The Impact of Intercultural Sensitivity on Value-based Versus Transactional Selling in B2B

Abstract

Purpose of Thesis — Many companies are shifting from transactional to value-based sales approaches. However, the implementation of such a sales approach is resource-intensive and costly which is why it necessitates careful consideration. The preference of a B2B customer toward certain sales approaches is influenced by various factors. One increasingly important and so far neglected factor in business is intercultural sensitivity. Therefore, the main objective of this thesis is to examine whether and in which way the degree of intercultural sensitivity influences the preference toward a value-based versus transactional selling approach. Additionally, the investigation was extended by the impact of relationship orientation on the subject manner. In order to answer the research question empirical research was conducted on the basis of an extensive literature review. Design/Methodology — The study employs a quantitative approach to test the hypotheses derived from the main research question. All relevant constructs were measured using existing scales. In total, n = 169 participants took part in the survey. The collected data was analyzed in a descriptive and inference statistical way using the IBM® SPSS® software. Findings — The study reveals that intercultural sensitivity and relationship orientation are significantly associated with one another. Furthermore, intercultural sensitivity has a direct effect on the preference toward value-based selling and partially mediates the relationship between relationship orientation and the preference toward value-based selling. Likewise, relationship orientation directly affects the preference for value-based selling and also acts as a partial mediator between intercultural sensitivity and this preference. However, results suggest that intercultural sensitivity is more likely to act as a mediator than relationship orientation in the context of the survey. Neither intercultural sensitivity nor relationship orientation shows evidence for a significant moderation effect on the relationship between them and the preference for value-based selling. Contribution & Implications — The findings hold important implications for sales professionals in the B2B context. As both, intercultural sensitivity and relationship orientation are positively associated with the preference toward value-based selling, companies should utilize this information within their customer segmentation process in order to decide which sales approach to use for which customers. Furthermore, the findings have important implications for the sales force. When dealing with B2B customers who show a high degree of ICS and/or RO, these competencies are also beneficial for the sales professional. It is advised for companies to consider this within the hiring process as well as to create an environment supportive of these behaviors and to provide training if needed.

Date of Award	2024
Original language	English
Supervisor	Piotr Kwiatek (Supervisor)