Skip to main content
Log in

The effects of perceived salesperson listening effectiveness in the financial industry

  • Original Article
  • Published:
Journal of Financial Services Marketing Aims and scope Submit manuscript

Abstract

The goals of this paper are twofold: (a) to test the multidimensional structure of the listening construct and (b) to identify major consequences of perceived salesperson listening effectiveness. A survey was completed by more than 400 buyer–seller dyads. Following structural equations modelling analyses, results show that customers’ perceptions of listening effectiveness is positively (and strongly) associated with service quality, trust, satisfaction, word-of-mouth propensity, purchase intentions and sales performance. Numerous managerial implications are proposed to entice organisations to emphasise salespeople listening skills as a competitive advantage. Research opportunities are also presented to accrue academic efforts in understanding the truly rich role of listening.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Figure 1

Similar content being viewed by others

References

  • Lapp, C. L. (1985) Are you listening? American Salesman 30 (November): 26–30.

    Google Scholar 

  • Ingram, T. N., Schwepker Jr, C. H. and Hutson, D. (1992) Why salespeople fail? Industrial Marketing Management 21 (August): 225–230.

    Article  Google Scholar 

  • Wall Street Journal. (1990) Talk, talk, talk, talk: Try a little listening. 22 March: pp. B1.

  • Morgan, F. W. and Stoltman, J. J. (1990) Adaptive selling – Insights from social cognition. Journal of Personal Selling and Sales Management 10 (Fall): 43–54.

    Google Scholar 

  • Comer, L. B. and Drollinger, T. (1999) Active empathetic listening and selling success: A conceptual framework. Journal of Personal Selling and Sales Management 19 (1): 15–29.

    Google Scholar 

  • Ramsey, R. P. and Sohi, R. S. (1997) Listening to your customers: The impact of perceived salesperson listening behavior on relationship outcomes. Journal of the Academy of Marketing Sciences 25 (Spring): 127–137.

    Article  Google Scholar 

  • De Ruyter, K. and Wetzels, M. G. M. (2000) The impact of perceived listening behavior on voice-to-voice service encounters. Journal of Service Research 2 (3): 276–283.

    Article  Google Scholar 

  • Wolvin, A. D. and Coakley, C. G. (1985) Listening. Dubuque, IA: Wm C Brown.

    Google Scholar 

  • Glenn, E. C. (1989) A content analysis of fifty definitions of listening. International Journal of Listening 3: 21–31.

    Article  Google Scholar 

  • Cegala, D. J, Savage, G. T., Brunner, C. C. and Conrad, A. B. (1982) An elaboration of the meaning of interaction involvement. Communication Monographs 49 (December): 229–248.

    Article  Google Scholar 

  • Steil, L. K., Barker, L. L. and Watson, K. W. (1983) Effective Listening: Key to Your Success. Reading, MA: Addison-Wesley.

    Google Scholar 

  • Brownell, J. (1994) Managerial listening and career development in the hospitality industry. International Journal of Listening 8: 31–49.

    Article  Google Scholar 

  • Anderson, C. M. and Mathew, M. M. (1995) The effects of communication motives, interaction involvement, and communication loneliness on satisfaction. Small Group Research 26 (1): 118–137.

    Article  Google Scholar 

  • Boorom, M. L., Goolsby, J. R. and Ramsey, R. P. (1998) Relational communication traits and their effect on adaptiveness and sales performance. Journal of the Academy of Marketing Science 26 (Winter): 16–30.

    Article  Google Scholar 

  • Castleberry, S. B., Shepherd, C. D. and Ridnour, R. (1999) Effective interpersonal listening in the personal selling environment: Conceptualization, measurement, and nomological validity. Journal of Marketing Theory and Practice 7 (1): 30–38.

    Article  Google Scholar 

  • Hunt, M. (1983) The Universe Within: A New Science Explores the Human Mind. New-York: Simon and Schuster.

    Google Scholar 

  • Rhodes, S. C., Watson, K. W. and Barker, L. L. (1990) Listening assessment: Trends and influencing factors in the 1980's. International Journal of Listening 4: 62–82.

    Article  Google Scholar 

  • Brownell, J. (2002) Listening: Attitudes, Principles, and Skills. Boston, MA: Allyn and Bacon.

    Google Scholar 

  • Fitch-Hauser, M. and Hughes, M. A. (1992) The conceptualization and measurement of listening. International Journal of Listening 6: 6–22.

    Article  Google Scholar 

  • Morgan, R. M. and Hunt, S. D. (1994) The commitment-trust theory of relationship marketing. Journal of Marketing 58 (3): 20–38.

    Article  Google Scholar 

  • Swan, J. E. and Oliver, R. L. (1991) An applied analysis of buyer equity perceptions and satisfaction with automobile salespeople. Journal of Personal Selling and Sales Management 11 (2): 15–26.

    Google Scholar 

  • Covey, S. R. (1987) The Seven Habits of Highly Effective People. New-York: Simon and Schuster.

    Google Scholar 

  • Zeithaml, V. A. (1988) Consumer perceptions of price, quality and value: A means-end model and synthesis of evidence. Journal of Marketing 52 (July): 2–22.

    Article  Google Scholar 

  • Bitner, M. J. and Hubbert, A. R. (1994) Encounter satisfaction versus overall satisfaction versus quality. In: R.T. Rust and R.L. Oliver (eds.) Service Quality: New Directions in Theory and Practice. London: Sage Publications.

    Google Scholar 

  • Parasuraman, A., Zeithaml, V. A. and Berry, L. L. (1985) A conceptual model of service quality and its implications for future research. Journal of Marketing 49 (Fall): 41–50.

    Article  Google Scholar 

  • Brownell, J. (1996) Getting quality out on the street – A case of show and tell. Cornell Hotel and Restaurant Administration Quarterly 37 (1): 28–33.

    Google Scholar 

  • Bauer, R. A. (1960) Consumer behavior as risk taking. In: R.L. Hancock (ed.) Dynamic Marketing for a Changing World. Chicago, IL: American Marketing Association.

    Google Scholar 

  • Laroche, M., Bergeron, J. and Goutaland, C. (2003) How intangibility affects perceived risk: The moderating role of knowledge and involvement. Journal of Services Marketing 17 (2): 122–140.

    Article  Google Scholar 

  • Szymanski, D. M. and Henard, D. H. (2001) Customer satisfaction: A meta-analysis of the empirical evidence. Journal of the Academy of Marketing Science 29 (1): 16–35.

    Article  Google Scholar 

  • Behrman, D. N. and Perreault Jr., W. D. (1982) Measuring the performance of industrial salespersons. Journal of Business Research 10 (September): 355–370.

    Article  Google Scholar 

  • Lau, G. T. and Ng, S. (2001) Individual and situational factors influencing negative word-of-mouth behavior. Canadian Journal of Administrative Sciences 18 (3): 163–178.

    Article  Google Scholar 

  • Mowen, J. C. and Minor, M. (1998) Consumer Behavior. Upper Saddle River, NJ: Prentice-Hall.

    Google Scholar 

  • Anderson, E. R., William, T. and Weitz, B. (1998) Commitment and its consequences in the American agency system of selling insurance. Journal of Risk Insurance 65 (4): 637–669.

    Article  Google Scholar 

  • Sharma, A., Tzokas, N., Saren, M. and Kyziridis, P. (1999) Antecedents and consequences of relationship marketing: Insights from business service salespeople. Industrial Marketing Management 28 (6): 601–611.

    Article  Google Scholar 

  • Shepherd, C. D., Castleberry, S. B. and Ridnour, R. E. (1997) Linking effective listening with salesperson performance: An exploratory investigation. Journal of Business and Industrial Marketing 12 (5): 315–322.

    Article  Google Scholar 

  • Macintosh, G., Anglin, K. A., Szymanski, D. M. and Gentry, J. W. (1992) Relationship development in selling: A cognitive analysis. Journal of Personal Selling and Sales Management 12 (4): 23–34.

    Google Scholar 

  • Farh, J. L., Werbel, J. D. and Bedeian, A. G. (1988) An empirical investigation of self-appraisal-based performance evaluation. Personnel Psychology 41 (Spring): 141–156.

    Article  Google Scholar 

  • Cronin, J. J. (1994) Analysis of the buyer–seller dyad: The social relations model. Journal of Personal Selling and Sales Management 14 (3): 69–77.

    Google Scholar 

  • Schneider, K. C. and Johnson, J. C. (1995) Stimulating response to market surveys of business professionals. Industrial Marketing Management 24 (4): 265–276.

    Article  Google Scholar 

  • Dillman, D. A. (1978) Mail and Telephone Surveys: The Total Design Method. New York: John Wiley & Sons.

    Google Scholar 

  • Angur, M. G. and Nataraajan, R. (1995) Do source of mailing and monetary incentives matter in international industrial mail surveys? Industrial Marketing Management 24 (5): 351–357.

    Article  Google Scholar 

  • Faria, A. J. and Dickinson, J. R. (1996) The effect of reassured anonymity and sponsor on mail survey response rate and speed with a business population. Journal of Business and Industrial Marketing 11 (1): 66–76.

    Article  Google Scholar 

  • Claycomb, C. P., Stephen, S. and Martin, C. L. (2000) Riding the wave: Response rates and the effects of time intervals between successive mail survey follow-up efforts. Journal of Business Research 48 (2): 157–162.

    Article  Google Scholar 

  • Fornell, C. and Larcker, D. F. (1981) Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 18 (February): 39–50.

    Article  Google Scholar 

  • Richardson, L. D., Swan, J. E. and McInnis-Bowers, C. (1994) Sampling and data collection methods in sales force research: Issues and recommendations for improvement. Journal of Personal Selling and Sales Management 14 (4): 31–39.

    Google Scholar 

  • Armstrong, S. J. and Overton, T. (1977) Estimating nonresponse bias in mail surveys. Journal of Marketing Research 14 (3): 396–402.

    Article  Google Scholar 

  • Bentler, P. M. (1992) EQS: Structural Equations Program Manual. Los Angeles, CA: BMDP Statistical Software.

    Google Scholar 

  • Byrne, B. (1994) Structural Equation Modeling with EQS and EQS/Windows. Thousand Oaks, CA: Sage Publications.

    Google Scholar 

  • Cox, D. and Cox, A. D. (2002) Beyond first impressions: The effects of repeated exposure on consumer liking of visually complex and simple product designs. Journal of the Academy of Marketing Science 30 (2): 119–130.

    Article  Google Scholar 

  • Baumgartner, H. and Homburg, C. (1996) Applications of structural equation modeling in marketing and consumer research: A review. International Journal of Research in Marketing 13 (2): 139–161.

    Article  Google Scholar 

  • Churchill Jr, G. A. (1979) A Paradigm for developing better measures of marketing constructs. Journal of Marketing Research 16 (February): 64–73.

    Article  Google Scholar 

  • McKelvey, W. W. (1976) An Approach for Developing Shorter and Better Measuring Instruments. Graduate School of Management, UCLA. Working Paper 76-6.

  • Peterson, R. A. (1994) A meta-analysis of Cronbach's coefficient alpha. Journal of Consumer Research 21 (2): 381–391.

    Article  Google Scholar 

  • Bagozzi, R. P. and Yi, Y. (1988) On the evaluation of structural equation models. Journal of the Academy of Marketing Science 16 (1): 74–79.

    Article  Google Scholar 

  • Wheaton, R. B., Muthen, B., Alwin, D. F. and Summers, G. F. (1977) Assessing reliability and stability in panel models. In: D.R. Heise (ed.) Sociological Methodology. San Francisco, CA: Jossey Bass, pp. 84–136.

    Google Scholar 

  • Anderson, J. C. and Gerbing, D. W. (1988) Structural equation modeling in practice: A review and recommended two step approach. Psychological Bulletin 103 (May): 411–423.

    Article  Google Scholar 

  • Peter, J. P. (1981) Construct validity: A review of basic issues and marketing practices. Journal of Marketing Research 18 (May): 133–145.

    Article  Google Scholar 

  • Bagozzi, R. P. and Philips, L. W. (1982) Representing and testing organizational theories. Administrative Science Quarterly 27 (3): 459–489.

    Article  Google Scholar 

  • Castleberry, S. B. and Shepherd, C. D. (1993) Effective interpersonal listening and personal selling. Journal of Personal Selling and Sales Management 8 (Winter): 35–49.

    Google Scholar 

  • Rogers, C. R. (1959) A theory of therapy, personality and interpersonal relationships as developed in the client-centered framework. In: S. Kock (ed.) Psychology: A Study of a Science. New York: McGraw Hill.

    Google Scholar 

  • Szymanski, D. M. and Churchill Jr, G. A. (1990) Client evaluation cues: A comparison of successful and unsuccessful salespeople. Journal of Marketing Research 27 (2): 163–174.

    Article  Google Scholar 

  • Churchill Jr, G. A., Ford, N. M., Hartley, S. W. and Walker Jr, O. C. (1985) The determinants of salesperson performance: A meta-analysis. Journal of Marketing Research 22 (May): 103–118.

    Article  Google Scholar 

  • Ricard, L. and Perrien, J. (1999) Explaining and evaluating the implementation of organizational relationship marketing in the banking industry: Clients’ perception. Journal of Business Research 45 (2): 199–209.

    Article  Google Scholar 

  • Calder, B. J., Phillips, L. W. and Tybout, A. M. (1981) Designing research for application. Journal of Consumer Research 8 (September): 197–207.

    Article  Google Scholar 

  • Weilbaker, D. C. (1990) The identification of selling abilities needed for missionary per sales. Journal of Personal Selling and Sales Management 10 (3): 45–58.

    Google Scholar 

  • Barker, D. R. and Fitch-Hauser, M. (1986) Variables Related to the Processing and Reception of Information as Published in Ten Selected Psychology Journals. Research Talk Force of the International Listening Association, San Diego, CA.

  • Steil, L. K., Summerfield, J. and de Mare, G. (1983) Listening: It Can Change Your Life. New-York: John Wiley and Sons.

    Google Scholar 

  • Lefcourt, H. M., Martin, R. A., Fick, C. M. and Saleh, W. E. (1985) Locus of control for affiliation and behavior in social interactions. Journal of Personality and Social Psychology 48 (March): 755–759.

    Article  Google Scholar 

  • Coakley, C. G., Halone, K. K. and Wolvin, A. D. (1996) Perceptions of listening ability across the life-span: Implications for understanding listening competence. International Journal of Listening 10: 21–48.

    Article  Google Scholar 

  • Boorom, M. L. (1994) Involved listening as a salesperson skill variable and its impact upon adaptive selling and sales performance. Dissertation. University of South Florida.

Download references

Acknowledgements

The authors acknowledge the support of the organisations who participated in this study. The authors are also grateful for the financial support offered by the Financial Services Research Chair of the University of Quebec in Montreal.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Jasmin Bergeron.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Bergeron, J., Laroche, M. The effects of perceived salesperson listening effectiveness in the financial industry. J Financ Serv Mark 14, 6–25 (2009). https://doi.org/10.1057/fsm.2009.1

Download citation

  • Received:

  • Revised:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/fsm.2009.1

Keywords

Navigation