The impact of salesperson transformational leadership behavior on customer relationship marketing behavior: A study of the Sri Lankan corporate banking sector

Abstract

Purpose – The purpose of this paper is to identify the impact of transformational leadership behavior of salespersons on the level of customers' trust and customers' relationship commitment with the salespersons in the Sri Lankan corporate banking sector. Design/methodology/approach – Based on the literature, it was hypothesized that idealized influence behavior and individualized considerate behavior of salespersons positively affect customers' trust and customers' relationship commitment. A survey was undertaken among 47 sales persons in the Sri Lankan corporate banking sector, and the regression analysis was performed to test hypotheses. Findings – It was found that idealized influence behavior of salespersons positively influences customer trust, which, together with individualized consideration of salespersons, in turn influences customer commitment. It was also found that the joint effect of both customers' trust and individualized considerate behavior of the salesperson is greater than each alone on customers' relationship commitment. Research limitations/implications – The small sample and non-probabilistic sampling procedure demand further corroboration of the findings. As the relationship marketing literature stresses the coexistence of both relationship and transactional marketing, future researchers may use the full-range of leadership model. Practical implications/implications – This study shows how the two facets of transformational leadership behavior of salespersons implicate their customers' relationship marketing behavior, and thus points out how leadership development training can be adapted to improve relationship marketing skills of sales persons. Originality/value – The present paper illustrates how transformational leadership provides a more appropriate knowledge domain for understanding relationship marketing dynamics at salesperson-individual customer level.