DETERMINANTS OF SALES PERSON PERFORMANCE: THE CASE OF AWASH WINE SC

Abstract

Effective sales person contributes to business’s high sales volume and to its long-term survival. Cognizant of this, business organizations strive to build their sales person’s through various ways. However, sales person’s performance is affected by different factors. The objective of this study was to investigate determinants of sales person’s performance of Awash wine SC. To this end, employing quantitative research approach; specifically, explanatory design, a total of 208(female=120 and male=88) respondents participated in the study using comprehensive sampling technique. Data were collected using a pilot-tested structured questionnaire with a five-point Likert scale. Data analysis was conducted using SPSS version 22. Specifically, frequency, mean, standard deviation, Pearson Correlation and multiple linear regressions were applied. Findings show that sales person’s performance was low in Awash wine SC in the study area because respondents scored below the average (Mean=1.621) on the majority of the items used to measure sales person’s performance. Pearson correlation show that sales person’s performance has significant positive relationship with selling skill (r=0.570, p<0.01), with salary and benefits (r=0.275, p<0.01), commission (r=0.560, p<0.01), with recognition (r=0.453, p<0.01) and supervisory support (r=0.652, p<0.01. Analysis of multiple linear regression showed that the predictor variables; supervisory support, salary and benefits, recognition, commission, selling skill, and role perception have significant effects on sales force performance. More importantly 65% of the variance in the model can be predicted using the independent variables or in simple words 65% of sales person’s performance is explained by the constructed independent variables. Analysis of beta coefficients confirmed that supervisory support (β=0.439, p =.000) was the strongest predictor of sales force performance followed by recognition (β = 0.375, p = .000), selling skill (β=0.257, p=.048), commission (β0.110, p=0.012) and salary and benefits (β =.007, p=0.006). It is recommended that much focus should be given on structures and systems for recognition of a representative’s efforts which are often overlooked by manufacturing firms. Rather than more elaborate and costly systems, more simple acts of recognition need to be implemented. They may be carried out at supervisory level rather than at organizational level.