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Article
Publication date: 17 October 2019

Nguyen Thi Hong

This paper aims to investigate the mediating and moderating roles of mindfulness in explaining the influences of performance goal attributes (e.g. difficulty, specificity and…

Abstract

Purpose

This paper aims to investigate the mediating and moderating roles of mindfulness in explaining the influences of performance goal attributes (e.g. difficulty, specificity and performance pressure), moral justification and peer unethical sales behavior on unintentional unethical behavior in the sales context. In this study, goal attributes and peer unethical sales behavior are proposed to positively impact unethical selling behavior. Especially, mindfulness and moral justification are explored as mediators of these relationships. Moreover, mindfulness also moderates the influence of peer’s unethical sales behavior on moral justification.

Design/methodology/approach

A sample of 188 salespeople working in companies in Vietnam is included to test the conceptual framework. Partial least squares structural equations modeling and SmartPLS v3 were implemented to test the path model.

Findings

This study highlights the mediating and moderating roles of mindfulness in explaining unintentional unethical behavior. The findings indicate that sales performance goals negatively influence mindfulness and positively influence unethical behavior. In the mediating role, mindfulness mediates the relationships between goal attributes and moral justification. Further, moral justification also mediates the influence of mindfulness on unethical behavior. In the moderating role, mindfulness plays a significant impact on the positive relationships between peers’ unethical selling behavior and moral justification.

Research limitations/implications

Data are collected from salespeople in Vietnam. Therefore, the results are limited.

Practical implications

While many organizations use goal-setting as a tool to promote employees’ performance, it is warned that goal variables (e.g. difficulty, specificity and performance pressure) may lead to unethical behavior. Interestingly, people may fail to notice moral dilemmas because of focusing on the goals. Furthermore, ethical erosion in organizations may spur unethical selling behavior. Therefore, salespeople sell unethically without intention to do so. Proposing mindfulness as self-regulation, these findings may explain the reasons people display unintentional unethical behavior. Therefore, it is crucial to set performance goals for employees not only to promote their performance but also to prevent unethical behaviors.

Social implications

By focusing on the roles of mindfulness that foster unintended unethical practices, this study provides important implications for governments and policymakers. For example, governments may emphasize ethical codes to clearly definite which practices are unethical. Moreover, ethics training should be considered to enhance ethical cognition in people.

Originality/value

Emphasizing unintentional unethical selling behaviors in sales context, this study tests a research framework which highlights the roles of mindfulness in explaining the dark effects of performance goals on people’s cognition and behavior. Therefore, this paper contributes to a deeper understanding of ethical blind spots in people’s cognition.

Details

International Journal of Ethics and Systems, vol. 36 no. 1
Type: Research Article
ISSN: 2514-9369

Keywords

Book part
Publication date: 27 April 2021

G. Arun and C. G. Manoj Krishnan

If any organization wants to be globally recognized leadership plays an important role. This chapter deals with the leadership failure in creating good salesperson behavior in…

Abstract

If any organization wants to be globally recognized leadership plays an important role. This chapter deals with the leadership failure in creating good salesperson behavior in India’s pharmaceutical industry. There are four types of salesperson’s behavior: selling orientation, customer orientation, adaptive selling, and unethical selling. Selling oriented and unethical selling behaviors negatively impact customer trust and customer value, while customer orientation and adaptive are more positive. This chapter explores how senior managers can create good organization culture and organization climate by creating positive sales behavior. This chapter will be an eye opener to many first-line managers for helping their salespersons to practice customer orientation and adaptive selling behavior.

Details

When Leadership Fails: Individual, Group and Organizational Lessons from the Worst Workplace Experiences
Type: Book
ISBN: 978-1-80043-766-1

Keywords

Article
Publication date: 23 November 2018

Laura Munoz and Michael Mallin

The purpose of this paper is to explore the relationship between salesperson role perceptions and use of neutralization techniques, given the relationship orientation of the…

Abstract

Purpose

The purpose of this paper is to explore the relationship between salesperson role perceptions and use of neutralization techniques, given the relationship orientation of the salesperson. Direct relationships between salesperson role conflict, role ambiguity, role task self-efficacy and a salesperson’s propensity to use neutralizations to attribute their unethical selling behavior are tested. The moderating effects of role-relationship orientation on the aforementioned relationships are also explored

Design/methodology/approach

Survey data were collected from 163 (cross-industry, B2B/B2C non-retail) salespeople. Results were analyzed and seven hypotheses were tested using SmartPLS to estimate and evaluate a (partial least squares) structural model.

Findings

The study findings conclude that role ambiguity, role task self-efficacy and role relationship orientation directly impact a salesperson’s tendency to use neutralization techniques to justify unethical sales behavior. Role relationship orientation serves to moderate the relationship between role conflict and neutralization use.

Research limitations/implications

This research integrates attribution and role theories to isolate the conditions where salespeople are prone to use neutralization techniques to justify their unethical behavior. Salesperson role relationship orientation is explored to understand the moderating effects on the salesperson role–neutralization relationships.

Practical implications

Sales managers are provided guidance (e.g. training and coaching) to help salespeople navigate feelings of negative role perceptions (role conflict, role ambiguity, role self-efficacy) to minimize the impact on justification of unethical sales behaviors.

Originality/value

This research builds on the sales and ethics literatures by incorporating role and attribution theory to better understand how salespeople approach dealing with their own unethical behavior and the implications on maintaining relationships with their customers.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 29 September 2023

Tyler Hancock, Michael L. Mallin, Ellen B. Pullins and Catherine M. Johnson

This study aims to use cognitive appraisal theory to explain how organizational disruption influences the development of envy resulting in unethical selling practices, turnover…

Abstract

Purpose

This study aims to use cognitive appraisal theory to explain how organizational disruption influences the development of envy resulting in unethical selling practices, turnover intentions and a reduction in customer orientation that causes disruption to impact customer relationships. This research helps to address drivers of salesperson envy, the potential disruptions to customer relationships and the required need to invest in psychological resources to offset these negative effects.

Design/methodology/approach

A total of 211 salespeople were surveyed to test the hypotheses. First, the measurement model was validated using a confirmatory factor analysis. Next, the hypotheses were tested using structural equation modeling AMOS 27. Mediation and moderated mediation were tested using the bootstrap method. Estimands were created within AMOS to test the indirect and interaction effects in the full model. A post hoc analysis further informed the findings.

Findings

The results show that the development of envy increases under conditions of organizational disruptions, leading to potential customer disruptions through turnover intentions, unethical selling behaviors and a reduction in customer orientation. In addition, the mediation analysis shows that envy drives the relationship between organizational disruption and unethical selling, turnover intentions and customer orientation through fully mediated relationships. Finally, the interaction effects between organizational disruption and psychological capital show high levels of psychological capital help to decrease the development of envy, thus reducing unethical selling behaviors and turnover intentions while increasing customer orientation.

Practical implications

The study provides practitioners with insights into how to reduce envy by investing in the psychological capital of their salesforce. The study also provides suggestions for handling disruptions and managing envy to prevent actions that act to damage customer relationships.

Originality/value

Salespeople are likely to encounter organizational disruption. Sales managers need to be prepared to manage the outcomes of organizational disruption as it impacts the sales force. Understanding how disruptions impact customer relationships through envy is an important yet under-explored topic. This research adds to and expands the sales literature using cognitive appraisal theory to help address drivers of salesperson envy and its potentially negative impact on customer relationships and shows the required need to invest in psychological resources to offset these negative effects. The study also helps expand the recent focus on worldwide disruptions by adopting another context for disruption stemming from organizational disruption.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 21 November 2022

Amitabh Anand, Melanie Bowen and Deva Rangarajan

Despite the prominence of ethics in mainstream marketing and sales literature, studies on the role of unethical sales practices remain sparse. As a result, we sought to fill this…

Abstract

Purpose

Despite the prominence of ethics in mainstream marketing and sales literature, studies on the role of unethical sales practices remain sparse. As a result, we sought to fill this void by reviewing and integrating the available research on unethical sales practices.

Design/methodology/approach

A systematic methodology is used to review the literature. The data study covered peer-reviewed journal publications from 2008 through 2020.

Findings

Our investigation uncovered patterns (situational ethical behavior, ethical sales organizational culture, ethical leadership of salespeople, and unethical behavior). We suggest promising avenues for further research by concluding our methodological and theoretical contribution.

Originality/value

Today’s sales profession is continually evolving, putting increased demand on salespeople to adapt to new norms. Salespeople may be enticed to engage in unethical sales tactics in these situations, endangering not just themselves, but also their organizations and clients. This research contributes to the unique nature of ethics among sales people.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 9
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 7 September 2012

Ho Taek Yi, Alan J. Dubinsky and Chae Un Lim

The purpose of the article is to present and test a model regarding important factors that may help reduce unethical behavior (i.e. misselling) of salespeople in the financial…

2397

Abstract

Purpose

The purpose of the article is to present and test a model regarding important factors that may help reduce unethical behavior (i.e. misselling) of salespeople in the financial services industry.

Design/methodology/approach

To test the hypotheses, telemarketers from the life insurance industry in South Korea were surveyed (n=204).

Findings

Using structural equation modeling, the results indicate that: ethics training is positively related to salesperson ethical attitude; ethical climate is positively related to salesperson ethical attitude; selling pressure is unrelated to ethical attitude; competitive intensity is positively related to salesperson ethical attitude; competitive intensity is unrelated to misselling; and misselling is inversely related to salesperson ethical attitude, positively associated with product complexity, and positively related to product variety.

Research limitations/implications

Future empirical work could: investigate different variables from those utilized in this study; consider inter‐country and gender differences; use alternate sources of data to examine stability of the findings; and employ samples of firms in other industries and other marketing channels. Limitations include a limited number of study variables, use of solely the telemarketing channel for life insurance, a preponderance of female respondents, and potential for socially desirable responses.

Practical implications

Management should seek to maintain a high ethical attitude among sales agents to help foster a reduction in unethical behavior. Sales personnel should receive extensive ethics training to help enhance their ethical attitude in the job. Salespeople should also seek to establish and maintain long‐term relationships with their customers and to pursue long‐term profitability. Sales managers should seek to educate consumers about the various types of financial products, their respective strengths and weaknesses, and the appropriate conditions under which they should be purchased.

Originality/value

The potential for financial services industry salespeople to behave unethically has received extensive research attention. A key area, though, which has been virtually ignored is antecedents of misselling of financial services. The article seeks to address partially this gap in the literature.

Article
Publication date: 8 April 2019

Chia-Yi Cheng and Tzu-Ping Ho

Prior studies have extensively explored individual examples of unethical behavior in sales organizations but focused little on repeated violation (RV) of ethical codes…

Abstract

Purpose

Prior studies have extensively explored individual examples of unethical behavior in sales organizations but focused little on repeated violation (RV) of ethical codes, particularly when managers develop salesforces. Based on social learning theory (SLT), the authors propose a multilevel model of RV antecedents and suggest that organizational influence (social cues and modeling) and individual factors (observer characteristics and behavioral outcomes) affect RV, especially with increasing recruitment of salespeople.

Design/methodology/approach

Using data from a leading financial company in Taiwan, the authors analyzed 1,231 records of salespeople’s misbehavior through logistic regression and average marginal effects.

Findings

Modeling in the organization (i.e. peer misconduct), observer characteristics (i.e. experience concerning job tenure and prior violations) and behavioral outcomes (i.e. information concealment violations) were all found to affect the likelihood of RV, and the interactional effect of organizational size was confirmed.

Research limitations/implications

This study contributes to ethical decision-making theory by explaining aspects of RV through SLT. Its multilevel model, integrated with organizational strategy theories, adds an SLT-focused paradigm into unethical behavior research by considering vicarious learning and self-learning, alongside the reciprocal determinism of cognition, behavior, and environment.

Practical implications

Managers should consider socially based patterns of violation when initiating a sales business plan. The chances of RV are increased by unethical models in the organization and offenders’ potential for violations, which is reinforced by social environment.

Originality/value

This study clarified the key drivers of RV decision-making using SLT and identified an effective sales development strategy to maintain an ethically responsible salesforce.

Details

European Journal of Marketing, vol. 53 no. 4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 17 June 2021

Kwan Soo Shin, Fortune Edem Amenuvor, Henry Boateng and Richard Basilisco

The current study aims to empirically examine the impact of formal salesforce control systems on salespeople and customer behavior.

Abstract

Purpose

The current study aims to empirically examine the impact of formal salesforce control systems on salespeople and customer behavior.

Design/methodology/approach

Data are collected from 704 salespeople and their respective visiting customers (704) in Ghana. The suggested hypotheses are tested through the structural equation (SEM) modeling technique.

Findings

The study results show that all three formal control mechanisms have positive and significant effects on customer-directed problem-solving and adaptive selling behaviors. Similarly, the study finds that salespeople's customer-directed problem-solving behavior increases, respectively, customer-directed opportunism and relationship continuity. Adaptive selling behavior also has significant positive effects on both customer-directed opportunism and relationship continuity, respectively.

Practical implications

The study offers practical and theoretical insights into understanding salesforce control dynamics, customer-directed opportunism, adaptive selling behavior, customer-directed problem-solving behavior and continuity of relationships. The results also have significant consequences for sales organizations as they can help sales managers decide on the best form of salesforce control systems to deploy.

Originality/value

The current research demonstrates how control mechanisms can influence both adaptive selling and customer-directed problem-solving behaviors and how these could generate both customer-directed opportunism and relationship continuity.

Details

Marketing Intelligence & Planning, vol. 39 no. 7
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 11 July 2016

Lu-Ming Tseng, Yue-Min Kang and Chi-Erh Chung

This case study aim to investigate the impacts of insurance agents’ positive attitude toward inappropriate product recommendations on the insurance agents’ intention to make the…

1308

Abstract

Purpose

This case study aim to investigate the impacts of insurance agents’ positive attitude toward inappropriate product recommendations on the insurance agents’ intention to make the inappropriate product recommendations. This study further checks how the attitude and intention could be enhanced by the insurer’s manipulation of sales compensations, the agents’ perception of information asymmetry between customers and insurance agents and the insurer’s sales orientation.

Design/methodology/approach

Full-time insurance agents from the life insurance industry in Taiwan were surveyed. To test the hypotheses, hierarchical regression analyses were used in the study.

Findings

The main results showed that the respondents’ positive attitude toward inappropriate product recommendations was the influential predictor of the respondents’ behavioral intention. Nevertheless, the positive attitude was enhanced by the manipulation of sales compensations and the insurer’s sales orientation.

Originality/value

Very few studies have investigated the relationships among information asymmetry between customers and agents, management’s sales orientation, management’s manipulation of sales compensations and the problems of selling unsuitable insurance products to customers. This study may contribute to the relevant literature by discussing these issues.

Details

Journal of Financial Regulation and Compliance, vol. 24 no. 3
Type: Research Article
ISSN: 1358-1988

Keywords

Article
Publication date: 3 June 2021

Li-Tzu Lai, Jui-Yun Wu and Lu-Ming Tseng

Life insurance salespeople are hired to pursue the best interests of life insurers on the one hand, the salespeople are also expected to pursue the best interests of customers on…

Abstract

Purpose

Life insurance salespeople are hired to pursue the best interests of life insurers on the one hand, the salespeople are also expected to pursue the best interests of customers on the other hand. However, the best interests of life insurers are not necessarily consistent with the best interests of customers. This study aims to investigate the influences of interest conflicts on the life insurance salespeople’s ethical attitude and ethical intention by focusing on the role of ethical leadership and ethical training.

Design/methodology/approach

Four types of interest conflicts are studied. Questionnaires are administered to a total of 757 full-time life insurance salespeople. Data analysis is performed by using analysis of variance tests and partial least squares regression.

Findings

The main results indicate that the types of interest conflicts change the life insurance salespeople’s ethical attitude and ethical intention. Moreover, ethical training could make the life insurance salespeople become more concerned about the interests of customers, but not the interests of life insurers. The results also challenge a belief that ethical leadership and ethical training will often have direct, consistent and significant impacts on the ethical attitude and ethical intention of life insurance salespeople.

Originality/value

Interest conflict is an important issue in the literature on financial regulation. The potential for life insurance salespeople to behave unethically has also received extensive attention by researchers. This study provides clarification of the relationships among interest conflicts, ethical leadership, ethical training and ethical decision-making of life insurance salespeople. This is the first study that analyzes the relationships. The results of this study may provide some contributions to the relevant literature.

Details

Journal of Financial Regulation and Compliance, vol. 29 no. 4
Type: Research Article
ISSN: 1358-1988

Keywords

1 – 10 of over 3000