Should Firms Encourage Salespeople to Promote House Brands in Customer Interaction? An Empirical Investigation of Financial Out-Comes and Customer Response

Schmalenbach Business Review, Vol. 64, October 2012, pp 331-363

33 Pages Posted: 2 Dec 2012

See all articles by Thomas Rajab

Thomas Rajab

affiliation not provided to SSRN

Jan Wieseke

University of Marburg - Faculty of Psychology

Florian Kraus

University of Mannheim

Date Written: 2012

Abstract

Many retailers and service providers sell their house brands side by side with competing brands of other suppliers. Although many firms encourage their salespeople to favor in-house products when serving customers, investigators have failed to examine the effect this practice may have on customers. This study combines archival and survey data from the tourism sector to explore this research void. First, we analyzethe effect of salespeople’s intentions to promote house brands (IHB) on stores’ housebrand sales, a link previous studies have not explicitly tested. Second, drawing on attribution theory, we hypothesize that salespeople’s IHB will have a negative impact on customers’ perceptions of salesperson customer orientation and on customers’ store loyalty. We find that salespeople’s IHB positively influences stores’ house-brand sales and negatively influences both customer variables. Further analysis shows that the moderation effects of adaptive selling, sales empathy, and customer familiarity with the salesperson can mitigate IHB’s negative impact on customer response. These findings offer a new perspective in the discussion of the benefits and detriments of salespeople’s promotions of in-house products.

Keywords: Adaptive Selling, Empathy, Hierarchical Linear Modeling, House Brands, Personal Selling, Relationship Marketing, Store Loyalty

JEL Classification: M12, M31

Suggested Citation

Rajab, Thomas and Wieseke, Jan and Kraus, Florian, Should Firms Encourage Salespeople to Promote House Brands in Customer Interaction? An Empirical Investigation of Financial Out-Comes and Customer Response (2012). Schmalenbach Business Review, Vol. 64, October 2012, pp 331-363. Available at SSRN: https://ssrn.com/abstract=2183199

Thomas Rajab (Contact Author)

affiliation not provided to SSRN ( email )

Jan Wieseke

University of Marburg - Faculty of Psychology ( email )

Gutenbergstr. 18
35032 Marburg
Germany
06421 28 26598 (Fax)

Florian Kraus

University of Mannheim ( email )

Germany
+49.621.181 2662 (Phone)
+49.621.181 2672 (Fax)

HOME PAGE: http://kraus.bwl.uni-mannheim.de/de/team/prof_dr_florian_kraus/

Register to save articles to
your library

Register

Paper statistics

Downloads
50
Abstract Views
471
PlumX Metrics