Examination of A Multilevel Value-Based Selling Model to Evaluate Sellers’ performance in Business to Business Markets

The emphasis on customer perceived value has long been a part of the marketing and sales literature. With the advancement of variousorganizations in business to business markets, increased competition andthe execution of the best sales strategy has become a priority in businessmarkets. Therefore, creating superior customer value in competitivemarkets is critical to a company's success. Many industry organizationsare looking to increase customer value, but they do not know how toeffectively sell or how this strategy will impact on performance. To thisend, the present study investigates value-based selling and its impact onseller performance. The model used in this research is based on theframework of motivation, opportunity and ability. This modelencompasses both the organizational and the individual aspects ofstrategy implementation. Questionnaires completed by 212 vendors andsales managers of industrial organizations were used to measure thistwo-level model. Using structural equation modeling and data analysis,it can be concluded that the value-based sales approach improves thesales performance. Salespeople who are more able to build relationshipswith their company employees and decision makers in customers’ firmare more likely to succeed. In addition, one must have the necessaryknowledge to identify the true needs of the buyer and the position of thesale. The salesperson alone cannot perform all the sales tasks and needsthe support of the organization. The organization can facilitate vendor work by providing customer reference records and proof of credit, and by eliminating ambiguities of the buyer by creating tools that offer value quantity and financial results. As a result, value-based selling is more effective in situations and industries where the buyer has less demands, helping the seller create value by co-creating with buyer and turn it to an organization's asset.