VOLUME NO. 4 (2013), ISSUE N O.

12(DECEMBER) ISSN 0976-2183

LINKING EMOTIONAL INTELLIGENCE, SALES PERFORMANCE AND SALES SUCCESS OF RETAIL
SALESPEOPLE: A REVIEW APPROACH

DR. M. M. MUNSHI
PROFESSOR & HEAD (R&D)
DEPARTMENT OF MANAGEMENT STUDIES & RESEARCH
GOGTE INSTITUTE OF TECHNOLOGY
UDYAMBAG, BELGAUM, KARNATAKA

SANJAY HANJI
ASSOCIATE PROFESSOR
DEPARTMENT OF MANAGEMENT STUDIES
BASAVESHWAR ENGINEERING COLLEGE (AUTONOMOUS)
VIDYAGIRI, BAGALKOT, KARNATAKA

ABSTRACT
At present the retail industry in India is accelerating. Though India is still not at an equal pace with other Asian counterparts but it is geared up to become a major
player in the retail market. In recent past, retailing has gained lot of importance due to rising investment in this sector. These investments will only be justified
with pure performance of the retail outlets and the performance of the retail outlets depend on individual sales performance of retail sales people. Dealing with
customer problems and maintaining a smile in difficult situations is very demanding in retail sales and therefore, retail sales providers need to be more supportive
and understanding in nature to deal with such demands effectively. Emotional intelligence is the ability to restrain from the negative feelings stemming out of
such situations and focus on positive feelings which determines success (Gangai et al., 2013). Many researchers have emphasized the importance of emotional
intelligence in sales performance but this has not extended to research in analyzing retail sales performance. This paper tries to explore and investigate the
relationship between EI and retail sales people performance through review of various literatures. Based on what literatures indicate, it has been concluded
emotional competencies of sales people are very important in determining their sales performance and sales success. More empirical evidence is advocated in
future researches.

KEYWORDS
Emotional Intelligence, Retail Stores, Sales People, Sales Performance, Sales Success.

1. INTRODUCTION

T here is a big buzz of FDI in retailing and retailing is seen as a vital sector by most thinkers, politicians, finance specialist, economists, businessmen &
investors. In recent past, retailing has gained lot of importance due to rising investment in this sector. Even today’s consumer retail purchase decisions
have undergone a lot of changes. Consumer shop a lot of products from different types or formats of retail outlets. Both organized and family owned
small retail outlets are surviving in Indian markets. There is also a lot of scope of many more organized retail outlets in India.
As lot of new retail companies from India and abroad are establishing their retail outlets in Indian market, the existing retailing outlets both organized and
unorganized are facing lot of competition and to survive in this competitive environment they need to perform or otherwise they will perish. The performance of
retailing outlets mainly depends on their sales performance. The retail sales performance depends on individual retail sales personnel performance. Dealing with
customer problems and maintaining a smile in difficult situations is very demanding in retail sales and therefore, retail sales providers need to be more
supportive and understanding in nature to deal with such demands effectively (Levy et al., 2008). Emotional intelligence is the ability to restrain from the
negative feelings stemming out of such situations and focus on positive feelings which determines success (Gangai et al., 2013). If employees are emotionally
strong then they will be able to handle stressful situations in a better way. Singh (2011) believe that individual competencies such as emotional intelligence of
sales force of any organization are strong determinant of success in retail industry.
1.1 RETAILING IN INDIA
Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP. The Indian retail market is estimated to be US$ 450 billion and
one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people.
As of 2013, India's retailing industry was essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for
about 4 percent of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians i.e.,
3.3% of Indian population (Anonymous, 2013).
1.1.1 INVESTMENT IN RETAILING
At present the Retail industry in India is accelerating. Though India is still not at an equal pace with other Asian counterparts, Indian is geared to become a major
player in the Retail Market. The fact that most of the developed nations are saturated and the developing ones still not prepared, India secures a great position
in the international market. Also with a highly diverse demography, India provides immense scope for companies brining in different products targeting different
consumers. According to the Global Retail Development Index, India is positioned as the foremost destination for Retail investment and business development.
The factor that is presently playing a significant role here is the fact that a large section of Indian population is in the age group of 20-34 with a considerably high
purchasing power; this has caused the increase in the demand in the urban market resulting in consistent growth in the Retail business (Domodaran, 2013).
India is among the world's most exciting retail destinations, according to a PricewaterhouseCoopers and Confederation of Indian Industry study, many global
retailers have not had full access to this $590 billion market. So far, Indian law allows up to 51% foreign investment in single-brand retail and 100% in cash-and-
carry format. The presence of large global companies will afford employment opportunities for thousands of people. This, coupled with negative correlation with
inflationary pressures, might help spur the Indian economic growth. Retail, currently, accounts for nearly 14% of the services sector contribution to Indian GDP.
Corporate India seems to be opening up of this sector now (Dikshit, 2011).
The government has allowed foreign retailers to open stores in states that have agreed to allow FDI in multi-brand retail. The cabinet said okay for 51% FDI in
multi-brand retail sector and 100% FDI in single brand (Ramvenkatesh, 2012).
1.2 EMOTIONAL INTELLIGENCE
Emotional Intelligence helps a person to assess one own emotions and that of others, thereby learn to use feelings to encourage, inspire and attain success in
one’s life (Abraham, 2000).
Emotional Intelligence is defined as “the ability to monitor one’s own and other’s feelings and emotions, to discriminate among them and to use this information
to guide one’s thinking and action” (Mayer & Salovey, 1997). They further improvised this definition and stated as follows: “Emotional intelligence involves the

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ability to perceive accurately, appraise and express emotion; the ability to access and/or generate feelings when they facilitate thought; the ability to understand
emotion and emotional knowledge; and the ability to regulate emotions to promote emotional and intellectual growth”.
According to this definition, Mayer and Salovey have suggested five branches of EI:
1. Perception, Appraisal and Expression of Emotion
2. Emotional Facilitation of Thinking
3. Understanding and Analyzing Emotions; Employing Emotional Knowledge
4. Reflective Regulation of Emotion to Promote Emotional and Intellectual Growth
Goleman (1998) has defined “Emotional Intelligence” as a capacity for recognizing our own feelings and those of others, for motivating ourselves, and for
managing emotions well in ourselves and in our relationships. Goleman has proposed five basic emotional and social competencies:
1. Self-awareness
2. Self-regulation
3. Motivation
4. Empathy
5. Social skills.

2. LITERATURE REVIEW
The literature is reviewed in the field of emotional intelligence, performance, sales, retailing, and all other related fields to get insights of relationships between
these variables. Here an attempt is being made to find the role of sales people EI in achieving their sales performance and sales success in retailing. Based on the
review of literature, conclusions are drawn along with managerial implications and future research works are suggested.
2.1 IMPORTANCE OF SALESPEOPLE IN RETAILING
Though the salesperson is at the bottom of the sales organization, he is the lifeblood of the organization and his achievement decides the fate of the
organization (Panda and Sahadev, 2005).
Lee and Yang (2013) based on their study have advised retailers to increase interpersonal service quality of retail sales people because it will increase customer
retail store patronage. This only means that retail sales people should possess interpersonal skills to handle customers.
Jacob et al., (2011) believe that developing interpersonal bonds between employees and customers in selling contexts can increase sales and positive
perceptions of the employees and the store.
The quality of the relationship between customers and service firm employees has been found to be a major driver of customer loyalty and customer retention
in traditional service contexts in retail business (Walsh et al., 2010).
In a study conducted by Tafesse and Korneliussen (2012) it was found that consumers’ favorable evaluation of retailers’ sales staff services, store atmosphere
and product assortment let to more customer purchase incidences.
Lombart and Louis (2012) have investigated that retail salespeople’s personality trait such as congenial or friendly behavior with customers have direct impact
on their satisfaction and loyalty.
The above literature highlights the importance of salespeople in retailing. They are the ones who increase customer retail store patronage, build seller-buyer
bonds, increase sales, increase positive perceptions of the store, impact customers’ satisfaction and loyalty.
2.2 EMOTIONAL INTELLIGENCE AND PERFORMANCE
Gangai and Agarwal (2013) have said that emotional intelligence is the ability to restrain negative feelings such as anger, anxiety, stress, self doubt and instead
focus on positive feelings such as confidence, congeniality and empathy. So one should emphasize on developing emotional intelligence to overcome negative
feelings at workplace and get success in life. If employees are strong emotionally, then they will be able to handle stressful situations in a better way and will
take independent decisions in professional as well as personal lives.
Kazi, Shah and Khan (2013), have recommended that in the organizations, employees should be given regular training on developing strong emotional
intelligence competencies which will eventually help them to boost up their performance and combat stress in proactive way. In this way organizations could be
saved from devastating effects of workplace stress. Once such negative effects are taken care of, then organizations can fully focus on building good work
performance levels of their employees. This will steer to the development of a better society as a whole.
Emotionally intelligent people are not only able to perceive, understand and manage their own emotions, but will also be able extrapolate to the emotions of
others, their skills of perception, understanding and management in a better way. EI is a dimension that should be taken into account more within the broad
range of variables that influence or modulate a person’s success. In other words, if psychology is aimed at understanding fundamental human behaviour, EI is a
new element to be considered. It is one more piece of the puzzle that allows us to explain the individual’s life results which were not predicted so far by existing
variables (Extremera and Fernandez-Berrocal, 2004).
Cherniss (2000), has established that emotional intelligence abilities are very important for the success in many areas of life and however, in the world of work,
the person’s emotional element will also become more important with other variables such as cognition, physical resources etc.
Lam and Kirby (2002), based on most famous opinions have established that emotional intelligence boosts performance and productivity at work place. They
tried to find out whether emotional intelligence predicts individual cognitive based performance over and above general intelligence of a person. They used
Multifactor Emotional Intelligence Scale to measure emotional intelligence. They found that emotional intelligence, emotional perception & emotional
regulation explained performance over and beyond general intelligence.
Neale, Spencer-Arnell and Wilson (2009), have emphasized some benefits of learning emotional intelligence. They are improvement in relationships,
improvement in communication with others, enhanced empathy skills, performing with integrity, value and admiration from others, better job and career
prospects, administrating change more assertively, smaller amount of power games at work, sense of confidence and positivity, condensed stress levels, greater
imagination and creativeness and learning from mistakes. All these benefits converge together to give better performance at work place.
Bachman et al., (2000) reported a study which compared more successful account officers (debt collectors) and less successful ones based on their emotional
intelligence abilities. The emotional intelligence of the account officers was measured using BarOn Emotional Quotient Inventory. The outcomes of the study
substantiate the view that higher levels of emotional intelligence lead to enhanced job performance.
Langhorn (2004) study revealed a strong correlation between emotional intelligence pattern of the general managers and the areas of their profits performance.
Akintayo and Babalola (2012), in their study found that emotional intelligence has significant contributions to workers’ job performance, job satisfaction, job
involvement, and organizational commitment, which will further lead to organizational goal achievement.
Grewal et al., (2006) study has provided preliminary evidence that emotional intelligence, measured as a set of abilities, is associated with important positive
work outcomes.
Prentice and King (2011) has explored the influence of emotional intelligence on service performance of frontline employees in the casino industry. The main
hypothesis of the study was EI predicts the service performance of casino service representatives. The results divulged that EI significant predicts the service
performance of casino frontline employees.
One et al., (2011) have examined in their study, the extent to which cognitive ability, the Big Five factor personality dimensions and emotional intelligence are
related to training and job performance of U.S. federal criminal investigators. The results revealed that cognitive ability and emotional intelligence were
positively correlated with job performance.
Based on the review of above literature it is evident that EI helps a person to restrain from negative feelings such as stress, anger, anxiety etc and bring in
positive feelings in self, such as happiness, confidence, congeniality etc which are very important to work in an efficient manner at work. An emotional intelligent

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person at work will be able to understand his own emotions and in that of others. He can also regulate his own emotions to get positive outcomes in his
professional life. Emotional intelligence of person enables him to achieve greater performance at work.
2.3 EMOTIONAL INTELLIGENCE AND SALES PERFORMANCE
Affective or emotional commitment in service provider-customer relationships is the most significant determinant of customer advocacy and support (Fullerton,
2011).
Daus and Ashkanasy (2005) believe that emotional intelligence clearly has much to offer in the domain of emotional labour and jobs that require high amounts
of EI such as customer and social service types of occupations and those that require a high amount of interaction with the public.
The face-to-face encounters enhance cross-selling. The outcomes of such encounters are dependent on customers’ and sales peoples’ bodily gestures, their
expression, sharing of feeling, empathy, happiness, showing signs of interest, sadness, distance, etc. Hence all these embodied and situated factor impact cross-
selling and hence the overall sales (Varlander and Yakhlef, 2008).
Soderlund and Rosengren (2010) in their study have found that service worker’s high technical service quality along with the display of emotions improves
customer satisfaction.
Emotional variables play an important role in the word-of-mouth flow process from the existing customers to the potential customers (Soderlund and
Rosengren, 2007). So customers’ emotions should be managed well with the help of sales peoples’ emotional intelligence.
The research conducted by Kidwell, Hardesty, Murtha and Sheng (2011), examines that how sales professionals use emotions in their marketing exchanges with
customers to facilitate positive outcomes for their firms, themselves and their customers. The authors conducted three field studies to examine the impact of
emotional intelligence (EI) in marketing exchanges on sales performance and customer relationships. It was found that sales professionals in real estate business
and insurance who possess higher emotional intelligence are not only superior revenue generator but are also better at retaining customers. Additionally, the
authors demonstrate that EI interacts with key marketing exchange variables such as customer-orientation and manifest influence, to heighten performance
such that high EI sales people more effectively employ customer-oriented selling and influence customer decision making.
In study conducted by Jennings and Palmer (2007), front line sales managers and sales representatives were put through a learning and development
programme on emotional intelligence. The emotional intelligence and sales revenue of participants were measured before and after the programme. There was
a significant improvement in the sales revenue was found with the experimental group when it was compared with the control group. This study revealed how
sales person’s emotional intelligence is linked to sales revenue which is beyond just sales performance.
Research conducted by Kidwell, McFarland and Avila (2007), indicated that the sales person’s ability to accurately appraise the emotions of others, moderated
the sales person’s practice of adaptive selling and customer-oriented selling on their performance. Further analyses revealed that, high ability to perceive
emotions has beneficial effects on selling and low ability to perceive emotions not only limits the use of customer-oriented selling but also has a negative impact
on sales performance. Both self-reported and supervisor-reported measures of selling performance were used in this study.
Ahuja (2011) conducted an empirical study to find the relationship between emotional intelligence and work performance of front-line sales executives in Indian
Insurance sector. The data was collected from a sample of 100 sales executives on two variables: Emotional Intelligence and Work Performance. The correlation
and regression tools were used to analyze the relationship and the findings signified the role of emotional intelligence in work performance of sales executives in
insurance industry.
The above part of literature review indicates how sales people emotional intelligence improves their sales performance. The EI helps sales people in their sales
encounters, in building relationship with their customers, for cross-selling and up-selling to their customers, satisfying their customers, in generating word of
mouth, retaining customers, influencing customer decision making, , customer-oriented selling, in generating sales revenue etc. Overall, it is analyzed from this
part of literature review that EI of sales people influences their sales performance and sales success.
2.4 EMOTIONAL INTELLIGENCE AND SALES PERFORMANCE IN RETAIL STORES
Johlke and Iyer (2013) in their study have found that retail salesperson’s customer service attitudes are strongly associated with improved sales performance.
Dealing with customer problems and maintaining a smile in difficult situations are psychologically demanding for sales people. Retail service providers need to
be in a supportive, understanding atmosphere to deal with these demands effectively (Levy, Weitz and Pandit, 2008).
Customer can become very emotional about their real or imaginary problems with a retailer. Often this emotional reaction can be reduced by simply giving
customers a chance to get their complaints off their chests. Store employees should allow customers to air their complaints without interruption. Interruptions
can further irritate customers who may already be emotionally upset. For sales people it becomes very hard to reason with or satisfy an angry customer (Levy,
Weitz and Pandit, 2008).
Waterschoot et al., (2008) in their research it was found that cognitive effort and corresponding emotions of the customers play an important role in store
learning as well as both store and product learning situations.
Companies should consider selecting staff with high EI or developing the EI skills and abilities so that the employees are ready to pursue particular strategies of
customer intimacy, care and nurturing (Othman et al., 2011), which is very important in retail sales.
Bardzil and Slaski (2003) believe that the individuals with high emotional intelligence exhibit strong self awareness, interpersonal skills, adaptive in nature, have
more empathy and keep themselves calm and stress free which is very important in customer service jobs. The employees with more self awareness and who
understand others emotions will be able to provide better service to their clients or customers and hence they have advocated organizations to employ
emotional intelligence while devising organizational policies, processes and procedures – especially for employee selection, training and development, and
performance management.
Slaski and Cartwright (2002) conducted a study on management employees of a big retail organization to study the relationship between their emotional
intelligence and their stress level, health, morale, quality of working life and management performance. The study found that the managers who scored high on
emotional intelligence experienced reduced stress levels, better health and showed better performance.
Singh (2011), in an attempt to investigate the need and applications of emotional intelligence in retailing, has concluded that individual competencies such as
emotional intelligence of sales force of any organization are strong determinant of success in retail industry. The author has also urged the need of more studies
relating to EI and its dimensions in retailing.
The above literature points out the various challenges faced by retail sales people. They have to interact with different types of customers, make sales
presentations, handle their objections & complaint, negotiate, solve their problems and finally close the sale. In doing all these various tasks sales personnel
have to be self aware, adaptive, empathetic, keep themselves calm and stress free. This is possible only if sales people are emotionally intelligent. Hence it
indicates that sales people EI influences their sales performance even in retailing.

3. DISCUSSIONS AND MANAGERIAL IMPLICATIONS

Those retailers who do best job with their customers; will create “experiences” and emotional “connections” for those shoppers. They have to de-emphasizing
the actual “purchase” part of the transaction and focusing more on the customer’s personal needs or wants. They will be in effect focusing on the “customer
experience” (Anonymous, 2011). Customer experience is determined by the intensity of emotions created in specific moments not the overall experience.
Customers’ non-conscious mind categorizes and catalogues experiences according to the nature and intensity of emotions. Non-conscious emotional responses
shaped by past emotional memories determine customer attitudes, perceptions and behavior but not the conscious or rational decisions (Travis, 2013). The
attitudes, perceptions and behaviors of customers are some of the vital variables which create sales for organizations. Since customer’s past emotional
memories determine customer attitudes, perceptions, and behaviors, and retail sales people’s emotional intelligence can create such customer emotional
memories thereby creating good customer experience of the store and eventually generate sales. Hence it can be inferred that sales people’s emotional
intelligence boosts their sales performance in retail industry.

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The literature indicates the importance of sales people in retailing. It is also observed as to how much the retail store’s sales depend on sales people. Hence
managers should recognize the fact that sales people’s or sales employee’s sales performance is very important component which determines the fate of retail
stores. The literature further reveals a strong base to establish the relationship between emotional intelligence and work performance. A lot of studies have
taken place in different parts of the globe to find evidence for this relationship. In most of the studies emotional intelligence (EI) has predicted work
performance. In addition, several other studies were conducted to discover relationship between EI and sales performance. Moreover, a good number of
evidence has been found where EI predicts sales performance also but very few studies have been conducted in retailing context.
As any other sales job retail sales is also very challenging, where sales people have to interact with different types of customers to attain sales. These customers
will be in different emotional states and setups. So sales people have to deal with lot of customers who are in different emotional states such as happy, sad,
depressed, excited, angry, frustrated etc.. Even then sales people are expected get sales from such customers. While dealing with such customers, it is quite
obvious that they also get emotionally tangled and react to the customer’s emotional states directly. If a customer is emotionally sad or depressed and then the
similar emotional reaction of the sales person will further irritate the customer, which might later lead to no purchase decision, customer dissatisfaction,
disloyalty, bad word of mouth etc. If a sales person continues to do so, on a regular basis then this behavior might lead to a decline in his sales performance.
Since the entire retail store’s sales success or sales performance is directly depended on sales person’s sales performance, it becomes an imperative to the
managers of retail organizations to manage its sales team’s sales performance. Since sales person’s emotions are the root cause of the problem, their emotional
intelligence can rescue the retail stores from such situations. The sales person with emotional intelligence can deal with varied customer’s emotions or
emotional reactions in an appropriate manner and/or he will behave or respond in a way which makes customer happy, contended and satisfied which will lead
to more customer commitment, loyalty and repeat purchases and thereby increasing the sales performance of that particular employee. Hence managers in
retail industry should take necessary steps to recruit sales people with emotional competence and to improve the emotional competence of their existing sales
force to enhance their overall organizational performance.

4. CONCLUSION AND FUTURE DIRECTIONS

Emotions are an integral part of all stages of the retailing experience for customers. During their shopping experiences, consumers may experience a range of
emotions such as excitement, happiness, hope, love, sadness, fear, anxiety, anger, disgust, etc., each of which may uniquely impact consumer decision making,
purchase behavior, and interactions. Retailers are faced with the unique challenges of not only understanding and predicting the consumers’ emotions and
experiences, but also with shaping retail environments and service encounters to cultivate desired emotions and eliminate undesired emotions.
Much research has been done to find the impact of emotional intelligence on sales performance but there is less knowledge and empirical evidence to articulate
that sales people EI predicts their sales performance and sales success in retail industry. In summary, this paper indicates the need of more empirical studies to
find the role of sales personnel emotional intelligence in determining their sales performance. Since customer is the one who ultimately determines success of
sales interactions, research can be taken up to examine whether EI in sales people translate into higher levels of customer satisfaction, loyalty, trust, word of
mouth etc. which are directly related to sales success of retail sales personnel.

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