Antecedents and Consequences of Value-Based Selling in B2B Market

Purpose: Many firms are increasingly deploying a value-based selling (VBS) in their B2B organizations to drive growth for product and service. Defined as a sales strategy that builds on understanding, developing, and communication of customer value, value-based selling is a proactive, challenging selling approach. Because value-based selling requires significant efforts, especially for products and services where customer and market requirements are more uncertain, research needs to identify all potential sources for encouraging salespeople in B2B industries. Although prior research has focused factors for increasing value-based selling in the light of potential extensions and alternative ways of understanding value-based selling, it remains a selling strategy whose antecedents are relatively unexplored. Therefore, this research aims to investigate factors that affect the implementation of value-based selling and the subsequent influence on salespeople’s sales performance. Research design, data, and methodology: In order to test hypotheses, First, we identified suitable firms for the empirical survey among B2B firms from manufacturing, IT and services. Second, we use we established scales to measure our key constructs whenever possible. Third, the survey was conducted for 200 salespeople in South Korea. Fourth, the reliability and validity of the constructs was evaluated using Cronbach’s alpha coefficient, confirmatory factor analysis. Finally, proposed research model was estimated by using structural equation modeling. Results: The the hypothesized model, the global fit statistics indicate an acceptable fit of the model to the data (χ2(212)=265.66, p<.05, CFI=.98, TLI=.98, IFI=.98, RMSEA=.06). We find support H1, H2, H3, H5 in this model. First, salespeople’ customer orientation has a positive effect on value-based selling (H1). Second, salespeople’ learning orientation has a positive relationship with value-based selling. Third, salespeople’ external networking is positively related ot value-based selling. Finally, value-based selling increase salespeople selling performance. Conclusions: Following recent calls for more research on the antecedents of value based selling, this research explores salespeople’ motivational and attitudinal factors that affect the use of value-based selling. The theoretical and practical implications of the research are discussed as follows. First, this research answers recent calls for study into the antecedents of value-based selling by developing a theoretical model to investigating the effect of customer orientation, learning orientation, and external networking of salespeople on the usage of value selling practices. Also, salespeople needs to communicate with inner people in his her own organization, leveraging their skills and knowhow and align everyone around the goal of value-in use creation with customers. Finally, sales manager aiming to encourage the use of value-based selling in their salespeople must balance managerial actions aimed at motivational and attitudinal factors.