the scene. It was noted during the article review that not much research has been made on sales process between Europe and Asia where cultural diversity has been discussed. The concept has somehow been taken for granted that people belonging to certain continents tend to act culturally different because of their national origin (Lewis, 2010).
Extant research has been made on national culture on international business and its effect, however, the outcomes are inconsistent. While some researchers strongly believe in the influence that national culture exerts on international business relationships (Williams et al., 1998; Furrer et al., 2000; Hewett & Bearden, 2001;), other researchers do not consider national culture effecting cross-national trade relationships, at all (Pressey & Selassie, 2003).
National culture is the phenomenon that distinguishes or connects one nation from another (Hofstede, 1980) and construct a bridge for businesses to strengthen the globalization of world trade (Leung et al., 2005). Therefore, the current study focuses on broadening the in- depth understanding of the role of national culture in the international B2B sales process when cultural diversity between the buyer and the seller is either low or high.
