Customer Loyalty to Whom? Managing the Benefits and Risks of Salesperson-Owned Loyalty
Abstract
In a study of 362 buyer–salesperson dyads using triadic data (from buyer, salesperson, and sales manager), the authors examine both a customer's overall loyalty to the selling firm and the customer's loyalty vested specifically in his or her salesperson. They find that only salesperson-owned loyalty, a newly identified construct, directly affects the more tangible seller financial outcomes of sales growth and selling effectiveness, whereas both salesperson-owned loyalty and loyalty to the selling firm increase the customer's willingness to pay a price premium. A longitudinal study verifies that the positive effect of salesperson-owned loyalty on sales growth persists over time. However, because salesperson-owned loyalty simultaneously increases the seller's risk of losing business if the salesperson defects to a competitor, managers need to manage effectively the benefit–risk trade-off. Increasing relationship-enhancing activities and value received by the customer builds both salesperson-owned loyalty and loyalty to the selling firm. The loyalty-building impact of relationship-enhancing activities is moderated by selling-firm consistency and by the selling firm's and salesperson's loyalty-capturing strategies.
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Customers who enjoy social benefits due to friendly relations with employees often express loyalty toward a particular employee, which makes it harder to switch.
“Similarly, customers who enjoy social benefits due to friendly relations with employees often express loyalty toward a particular employee (Bove and Johnson 2006; Palmatier et al. 2007), which makes it harder to switch (Jones et al. 2002).”
From Understanding and managing customer relational benefits in services: a meta-analysis (2020) · cites this paper as Palmatier et al. 2007
This meta-analysis includes only customer loyalty toward an organization because an insufficient number of studies examine customer loyalty toward a frontline employee.
“this meta-analysis includes only customer loyalty toward an organization as an insufficient number of studies examine customer loyalty toward a frontline employee.”
From Understanding and managing customer relational benefits in services: a meta-analysis (2020) · cites this paper as Palmatier et al. (2007)
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ResultCustomer involvement in new product development in B2B: The role of sales
Rocca, A. L., Moscatelli, P., Perna, A., & Snehota, I. (2016) · Industrial Marketing Management · doi:10.1016/j.indmarman.2016.05.014 · Cited by 123 · see citing works
Gall‐Ely, M. L. (2009) · Recherche et Applications en Marketing (English Edition) · doi:10.1177/205157070902400205 · Cited by 122 · see citing works
Ozdemir, V. E., & Hewett, K. (2010) · Journal of International Marketing · doi:10.1509/jimk.18.1.41 · Cited by 120 · see citing works
“Palmatier, Scheer, and Steenkamp (2007) similarly provide evidence for the existence of salesperson-owned intentions and its effect on tangible outcomes.”
BackgroundOmni-channel research framework in the context of personal selling and sales management
Cummins, S., Peltier, J. W., & Dixon, A. L. (2016) · Journal of Research in Interactive Marketing · doi:10.1108/jrim-12-2015-0094 · Cited by 119 · see citing works
Panagopoulos, N. G., Rapp, A. A., & Ogilvie, J. L. (2017) · Journal of Marketing · doi:10.1509/jm.15.0342 · Cited by 118 · see citing works
Performance Implications of Mismatched Governance Regimes Across External and Internal Relationships
Kumar, A., Heide, J. B., & Wathne, K. H. (2011) · Journal of Marketing · doi:10.1509/jm.75.2.1 · Cited by 114 · see citing works
The Social Dimension of Service Interactions
Henkel, A. P., Boegershausen, J., Rafaeli, A., & Lemmink, J. G. A. M. (2017) · Journal of Service Research · doi:10.1177/1094670516685179 · Cited by 114 · see citing works
Epler, R. T., & Leach, M. P. (2021) · Industrial Marketing Management · doi:10.1016/j.indmarman.2021.04.002 · Cited by 116 · see citing works
Marcos, A. M. B. D. S. B. D. F., & Coelho, A. (2021) · The TQM Journal · doi:10.1108/tqm-10-2020-0236 · Cited by 153 · see citing works
“The WOM measures were adapted from Palmatier et al. (2007).”
Stakeholder Relationship Bonds
Bosse, D. A., & Coughlan, R. S. (2015) · Journal of Management Studies · doi:10.1111/joms.12182 · Cited by 116 · see citing works
“Palmatier et al. (2007), for example, find that buyers who want to stay engaged with certain salespeople positively affect the selling firm’s sales growth and selling effectiveness.”
Hartmann, N. N., & Rutherford, B. N. (2015) · Industrial Marketing Management · doi:10.1016/j.indmarman.2015.07.017 · Cited by 112 · see citing works
Itani, O. S., Haddad, R. E., & Kalra, A. (2019) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2019.101980 · Cited by 112 · see citing works
Zablah, A. R., Carlson, B. D., Donavan, D. T., Maxham, J. G., & Brown, T. J. (2016) · Journal of Applied Psychology · doi:10.1037/apl0000079 · Cited by 110 · see citing works
Salespeople as knowledge brokers: a review and critique of the challenger sales model
Rapp, A. A., Bachrach, D. G., Panagopoulos, N. G., & Ogilvie, J. L. (2014) · Journal of Personal Selling and Sales Management · doi:10.1080/08853134.2014.908126 · Cited by 109 · see citing works
Habel, J., Kassemeier, R., Alavi, S. H., Haaf, P., Schmitz, C., & Wieseke, J. (2019) · Journal of Personal Selling and Sales Management · doi:10.1080/08853134.2019.1631174 · Cited by 107 · see citing works
“In particular, as salespeople are the key intermediary between the firm and customers, they have the crucial role to cater to customers’ interests throughout the sales process (Sirdeshmukh, Singh, and Sabol 2002; Palmatier, Scheer, and Steenkamp 2007).”
BackgroundEthical Salesperson Behavior in Sales Relationships
Hansen, J. D., & Riggle, R. J. (2009) · Journal of Personal Selling and Sales Management · doi:10.2753/pss0885-3134290204 · Cited by 107 · see citing works
Stock, R., de Jong, A., & Zacharias, N. A. (2017) · Journal of Product Innovation Management · doi:10.1111/jpim.12338 · Cited by 114 · see citing works
Lee, L. W. Y., Tang, Y., Yip, L. S. C., & Sharma, P. (2017) · Journal of Business Research · doi:10.1016/j.jbusres.2017.07.017 · Cited by 107 · see citing works
“This echoes the phenomenon of sales-loyalty (Palmatier et al., 2007) being an even more important consideration for sales management strategies in emerging markets such as China.”
BackgroundIntroducing branded communities in sport for building strong brand relations in social media
Popp, B., & Woratschek, H. (2015) · Sport Management Review · doi:10.1016/j.smr.2015.06.001 · Cited by 104 · see citing works
“Thus, in our research setting, we differentiate between two different “owners” of loyalty (Palmatier, Scheer, & Steenkamp, 2007).”
BackgroundBrashear, T. G., Vilaça, D., Boles, J. S., Ribeiro, Á. H. P., & Monteiro, P. R. R. (2010) · Industrial Marketing Management · doi:10.1016/j.indmarman.2010.09.008 · Cited by 101 · see citing works
“Consistency occurs for example, when the contact person or salespeople's attitudes tends to be similar to the assessments made of the organization as a whole (Iacobucci & Ostrom, 1996).”
BackgroundInfluentialWorkplace isolation: salespeople and supervisors in USA
Mulki, J. P., & Jaramillo, F. (2011) · The International Journal of Human Resource Management · doi:10.1080/09585192.2011.555133 · Cited by 102 · see citing works
“Voluntary turnover can also reduce revenue since organizations lose some customers who follow salespeople to their new organization (Palmatier, Scheer and Steenkamp 2007 ).”
BackgroundHu, B., Liu, J., & Zhang, X. (2020) · International Journal of Contemporary Hospitality Management · doi:10.1108/ijchm-10-2019-0822 · Cited by 101 · see citing works
Anaza, N. A., & Rutherford, B. N. (2012) · Journal of service management · doi:10.1108/09564231211269801 · Cited by 104 · see citing works
Identifying effective hunters and farmers in the salesforce: a dispositional–situational framework
DeCarlo, T. E., & Lam, S. K. (2015) · Journal of the Academy of Marketing Science · doi:10.1007/s11747-015-0425-x · Cited by 97 · see citing works
Badrinarayanan, V. A., & Laverie, D. A. (2011) · Journal of Personal Selling and Sales Management · doi:10.2753/pss0885-3134310202 · Cited by 93 · see citing works
Sport event innovativeness: Conceptualization, measurement, and its impact on consumer behavior
Yoshida, M., James, J. D., & Cronin, J. J. (2012) · Sport Management Review · doi:10.1016/j.smr.2012.03.003 · Cited by 91 · see citing works
Lussier, B., & Hartmann, N. N. (2016) · Industrial Marketing Management · doi:10.1016/j.indmarman.2016.08.009 · Cited by 93 · see citing works
Hartmann, E., & de Grahl, A. (2011) · Journal of Supply Chain Management · doi:10.1111/j.1745-493x.2011.03228.x · Cited by 89 · see citing works
The impact of sales encounters on brand loyalty
Brexendorf, T. O., Mühlmeier, S., Tomczak, T., & Eisend, M. (2010) · Journal of Business Research · doi:10.1016/j.jbusres.2009.10.011 · Cited by 91 · see citing works
Hartmann, E., & de Grahl, A. (2011) · Gabler Verlag eBooks · doi:10.1007/978-3-8349-7084-8_2 · Cited by 87 · see citing works
A model of negotiation issue–based tactics in business-to-business sales negotiations
Geiger, I. (2017) · Industrial Marketing Management · doi:10.1016/j.indmarman.2017.02.003 · Cited by 87 · see citing works
Boundary spanner relational behavior and inter-organizational control in supply chain relationships
Dekker, H. C., Donada, C., Mothe, C., & Nogatchewsky, G. (2018) · Industrial Marketing Management · doi:10.1016/j.indmarman.2018.11.010 · Cited by 89 · see citing works
Aljukhadar, M., Sénécal, S., & Ouellette, D. (2010) · International Journal of Electronic Commerce · doi:10.2753/jec1086-4415140404 · Cited by 91 · see citing works
“In addition, consumers are stated to be affected more by an interpersonal relationship with the firm representatives than by a direct relationship with the firm [52].”
BackgroundManaging brand associations to drive customers’ trust and loyalty in Vietnamese banking
Phan, K. N., & Ghantous, N. (2013) · International Journal of Bank Marketing · doi:10.1108/ijbm-04-2013-0038 · Cited by 86 · see citing works
The road to customer loyalty paved with service customization
Bock, D. E., Mangus, S. M., & Folse, J. A. G. (2016) · Journal of Business Research · doi:10.1016/j.jbusres.2016.06.002 · Cited by 85 · see citing works
Schivinski, B., Muntinga, D. G., Pontes, H. M., & Łukasik, P. (2019) · Journal of Strategic Marketing · doi:10.1080/0965254x.2019.1572641 · Cited by 84 · see citing works
The mediating effects of customers’ intimacy perceptions on the trust-commitment relationship
Ponder, N., Holloway, B. B., & Hansen, J. D. (2016) · Journal of Services Marketing · doi:10.1108/jsm-04-2014-0117 · Cited by 84 · see citing works
Do loyal customers really pay more for services?
Umashankar, N., Bhagwat, Y., & Kumar, V. (2016) · Journal of the Academy of Marketing Science · doi:10.1007/s11747-016-0491-8 · Cited by 83 · see citing works
Homburg, C., Fürst, A., & Koschate, N. (2009) · Journal of the Academy of Marketing Science · doi:10.1007/s11747-009-0172-y · Cited by 82 · see citing works
“This approach is in line with recommendations in the methodology literature (Aiken and West 1993; Cohen et al. 2003 )a nd is comparable to similar approaches, such as multi-group causal analysis, of previous marketing studies (e.g., Licata et al. 2003; Palmatier et al. 2007 ).”
ResultService loyalty: accounting for social capital
Jones, T., & Taylor, S. F. (2012) · Journal of Services Marketing · doi:10.1108/08876041211199733 · Cited by 87 · see citing works
“The link between customer loyalty to the service employee and customer loyalty to the service firm has been well established in previous work (Palmatier et al., 2007) and there is an unquestionable link between firm loyalty and firm value.”
Background
- Authors
- Palmatier, R. W., Scheer, L. K., & Steenkamp, J.-B. E. M.
- Affiliations
- University of Cincinnati (US)
- University of Missouri (US)
- University of North Carolina at Chapel Hill (US)
- Corresponding author
- Palmatier, Robert W.
- Scheer, Lisa K.
- Steenkamp, Jan-Benedict E.M.
- Venue
- Journal of Marketing Research
- Publisher
- SAGE Publications
- Published
- 2007-05
- Volume
- 44
- Issue
- 2
- Pages
- 185-199
- ISSN
- 0022-2437 (ISSN-L)
- 1547-7193
- OpenAlex
- W2099463741
- Cited by
- 555
- References
- 42
- Citations by year
- 2026: 9 · 2025: 16 · 2024: 16 · 2023: 25 · 2022: 31 · 2021: 31 · 2020: 29 · 2019: 34 · 2018: 38 · 2017: 36 · 2016: 43 · 2015: 40 · 2014: 41 · 2013: 33 · 2012: 32
- FWCI
- 44.17
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Marketing Research (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Customer Service Quality and Loyalty
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Behavior in Brand Consumption and Identification
- Social Sciences › Business, Management and Accounting › Marketing › Consumer Market Behavior and Pricing
- Keywords
- customer loyalty, sales growth, price premium, risk-benefit trade-off
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