Abstract

Marketing activities play an important role in determining sales performances for B2B companies; however, prior research implies that the effect of marketing activities in the industrial market cannot be inferred from findings in the consumer market due to their differences such as types of customers or products. We further note that B2C companies (i.e. B2B client companies) serve individual consumers, and thus, B2B sales performance can be better understood as consumer market contexts are also taken into account. In this research, we study B2B marketing activities and B2C market contexts, and their effects on B2B sales performance. To this end, we focus on three factors : sales calls conducted by B2B companies, and market commercialization and social interactions in regions where B2C companies operate. Our empirical analyses provide the following results. First, B2B sales performance improves in proportion to sales calls. When sales calls serve as the means to provide product information, they help client companies understand product benefits and make purchases accordingly. Second, B2B sales performance increases as B2C markets become more commercialized, but the effect of sales calls on B2B sales declines. Commercialized markets are more attractive to individual consumers and thus, lead to greater sales in the consumer market. However, the role of sales calls as information sources weakens as B2C companies share product information themselves and develop expertise in commercialized markets. Finally, B2B sales are greater in urban markets compared to suburbs. However, the effect of sales calls on B2B sales increases in suburban markets compared to the urban counterpart. Cohesive social interactions in suburbs hinder information diffusion among B2C companies, which in turn strengthens the role of sales calls as information sources. We theoretically contribute to the B2B marketing literature and managerially suggest strategies to improve B2B sales performance.

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