The drivers influencing the relationship between sales representatives and customers and the impact this relationship has on sales volume within Coca-Cola’s Western Cape region
Companies within the FMCG sector are continually trying to create value from their brands by increasing their margins and/or selling more of their products. Taking cost out of the value chain gives the company a competitive advantage, but this advantage is short lived as competitors also reduce cost...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
AOSIS
2008-03-01
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| Series: | South African Journal of Business Management |
| Online Access: | https://sajbm.org/index.php/sajbm/article/view/554 |
| _version_ | 1817982151875887104 |
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| author | F. J. Herbst C. L. Forrest |
| author_facet | F. J. Herbst C. L. Forrest |
| author_sort | F. J. Herbst |
| collection | DOAJ |
| description | Companies within the FMCG sector are continually trying to create value from their brands by increasing their margins and/or selling more of their products. Taking cost out of the value chain gives the company a competitive advantage, but this advantage is short lived as competitors also reduce costs. Differentiating a product through enhanced features and benefits also provides a competitive advantage, but is also subject to imitation by rivals. As competition increases, companies are looking for new avenues to differentiate themselves. Relationship marketing has, as a result, increased its prevalence as a competitive tool to provide that point of difference.
This research investigated the factors that influence the relationships between a Coca-Cola sales representative and his/her customers within the Cape Town region.
This article was developed after studying literature as it pertained to customer relationship marketing. From the literature the foundation blocks in developing buyer-seller relationships were studied. The research methodology tested the impact of certain factors on the ability to build a relationship between buyer and seller and then tested the validity of those answers using underlying determinants of a relationship. These determinants included the ability to communicate, the ability to trust, the degree of loyalty and the ability to influence a customer.
The response to the questionnaires was extremely high (over 95%) and provided for a robust evaluation of data. The research showed that there was a positive correlation between the profile of a sales representative and a customer. It is easier for a sales representative to build a relationship with a customer who is a similar age. It is however easier for the sales representative to influence a younger customer. Gender plays no role in a sales representative’s ability to build a relationship. With respect to education, a stronger relationship exists between a customer and sales representative of a similar education. Again it is easier for a representative to influence a customer who has a lower level of education. Race does have an impact on the ability to build relationships. The research showed that an African sales representative should service an African customer. There was a positive link between matching sales representatives and customers who come from similar areas and have the same religion. There was no correlation between the degree of the relationship that a Coca-Cola sales representative in the Western Cape region has with a customer and the sales growth within the outlets. This final conclusion must be read in the context of the relative high market share that the Coca-Cola Company has in the Western Cape. |
| first_indexed | 2024-04-13T23:15:50Z |
| format | Article |
| id | doaj.art-00310954317947519f89a96da89caade |
| institution | Directory Open Access Journal |
| issn | 2078-5585 2078-5976 |
| language | English |
| last_indexed | 2024-04-13T23:15:50Z |
| publishDate | 2008-03-01 |
| publisher | AOSIS |
| record_format | Article |
| series | South African Journal of Business Management |
| spelling | doaj.art-00310954317947519f89a96da89caade2022-12-22T02:25:23ZengAOSISSouth African Journal of Business Management2078-55852078-59762008-03-01391354310.4102/sajbm.v39i1.554278The drivers influencing the relationship between sales representatives and customers and the impact this relationship has on sales volume within Coca-Cola’s Western Cape regionF. J. Herbst0C. L. Forrest1University of Stellenbosch Business SchoolFranchise Manager Forbes Group (Western Cape), Coca-Cola South Africa (Pty) LtdCompanies within the FMCG sector are continually trying to create value from their brands by increasing their margins and/or selling more of their products. Taking cost out of the value chain gives the company a competitive advantage, but this advantage is short lived as competitors also reduce costs. Differentiating a product through enhanced features and benefits also provides a competitive advantage, but is also subject to imitation by rivals. As competition increases, companies are looking for new avenues to differentiate themselves. Relationship marketing has, as a result, increased its prevalence as a competitive tool to provide that point of difference. This research investigated the factors that influence the relationships between a Coca-Cola sales representative and his/her customers within the Cape Town region. This article was developed after studying literature as it pertained to customer relationship marketing. From the literature the foundation blocks in developing buyer-seller relationships were studied. The research methodology tested the impact of certain factors on the ability to build a relationship between buyer and seller and then tested the validity of those answers using underlying determinants of a relationship. These determinants included the ability to communicate, the ability to trust, the degree of loyalty and the ability to influence a customer. The response to the questionnaires was extremely high (over 95%) and provided for a robust evaluation of data. The research showed that there was a positive correlation between the profile of a sales representative and a customer. It is easier for a sales representative to build a relationship with a customer who is a similar age. It is however easier for the sales representative to influence a younger customer. Gender plays no role in a sales representative’s ability to build a relationship. With respect to education, a stronger relationship exists between a customer and sales representative of a similar education. Again it is easier for a representative to influence a customer who has a lower level of education. Race does have an impact on the ability to build relationships. The research showed that an African sales representative should service an African customer. There was a positive link between matching sales representatives and customers who come from similar areas and have the same religion. There was no correlation between the degree of the relationship that a Coca-Cola sales representative in the Western Cape region has with a customer and the sales growth within the outlets. This final conclusion must be read in the context of the relative high market share that the Coca-Cola Company has in the Western Cape.https://sajbm.org/index.php/sajbm/article/view/554 |
| spellingShingle | F. J. Herbst C. L. Forrest The drivers influencing the relationship between sales representatives and customers and the impact this relationship has on sales volume within Coca-Cola’s Western Cape region South African Journal of Business Management |
| title | The drivers influencing the relationship between sales representatives and customers and the impact this relationship has on sales volume within Coca-Cola’s Western Cape region |
| title_full | The drivers influencing the relationship between sales representatives and customers and the impact this relationship has on sales volume within Coca-Cola’s Western Cape region |
| title_fullStr | The drivers influencing the relationship between sales representatives and customers and the impact this relationship has on sales volume within Coca-Cola’s Western Cape region |
| title_full_unstemmed | The drivers influencing the relationship between sales representatives and customers and the impact this relationship has on sales volume within Coca-Cola’s Western Cape region |
| title_short | The drivers influencing the relationship between sales representatives and customers and the impact this relationship has on sales volume within Coca-Cola’s Western Cape region |
| title_sort | drivers influencing the relationship between sales representatives and customers and the impact this relationship has on sales volume within coca cola s western cape region |
| url | https://sajbm.org/index.php/sajbm/article/view/554 |
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