The impact of salesperson credibility-building statements on later stages of the sales encounter

Abstract

Salespeople frequently attempt to build credibility on their first encounter with a customer. Because customers actively evaluate persuasive messages, it is important to understand their reactions to credibility-building tactics and how these reactions shape the sales interaction. Accordingly, this study investigates customers' reactions to two types of credibility-building statements – benevolence and expertise – using a multistep qualitative analysis of sales transactions in the life insurance industry, along with surveys before and after the sales encounter. Empirical results show that customers are more likely to react positively to credibility-building statements that match their buying style expectations. Furthermore, when customers react positively to a credibility-building tactic, salespeople are more likely to continue using that tactic when addressing customer objections. However, whereas benevolence tactics for addressing customer objections lead to stronger relational outcomes, the findings indicate that expertise tactics do not. Thus, matching sales tactics with customers' buying style expectations is beneficial in the early stages of the sales encounter, but customer objections are best addressed with benevolence tactics, regardless of customers' buying style.

Keywords:

• salesperson credibility
• customer objections
• expertise
• benevolence

Notes

1. This negotiation condition was introduced as part of a life insurance industry (NALU) funded study to investigate the potential effect of price negotiation (rebating) in the insurance sales encounter.

2. Campbell, Davis, and Skinner (2006) explain that indirect denials could be, but are not necessarily, low threats to face needs and social rights. We observed that indirect denials were among the least threatening tactics; therefore, we included them as low-threat tactics.