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1 Vol. 29, No 3, 2008 Edited by / Édité par Rodney L. Stump Towson University Marketing Annual Conference Proceedings Administrative Sciences Association of Canada Halifax, Nova Scotia May 24-27, 2008 Actes du congrès annuel Association des sciences administratives du Canada Halifax, Nouvelle-Écosse mai

2 ACKNOWLEDGEMENTS It is a pleasure to present the proceedings for the Annual Marketing Division Conference of the Administrative Sciences Association of Canada and to acknowledge everyone who made this possible. First, I want to thank the numerous professors and students who have submitted papers. Next, I would like to acknowledge the reviewers, who generously contributed their time and took up the challenge of providing valuable reviews within a very tight schedule.. Appreciation is also extended to those who volunteered to serve as session Discussants and Chairs. Finally, I would also like to express my gratitude to Shamsud Chowdhury, Michael Bliemel, Harish Kapoor and Irene Lu for their helpful guidance. Thank you all for supporting our association and for contributing your ideas, energy, and scholarly work to the success of this year s conference. Rodney L. Stump College of Business and Economics Towson University REMERCIEMENTS C est un plaisir de présenter les actes de la conférence annuelle de la division de marketing de l'association des sciences administratives du Canada et pour reconnaître tout le monde qui a rendu cela possible. D'abord, je voudrais remercier les nombreux professeurs et étudiants qui ont soumis des papiers.. Après, j'aimerais reconnaître les critiques, qui ont donnés généreusement leur temps et qui ont relevé le défi de fournir de révisions précieux dans un programme serrée. L'appréciation est également prolongée à ceux qui se sont offert à servir comme intervenants et chaires de séance. En conclusion, je voudrais aussi exprimer ma gratitude à Shamsud Chowdhury, Michael Bliemel, Harish Kapoor et Irene Lu for pour leurs conseils utiles. Merci à tous de soutenir notre association et d apporter vos idées, votre énergie et votre travail académique pour le succès de cette conférence. Rodney L. Stump College of Business and Economics Towson University 2

3 REVIEWERS / ÉVALUATEURS A Manon Arcand, HEC Montreal Gerard Athaide, Loyola College of Maryland B H. Onur Bodur, Concordia University Samuel K. Bonsu, York University Johanne Brunet, HEC Montreal Ed Bruning, University of Manitoba C Colin Campbell, Simon Fraser University Serge Carrier, Université du Québec à Montréal Sylvain Charlebois, University of Regina Cristian Chelariu, Suffolk University Nancy J Church, SUNY Plattsburgh Lionel Colombel, Université d'auvergne D René Y Darmon, ESSEC Business School F Tammi S Feltham, University of Manitoba G Vincent Georgie, HEC Montreal Wen Gong, Howard University Miranda Goode, University of British Columbia E. Stephen Grant, University of New Brunswick, Fredericton Bob Graves, Keyano College Jean-Francois Guertin, HEC Montreal H Damien Hallegate, HEC Montreal Derek Hassay, University of Calgary Angela Hausman, Xavier University Tony Hernandez, Ryerson University Louise Heslop, Carleton University Joey Hoegg, University of British Columbia Maureen Hupfer, McMaster University J Richard Johnson, University of Alberta Tim Jones, Memorial University Ashwin Joshi, York University K Harish Kapoor, Acadia University Lea Katsanis, Concordia University Keri Kettle, University of Alberta Stephen Kim, Iowa State University Maxime Koromyslov, ICN Business School L Anne M. Lavack, University of Regina Zhan Li, University of San Francisco Jooseop Lim, Concordia University Irene Lu, York University M H.F (Herb) Mackenzie, Brock University Antonia Mantonakis, Brock University Franklin Manu, Morgan State University Anne Mathieu, Université de Sherbrooke Jane McKay-Nesbitt, University of Manitoba Debi Mishra, Binghamton University Bhasker Mukerji, Carleton University Michael Mulvey, University of Ottawa Feisal Murshed, Towson University N John Nadeau, Nipissing University P Catherine Parissier, Université de Sherbrooke Marie-Agnès Parmentier, York University Devashish Pujari, McMaster University Q Pingping Qiu, University of Manitoba R Sourav Ray, McMaster University Susan Reid, Bishop's University Line Ricard, University of Quebec at Montreal John Rigby, University of Saskatchewan 3

4 Richard Rosecky, Towson University S Asit Sarkar, University of Saskatchewan Reginald G. Sheppard, University of New Brunswick, Fredericton Tim Silk, University of British Columbia T Roy Toffoli, University of Quebec at Montreal Elissar Toufaily, Université du Québec à Montréal Ramesh Venkat, St. Mary's University W Daniel Wadden, St. Mary's University Fang L. Wan, University of Manitoba Mei-Ling Wei, Ryerson University Z Imen Zrelli, Institut Superieur de Gestion de Tunis Detlev Zwick, York University V 4

5 TABLE OF CONTENTS TABLE DES MATIÈRES FULL PROCEEDINGS / ACTES COMPLETS HONORABLE MENTION/MENTION HONORABLE THE INFLUENCE OF CULTURAL INTELLIGENCE ON SELLER-CUSTOMER RELATIONSHIP Seung Hwan (Mark) Lee (Student) (University of Western Ontario)..30 LES EFFETS DE LA COMPÉTENCE ET DE LA BIENVEILLANCE DU PERSONNEL DE CONTACT SUR LA PERCEPTION DE LA RÉPUTATION D ENTREPRISE : UNE ÉTUDE DANS LES SERVICES FINANCIERS Nha Nguyen, Gaston LeBlanc and André Leclerc (Université de Moncton)...48 REFLEXION SUR LES EFFETS DU DESIGN OLFACTIF DES ESPACES COMMERCIAUX SUR LE COMPORTEMENT ET LES EXPERIENCES DU CONSOMMATEUR Norchène Ben Dahmane Mouelhi (IAE de Caen Basse - Normandie NIMEC, ISG de Tunis URM) Fseg Nabeul (IAE de Caen Basse - Normandie NIMEC, ISG de Tunis URM) Karim Errajaa (Chargé d enseignement-doctorant) (IAE de l université de Toulouse I (CRG)) 65 STRUCTURAL LINKAGES AMONG MARKET ORIENTATION, INNOVATION SPEED AND NEW PRODUCT PERFORMANCE Pilar Carbonell (York University) Ana I Rodriguez Escudero (University of Valladolid).86 DOES TYPE FONT AFFECT CONSUMERS BRAND MEMORY Bianca Grohmann (Concordia University)..105 MARKETING TRENDS: CONTENT ANALYSIS OF THE MAJOR JOURNALS ( ) Said Echchakoui (Student) (University of Sherbrooke) Anne Mathieu (University of Sherbrooke)..114 A FRAMEWORK OF E-COMMERCE: A MULTI-DISCIPLINARY RESEARCH VIEW Shadi Shuraida (student) (HEC Montréal) Muhammad Aljukhadar (student) (HEC Montréal) 127 THE EFFECT OF LOGO DESIGN ON BRAND PERSONALITY PERCEPTIONS Bianca Grohmann (Concordia University)..143 THE IMPACT OF PERCEIVED MARKET ORIENTATION ON SELLER-BUYER RELATIONSHIPS Sukitha Abeysekera (Province of Manitoba) Edward R. Bruning (University of Manitoba) 152 AN INDUSTRY VIEW OF THE NATURE AND USE OF FINE PRINT IN TELEVISION ADVERTISING: A RE-ANALYSIS OF THE MUEHLING AND KOLBE (1997) DATA Rick Whiteley (Indiana University South Bend) 168 5

6 FACTORS INFLUENCING THE FREQUENCY OF SHOPPING IN A NEIGHBOURHOOD FOOD STORE: A SOCIAL CAPITAL THEORY PERSPECTIVE Pingping Qiu (Student) (University of Manitoba) Catherine Maksymiuk (Student) (University of Manitoba) Ed Bruning (University of Manitoba).182 TOO MUCH OR TOO LITTLE? PRICE DECREASES IN MULTI-COMPONENT SYSTEMS MARKETS Sourav Ray (McMaster University) Charles Wood (University of Notre Dame) Paul Messinger (University of Alberta)..197 LE SYMBOLISME DES MARQUES : UN NOUVEAU REPERE IDENTITAIRE POUR LES ADOLESCENTES DANS UN CONTEXTE DE POST-MODERNITE Bouthaina M Saad (Université de Sousse (HEC) Tunisie).220 LA FIDÉLITÉ À UN SITE MARCHAND: ANALYSE CRITIQUE DE LA LITTÉRATURE EMPIRIQUE ET PROPOSITION D UN MODÈLE INTÉGRATEUR Élissar Toufaily (étudiante) (Université du Québec à Montréal) Line Ricard (Université du Québec à Montréal) Jean Perrien (Université du Québec à Montréal).238 CONSOMMATION EXPÉRIENTIELLE D UN CONCEPT DE TÉLÉ RÉALITÉ : LE CAS DE STAR ACADÉMIE AU QUÉBEC Virginie Deroubaix (étudiante) (HEC Montréal).260 MEASURING COUNTRY IMAGE: A RESEARCH PROPOSAL Irene R. R. Lu (York University) Louise Heslop (Carleton University) PURCHASING TECHNOLOGY: DO MEN SHOP DIFFERENTLY THAN WOMEN? Elaine MacNeil (Cape Breton University) Peter MacIntyre (Cape Breton University) Sean Mackinnon (student) (Wilfrid Laurier University).304 ABSTRACTS / RÉSUMÉS NOSTALGIA: FROM HOMELAND TO THE MARKETING FIELD Yikun Zhao (student) (Concordia University) Bianca Grohmann (Concordia University)..316 YET WE HARDLY KNEW YOU: A NETNOGRAPHY OF GRIEF AND CONSUMPTION IN PARASOCIAL RELATIONSHIPS Scott K. Radford (University of Calgary) Peter H. Bloch (University of Missouri) 318 VIRAL MARKETING: MOTIVATIONS TO FORWARD ELECTRONIC CONTENT Jason Y. C. Ho (Simon Fraser University) Melanie Dempsey (Ryerson University) 319 AN EXPLORATORY STUDY OF ONLINE DIGITAL MUSIC EVALUATIONS 6

7 Min Lu (Robert Morris University) Yanbin Tu (Robert Morris University)..320 AN EMPIRICAL STUDY ON SEGMENTATION AND DYNAMINCS OF ONLINE AUCTIONS Min Lu (Robert Morris University) Yanbin Tu (Robert Morris University)..321 UNCERTAINTY AND SCRATCH AND SAVE PROMOTIONS Sungchul Choi (University of Northern British Columbia) Mootae Kim (Catholic University of Pusan) Mike Stanyer (Student) (University of Northern British Columbia).322 ÉVOLUTION DE LA RELATION ENTREPRISE-CONSOMMATEUR: ENTRE FORCE ET QUALITÉ Soumaya Cheikhrouhou (étudiant) (Concordia University) Deny Bélisle (étudiant) (Concordia University) 323 THE IMPACT OF PRODUCTS CONTINGENCY LEVEL ON THE ATTRACTIVENESS OF THE PRICE BUNDLING STRATEGY Deny Bélisle (student) (Concordia University) H. Onur Bodur (Concordia University).324 A CONFIGURATIONAL ANALYSIS OF FRONTLINE WORK BASED ON JOB SCOPE AND ROLE STRESSORS IN COMMUNICATIONS AND FINANCIAL SERVICES INDUSTRIES Jagdip Singh (Case Western Reserve University) Argun Saatcioglu (University of Kansas)..325 BRANDING CAPABILITIES DEVELOPMENT IN EMERGING ECONOMIES: AN CONFIGURATIONAL APPROACH Na Ni (student) (University of Manitoba) Fang Wan (University of Manitoba) Sheriff Luk (Hong Kong Polytechnic University) Guijun Zhuang (Xian Jiaotong University) 327 SINGULAR VERSUS COMPARATIVE JUDGMENTS: THE EFFECT OF CATEGORIZATION ON THE EVALUATION OF BRAND EXTENSIONS Harish Kapoor (Acadia University) CONSOMMATION EXPÉRIENTIELLE D UN CONCEPT DE TÉLÉ RÉALITÉ: LE CAS DE STAR ACADÉMIE AU QUÉBEC Virginie Deroubaix (étudiante) (HEC Montréal)

8 ASAC 2008 Halifax, Nova Scotia Seung Hwan (Mark) Lee (Student) Ivey School of Business University of Western Ontario THE INFLUENCE OF CULTURAL INTELLIGENCE ON SELLER-CUSTOMER RELATIONSHIP As businesses propagate toward encompassing a global mindset, cross-cultural relationship opportunities are bound to increase. Cultural Intelligence (CQ) plays a major role in facilitating cross-cultural sales relationship. In this paper, we specifically focus on the seller-customer negotiation relationship, and how CQ relates to interpersonal attraction, trust, conflict, communication quality, commitment, and performance outcomes. Business relationships involving partners from foreign countries are generally more complex and require more effort to build and maintain than domestic partners (e.g. Klein, Frazier, and Roth 1990). If this is the case, in what ways can salespeople position themselves to become more attractive to their foreign customers? What skills and attributes are necessary for sellers to develop relationships with their foreign customers? Relationship marketing refers to all marketing activities directed toward establishing, developing, and maintaining successful relational exchanges (Morgan and Hunt 1994, p.22). It attempts to integrate customers, suppliers, and partners into the firm s strategic and marketing activities (MacKenna 1991). The cornerstone of every market relationship is the exchange process that takes place to create value (Day 2000). Successful exchanges create additional value for both sides, which lays down the groundwork for an enduring partner-to-partner (e.g. seller-customer) relationship (Gronroos 2000). These exchanges are propagated by achieving mutually beneficial outcomes through a series of interactions and negotiation efforts (Dabholkar, Johnston, and Cathey 1994). People from different cultures have their own distinctive styles of approach when forming business relationships, guided by the history and political systems to which they belong (Martin and Herbig 1997; Simintiras and Thomas 1998). When individuals from different cultures interact, they may face initial difficulties. Cultural dissimilarities can lead to misinterpretation of behaviors and inaccurate impression formation, factors that can act as deterrents in developing positive relationships (Graham 1985). This is because individuals bring along their cultural assumptions, prejudices, and attitudes, all of which may hinder the interaction and the negotiation process (Martin and Herbig 1997). Because foreign cultures have the potential to instigate negative stereotypes and perceptions among individuals (Brett 2001), it is important for sellers to become cognitively aware of other cultures and their cultural disparities. Brett posits that those who become more adept with the knowledge of other cultures will have more success in dealing with foreigners than those who are not as knowledgeable. Therefore, sellers need to become culturally responsive and culturally knowledgeable in order to increase their chances of reaching target outcomes and forming budding relationships (Weiss 1994). 30

9 Globalization has increasingly put pressures on firms to form international partnerships (Adler, Brahm, and Graham 1992). As multinational and transnational companies have increased their intentions to operate abroad, negotiation opportunities with groups with diverse cultural backgrounds have propagated, along with many challenges (Tinsley 2001). In recognizing these challenges, we propose a conceptual model that explains how Cultural Intelligence (CQ) plays a vital role in successful relationship marketing. This paper is partitioned into three parts. First, we provide a literature overview of the Cultural Intelligence field. Second, we put forth propositions to relate CQ with interpersonal attraction, trust, conflict, communication quality, commitment, and performance outcomes. Lastly, we conclude by positing questions for additional research in this field and outlining the managerial implications of CQ on relationship marketing. Cultural Intelligence (CQ) Cultural Intelligence is the person s ability to successfully and effectively adapt to unfamiliar cultural settings (Earley and Ang 2003; Earley, Ang, and Tan 2006). It measures the individual s ability to understand different cultures and measures the capability to do the right thing in settings characterized by cultural diversity. CQ has also been suggested to be an essential element in facilitating effective cross-cultural interactions (Earley and Ang 2003). Within the framework of Cultural Intelligence, there are four dimensions: CQ-Strategy, CQ-Knowledge, CQ-Motivation, and CQ-Behavioral (Ang, Van Dyne, Koh, and Ng 2004; Earley et al. 2006). CQ-Strategy is the ability in which people mentally process and acquire cultural knowledge. Individuals with high CQ- Strategy will exert greater cultural consciousness and awareness when they are entrenched in a milieu of culturally diverse situations. Individuals with high CQ-Strategy have greater capacity to observe surrounding situations, have greater self-awareness to monitor their own behaviors, have greater ability to process and analyze situations, and have greater self-regulatory and problem solving skills in culturally embedded situations (Ang et al. 2004). CQ-Knowledge is the person s general understanding of how cultures differ from one another. It measures how much knowledge and data one has learned and attained about other cultures (Ang et al. 2004). Individuals with high CQ-Knowledge have a better understanding of the values and norms of other cultures. This includes the social, legal, and economic structures of different cultures (Triandis 1994). CQ-Knowledge is important because it reflects the general degree of knowledge and awareness that one has about other cultures. By knowing more and encompassing a greater amount of knowledge base about other cultures, individuals can deploy better decision making skills based on their knowledge foundation (Ang et al. 2004). CQ-Knowledge differs from CQ-Strategy because the latter looks at the ability of the individual to acquire the knowledge while the former focuses on the knowledge that has already been acquired. CQ-Motivation is the degree of one s willingness to acquire knowledge and learn about other cultures. People with high CQ-Motivation are more open to and willing to explore other cultural settings. They are intrinsically motivated to experience novel cultures and enjoy engaging in cross-cultural interactions and encounters (Earley and Ang 2003). Also, individuals with high CQ-Motivation are confident in trying out new things and are more interpersonally fit to interact in novel cultural settings. Motivation is important because knowledge alone is not enough to produce culturally appropriate responses (Earley and Peterson 2004). Lastly, CQ-Behavior is the person s capability to appropriately conduct themselves (verbally and nonverbally) in cultural interactions and settings. Behavioral responses encompass both verbal and non-verbal actions (Hall 1959). Individuals with high CQ-Behavior are better able to express words, gestures, and facial 31

10 expressions that enhance interactions and perform better in situations that are culturally contextual (Ang et al. 2004). Individuals who are better able to control their behaviors and styles in cultural embedded situations are less likely to create misconceptions. Therefore, it is important for individuals to exhibit behavioral competence in situations that are culturally bound. Earley and Ang (2003) argue that individuals who are generally high in CQ have an easier time adjusting to foreign environments, perform better in overseas assignments, and work more effectively in cultural situations. However, as an emerging concept in this field of literature, empirical research on CQ has been relatively sparse. In Ang et al. s (2004) study of international business executives, they found certain dimensions of CQ to be positively related to performance and adjustment. Their study found that CQ- Strategy and CQ-Knowledge to be positively related to task performance, CQ-Motivation to be positively related to general adjustment, and CQ-Behavior to be positively related to task performance and general adjustment. Their study also showed that individuals with high CQ-Strategy and CQ-Knowledge exhibit better cultural judgment and decision-making skills. In other CQ studies, CQ-Motivation was found to positively predict adjustment among foreign professionals (Templer, Tay, Chandrasekar 2006). Templer and colleagues showed that people with high CQ-Motivation value new cultural experiences. It is critical not to confuse CQ with other similar constructs in its field. CQ studies differ from crosscultural adjustment studies because adjustment is a measure of outcomes. Cross-cultural adjustment is the state of psychological comfort an individual experiences in his/her new cultural environment (Black 1990). It is a measurement of the individual s state or the level of success (or failure) he/she has experienced in their novel cultural environment. CQ, on the other hand, examines the person s capability to adjust to new cultures. Ng and Earley (2006) believe one of the major caveats in cross-cultural adjustment research is that researchers often link cultural effectiveness of individuals based on their outcomes of adjustment. CQ differs because it puts the core analysis on the individual s capabilities, and not on hindsight measures. Proposed Conceptual Model We propose that Cultural Intelligence is a vital component to successful international relationship marketing. As firms look towards developing successful exchanges with cross-cultural partners, we conceptualize how CQ can facilitate this relationship. From a seller s perspective, relationship marketing is primarily concerned with attracting, developing, and retaining customer relationships (Berry and Parasuraman 1991, p.133). Currently, no papers have focused on looking at how CQ influences sellercustomer relationship. The seller-customer relationship is unique to previous CQ studies (e.g. international expatriate adjustment and performance) because it is the seller who has to exhibit high levels of CQ to orient themselves towards their customers. We believe that when sellers exhibit CQ competency, there is a greater likelihood of them being perceived positively by their foreign customers. FIGURE 1 32

11 Competitive / Coordinative Behavior Approach (+/-) [P5] Past Experiences (+/-) [P6] Sellers Cultural Intelligence (CQ) CQ-Strategy CQ-Knowledge CQ-Motivation CQ-Behavior Customers Relationship Quality Variables Interpersonal Attraction (+) [P1] Trust (+) [P2] Conflict (-) [P3a, P3b] Communication Quality (+) [P4] Relationship Outcome Variables Joint Performance Outcomes (+/-) [P7a, P8a, P9a, P10a] Joint Commitment (+) [P7b, P8b, P9b, P10b] More specifically, in the upcoming sections, we offer several propositions to outline how CQ can help facilitate and develop intercultural seller-customer relationships through stronger interpersonal attraction, increase in trust, reduction in conflict, and enhancement in communication quality, and how those relationship development variables lead to increase in commitment and favourable performance outcomes (See Figure 1). Customers Relationship Quality Interpersonal Attraction. Kumar and Worm (2003) contend that when a relationship has not been established by the negotiating parties, the differences between the parties are likely to be highlighted as a result. This has the potential to induce pre-conceived beliefs and stereotypes to surface especially when the two sides are unfamiliar with one another (Simintiras and Thomas 1998). Cultural dissimilarities hinder negotiator s ability to communicate effectively with the opposing group (Padgett and Wolosin 1980). This is caused by the differences in culturally-rooted attitudes, traditions, and customs between the two parties (Shenkar and Ronen 1987). Similar individuals are more likely to show stronger interpersonal attraction than to those who are dissimilar (Rubin and Brown 1975). Salespeople who are perceived to be similar by their customers are more likely to be successful in forming relationships (Wiener and Mowen 1985). This is largely due to customers comfort in knowing that they are dealing with someone whom they can relate. Social identity theory suggests people tend to identify with members in groups that they feel they belong to and discriminate against those who are not part of the members in-group (Bhattacharya, Rao, and Glynn 1995; Tajfel and Turner 1986). It has been noted in previous research that negotiators from identical cultures have an easier time grasping each other s messages and communication patterns than those from [P11] 33

12 dissimilar cultures (Simintiras and Thomas 1998). When two sides are able to recognize each other as potential in-group members, the sides are less likely to rely on previous stereotypes triggered by demographic differences to formulate their opinions about the other party (Kumar and Worm 2003). On the other hand, out-group members are susceptible to not receiving the same courtesy and benefit of mutual trust and concern as those who are considered to be an in-group (Gelfand and Dyer 2000). Therefore, the road to building a strong interpersonal relationship is to extenuate the barrier that is first developed by demographic and attitudinal dissimilarities, and be accepted as an in-group member. Sellers who have higher cognitive awareness of the implicit theories and judgment biases of their counterparts are more likely to succeed in negotiations than those who have lower cognitive awareness (Gelfand and Dyer 2000). Sellers who are high in CQ-strategy question cultural assumptions, consider cultural norms, and anticipate cultural preferences before and during interactions with their customers (Ang et al. 2004). When sellers are better able to observe and analyze the behaviour of their counterparts, they are more likely to develop better strategies for interacting and forming stronger interpersonal relationships with customers who have different cultural backgrounds. CQ-Knowledge focuses on the acquired knowledge of norms, values, and practices of different cultural settings. CQ-Knowledge allows sellers to better use their attained knowledge to understand the similarities and differences of their customers cultures. Sellers with specific cultural knowledge are better able to appreciate and understand the schematics and systems of their customer s culture (Nisbett 2003). Encompassing a greater understanding and knowledge of a specific culture will increase familiarity, and thus, increase the likelihood for acceptance. Having more knowledge of the counterpart s culture increases the repertoire of shared commonalities that can be highlighted during the relationship formation. As a result, if the sellers are able to market their shared commonalities, the greater the likelihood of customers identifying with the sellers. Sellers with high CQ-Motivation expend more energy to acquire and learn more about their other cultures in efforts to gain a better understanding and rapport with their foreign customers. These sellers are motivated to learn about situations that are unique from their own cultural customs and how they can utilize them to develop relationships. Sellers who exhibit CQ-Motivation will appear as those who are genuinely interested in learning about their customers. This display of effort and enthusiasm will be appreciated by the customers as they are likley develop stronger interpersonal attractions. Lastly, sellers who are cognizant of their CQ-Behavior are better able to display cues and exhibit appropriate behavioral responses when with foreign customers. Sellers with high CQ-Behavior are better able to mimic the desired behaviors expected by their foreign customers. Having greater awareness of what behaviors to exhibit will reduce the amount of perceived false impressions and misconceptions. Furthermore, behaving in such a way that is more considerate will be more appreciated and acknowledged by their customers. Therefore, CQ-Behavior is also an important component in garnering customer s acceptance. Proposition 1: Each dimension of Seller s CQ (CQ-Strategy, CQ-Knowledge, CQ-Motivation, CQ- Behavior) has a positive relationship with customers interpersonal attraction. Trust. One of the central functions as a salesperson is to facilitate and develop consumer trust (Swan and Nolan 1985). Trust is viewed as a guiding recipe for successful relationships (Moorman, Deshpande, and Zaltman 1993). Morgan and Hunt (1994, p.23) define trust as the perception of confidence in the exchange partner s reliability and integrity. It is how one side expects the other to behave and respond and how reliable the party is in fulfilling his/her obligations in a relationship (Schurr and Ozanne 1985). With trust, 34

13 the risks of the counterpart behaving opportunistically are lowered (Hill 1990), the potential for conflict is reduced (Anderson and Narus 1990), and psychological gaps are bridged (Smith and Barclay 1994). Trust also provides an understanding in which the parties can work towards future exchanges (Doney and Cannon 1997). Customers are less willing to collaborate or listen if they perceive that the sellers are conducting themselves in an untrustworthy manner (Rubin and Brown 1975). Customers are more likely to extend trust when they believe the sellers are acting in such a way that yields positive outcomes and are not taking unexpected actions that will result in negative outcomes (Anderson and Narus 1990). Sellers that have high CQ-Strategy are likely to have greater understanding of what is required to garner trust from their customers. The higher level of consciousness and awareness people exhibit during their cross-cultural interactions, the lower the likelihood of behaving in such ways that can be misconstrued or viewed untrustworthy by their customers. Moreover, CQ-Strategy abilities help sellers develop tactics that are akin to developing trust with the other party. Similarly, sellers who are knowledgeable of their foreign counterparts will know what types of activities exhibit (un)trustworthy behavior. When sellers are familiar with their customer s cultural norms, values, and practices, the sellers will leverage their knowledge to garner trust from their customers. The amount of knowledge accumulated will help shape the strategy deployed and the behaviors expressed. Therefore, CQ-Knowledge is an essential component in developing trust with customers. CQ-Motivation shows the willingness to gain trust from their customers. Sellers who are high in CQ- Motivation are highly keen to learning and adapting to the customs of their customers. Also, sellers who are motivated will want to work towards developing trust with their customers. Because customers will appreciate the effort put on by the sellers, they are more likely to extend trust to their selling counterparts. Sellers who are behaviorally flexible can balance their repertoire of behaviors to better interact with others and better adjust to the culturally diverse situation. Sellers who are better able to control and exhibit appropriate behavioral responses are more likely to be viewed favorably by their customers. In essence, sellers with high CQ-Behavior are better able to please others, show cooperative tendencies, and display cues of agreement and understanding. Therefore, exhibiting the behavior that is expected by the other party is essential in developing trust with customers. Proposition 2: Each dimension of Sellers CQ (CQ-Strategy, CQ-Knowledge, CQ-Motivation, CQ- Behavior) has a positive relationship with customers trust. Conflict. We define conflict as the behaviors or feelings that one party has the potential to obstruct and interfere with the effectiveness of reaching goals in a relationship (Weitz and Bradford 1999). Conflicts arise because parties from opposite sides have varying expectations of what the settlements should be (Bonoma 1979). There are two forms of conflict that are widely recognized in the conflict literature: relationship conflict and task conflict (Jehn 1995; Reid et al. 2004). Relationship conflict refers to the interpersonal incompatibilities between sellers and customers. Relationship conflict is known to be brought on by tension, animosity, or annoyance. On the other hand, task conflict focuses less on interpersonal matters and more on the tasks at hand. Task conflict occurs when sellers and customers have disagreements regarding the content of the tasks being performed. Task conflict is known to be brought on by differences in opinions, stance, and ideas. 35

14 Conflict is intrinsic in seller-to-customer relationships (Weitz and Bradford 1999). Differences in culture have been noted as one of the antecedents of conflict (Swanson and Delia 1976). Therefore, it is important that sellers bridge the culture gap which has been known to lead to conflict. Since conflict has been known to negatively impact the current relationship and the expectation to further the relationship (Amason and Sapienza 1997), sellers need to work towards reducing the cultural distance that they have with their customers. Conflict is reduced when sellers and customers have shared values. Shared Values is the extent to which the two sides have similar beliefs regarding what behaviors, goals, and policies are important (Dwyer et al. 1987; Morgan and Hunt 1994). When sellers exhibit behaviors that are akin to the expectations of their customers, conflict is reduced. Therefore, it is the goal of all sellers to understand what is important to their customers and try to establish a common ground that bridges the two sides closer with respect to their values and beliefs. One of the ways in which sellers can reduce current conflicts and/or potential conflicts is through developing their CQ. Enhancement in CQ-Strategy allows sellers to act in a manner which is more congruent with their intercultural counterparts. Sellers who are high in CQ-Strategy will actively seek to find that common ground and values with their customers. Therefore, once congruence of shared values has been established, conflict is reduced. Therefore, CQ-Strategy reduces conflict between sellers and customers. CQ-Knowledge, likewise, can also facilitate the reduction of conflict. When sellers are knowledgeable and aware of the other s customs and norms, they are less likely to conduct themselves in a manner that will give a wrong impression or create tension. When the sellers are well-conversant about their counterparts culture, sellers will know what to do to avoid culture-related conflicts. When sellers are motivated to learn about their customer s culture, there is greater likelihood for less conflict to occur. This is because sellers are actively engaging in understanding the perspectives and the logic of their customers. By having the motivation to learn and to operate in a way that will be more acceptable by their customers, a greater understanding can be established between the two parties. As sellers question more and more to gain more knowledge about their customers, the level of interaction will inevitably increase causing the two sides to collectively formulate their shared goals. Therefore, CQ-Motivation can also facilitate the reduction of conflict between sellers and customers. Sellers with high CQ-Behavior are more likely to mimic the behaviors of their customers than sellers with low CQ-Behavior. During an interaction exchange, if the sellers are able to show cues of verbal and non-verbal behavior that improves the communication process with their customers, then there is less likelihood for conflicts to occur from miscommunication of ideas. Therefore, CQ-Behavior is essential in improving the communication process which also reduces potential conflicts. Proposition 3a: Each dimension of Sellers CQ (CQ-Strategy, CQ-Knowledge, CQ-Motivation, CQ- Behavior) has a negative relationship with customers perceived relationship conflict. Proposition 3b: Each dimension of Sellers CQ (CQ-Strategy, CQ-Knowledge, CQ-Motivation, CQ- Behavior) has a negative relationship with customers perceived task conflict. Communication Quality. Communication is a process of establishing a commonness or oneness of thought between a sender and a receiver (Schramm 1954, p.3). Successful communication is characterized by the parties willingness to share and exchange information (Dabholkar 1994). Exchange of relevant 36

15 information is integral to any negotiation process. Often, the decisions and outcomes are greatly influenced by the content and the context of what was communicated during the negotiation process. Negotiators have a tendency to imitate the strategy used by the opposing party (Pruitt 1981). In other words, if sellers are able to show that they are willing to exchange information and work on improving the communication quality, then it is likely that the customers will reciprocate. To achieve this feat, sellers must start by becoming culturally responsive to the subtleties, distinctiveness, and attributes that pertain to other cultural groups. By understanding the cultural norms and patterns of the customers, sellers will have an easier time knowing what to say, what behaviors to exhibit, and what type and frequency of information to exchange. Therefore, we propose that sellers cultural intelligence positively influences the level of communication quality with their customers. Sellers with high CQ-Strategy are better able to cognitively grasp and analyze culture-embedded situations than sellers with low CQ-Strategy. These sellers are good at understanding what strategies to deploy that will enhance the relationship quality with their customers. Therefore, sellers with high CQ- Strategy will try to reveal information about themselves, their needs, and resources when dealing with foreign customers, thereby increasing the likelihood of the customer to reciprocate with same kinds of information. Furthermore, customers will recognize the sellers effort and intentions, and will look to reciprocate by showing greater willingness to communicate with their sellers. CQ-Knowledge allows sellers to better understand the schematics and systems of their customers culture. Sellers who are knowledgeable of their customers norms and preferences will have a greater pool of resources and data to guide the communication. CQ-Knowledge also allows sellers to identify what they have in common with their customers, which can help enhance the quality of communication. CQ-Motivation also enhances the level of communication and information exchanged between the sellers and their customers. This is because CQ-Motivation requires individuals to constantly seek and learn more about the other party and their culture. As sellers begin to question more and more to gain more knowledge about their customer s culture, the level of interaction will increase causing a greater level of information exchanged by the two parties. Lastly, CQ-Behavior is also important in facilitating communication. When sellers have the capability to exhibit cues of verbal and non-verbal behaviors that customers will appreciate, then the quality of communication will increase as a result. Furthermore, efficiency of information exchange between the two groups will increase as a result. This is because with high CQ-Behavior, there is less chance that the customers will misinterpret or miscomprehend the sellers message. Proposition 4: Each dimension of Sellers CQ (CQ-Strategy, CQ-Knowledge, CQ-Motivation, CQ- Behavior) has a positive relationship with customers perceived communication quality. Competitive/Coordinative Behavior Approach. There are two basic approach strategies to negotiations competitive behavior approach and coordinative behavior approach (Pruitt 1981). Sellers who utilize the competitive behavior approach are aggressive in nature where the emphasis is on maximizing one s own gain and exploiting the customer. Sellers who utilize coordinative behavior approach are grounded in problemsolving orientation and tend to show a high degree of trust and high pursuit for cooperation. Competitive behavior approach has been known to increase role conflict, reduce total profits, and reduce satisfaction, whereas, coordinative behavior approach has been known to reduce role conflict, increase total profits, and increase satisfaction (Dabholkar 1994). 37

16 Sellers who approach customers in a competitive manner treat their exchange relationship as a zero-sum or with a win-lose mindset (Pruitt 1981). In these types of exchanges, it is common to see sellers use threats and persuasive arguments to exploit their customers. Therefore, sellers who often utilize this tactic as their primary strategy may provoke mistrust and often fall short of maximizing outcome utility in short-term (Gannon 2001). Coordinative behavior approach is geared towards generating a win-win integrative outcome (Oetzel and Ting-Toomey 2003). Researchers have suggested that a win-win integrative solution is the most favorable strategy to bargaining situations (Thompson 2005). A win-win integrative solution is an agreement which satisfies the interests of both sides, achieves higher joint gains, and it provides a framework for future exchanges. Sellers who approach customers in a coordinative manner treat the exchange as an opportunity for a long-standing relationship (Dabholkar 1994). In these types of exchanges, it is common to see sellers encouraging effective communication, sharing information at higher frequencies, and doing what ever they can to achieve joint success. Through the coordinative behavior approach, both sellers and customers can enjoy the benefits of acquiring additional information to aid the exchange process and correcting misperceptions about each others interests (Brodt 1994). Therefore, sellers should always position themselves to learn more about their customers needs, preferences, mannerisms, and cultural backgrounds in order to make more effective decisions during the exchange process. We propose that sellers who use the competitive behavior approach will weaken the relationship between Cultural Intelligence and the relationship quality variables (e.g. interpersonal attraction, trust, conflict, and information exchange). As sellers exhibit behaviors that look out for their own interests, customers will also reciprocate back in a competitive manner. On the other side of the spectrum, we propose that sellers who use the coordinative behavior approach will strengthen the relationship between Cultural Intelligence and the relationship quality variables. Proposition 5: Seller s behavior approach will moderate the relationship between CQ and customer relationship quality variables; such that a competitive behavior approach will negatively influence the relationship and a coordinative behavior approach will positively influence the relationship. Past Experiences. Individuals tend to approach business relationships with foreigners with extreme care and caution (e.g. Abramson and Ai 1999). This is because individuals from outside of their own cultural network are sometimes deemed to be untrustworthy, acquisitive, and materialistic based on predispositions (e.g. Hofstede 1991). This attitude is also invoked by previous experiences with dealing with someone outside of their culture. Blackman (1997) contends that past returns are the foundation for future gains. People place a strong emphasis on basing present judgments on past experiences (Bond 1991). This is because current relationships are entrenched in the milieu of prior engagements. Past experiences make it possible for customers to compare their preconceived expectations with the current reality (Michell, Reast, and Lynch 1998). When prior engagements or interactions have caused any distaste in the way past relationships have been formed, it will perpetuate a sense of distrust and consequently endanger future negotiation opportunities (Kumar and Worm 2003). On the other hand, if past interactions have been positive, there is a greater likelihood of individuals being more accepting and open-minded to deal with sellers of that same culture. Therefore, if customers are wary of dealing with foreign sellers based on previous experiences, then it will be that much more difficult for the sellers to garner interpersonal attraction, gain trust, reduce conflict, 38

17 and instigate cooperation. Therefore, we propose that if customers have had a negative experience with the sellers that are not from the same culture, then it will weaken the relationship between Cultural Intelligence and the relationship quality variables. On the flip side, if customers have had positive experiences with sellers that are not from the same culture, then it will strengthen the relationship between Cultural Intelligence and the relationship quality variables. Proposition 6: Customers experiences with past foreign sellers will moderate the relationship between CQ and customer relationship quality variables; such that a negative experience will negatively influence the relationship and a positive experience will positively influence the relationship. Relationship Outcomes Performance Outcomes & Joint Commitment. We define performance outcome as the degree in which the seller and the customer are satisfied with the payoffs as a result of the relational exchange. When sellers and customers have a strong relationship foundation to build on, it is likely that they will want to achieve joint gains. As a result, both sides will put effort into achieving the maximum utility outcome for both sides which increases the likelihood of achieving positive joint performance outcomes. We define commitment using the Morgan and Hunt s (1994, p.23) definition of relationship commitment. They view relationship commitment as an exchange partner believing that an ongoing relationship with another is so important as to warrant maximum efforts at maintaining it. A successful marketing relationship is characterized by commitment between the seller and the customer. Both sides have to be committed in order to progress the relationship forward. Thus, we define joint commitment as the degree in which the seller and the customer are devoted to the relationship. Being liked by the other party is important in the development of a strong interpersonal relationship (Moorman et al. 1992). Interpersonal attraction has been found to enhance bargaining outcomes (Rubin and Brown 1975), positively influence partner s satisfaction (Graham 1985), and positively influence the current negotiation outcomes and the likelihood of future exchanges (Adler and Graham 1989). In a seller-customer relationship, strong interpersonal relationships were characterized by high levels of commitment; whereas, weak socially bonded relationships were characterized by low levels of commitment (Wilson and Mummalaneni 1986). Higher degree of interpersonal attraction reduces dissimilarities and barriers which hinder relationship development and negotiation processes. It also eases the process of reaching goals and developing positive relationships. Therefore, we propose that customers interpersonal attraction with their respective sellers will have a positive effect on joint performance outcomes and joint commitment. Proposition 7a: Customers interpersonal attraction has a positive relationship with joint performance outcomes. Proposition 7b: Customers interpersonal attraction has a positive relationship with joint commitment. Trust is an important indicator for understanding expectations for cooperation. Trust also helps understand the needs of each other (Hallen, Johanson, and Seyed-Mohamed 1991). In Schurr and Ozanne s (1985) simulation study of industrial purchasing, the researchers found that trust affected buyer attitudes and behavior with respect to their current supplier. Moreover, low/high trust was found to be negatively/positively related to favorable attitudes, communications, and bargaining behavior. When customers trust their sellers, they will have faith that the sellers will act in their best interests, while still trying to achieve their own company s goals. This is similar to how Anderson and Narus (1990, p.45) defines trust 39

18 as the firm s belief that another company will perform actions that will result in positive outcomes for the firm as well as not take unexpected actions that result in negative outcomes. Trust in a relationship partner increases the willingness to exchange and achieve joint successes with that partner (Moorman et al. 1992). This increases the likelihood of achieving joint outcomes as the sides will be looking out for the needs of one another. When needs are openly expressed and shared between the parties, it assists aligning perceptions and expectations about each other which increases the chances of meeting those needs. Furthermore, trust also fosters relational continuity between exchange partners (Morgan and Hunt 1994). As customers extend trust to their sellers, customers are willing to put investment into the relationship. From the sellers point of view, sellers are now seeing this as an opportunity to pursue a long-standing relationship with that partner. Therefore, gaining customer trust paves the way for relationships to cultivate and outcomes to materialize. Proposition 8a: Customers trust has a positive relationship with joint performance outcomes. Proposition 8b: Customers trust has a positive relationship with joint commitment. Conflict occurs when customers and sellers have different expectations or incongruence in values, beliefs, and norms. As well, it can occur because of varying attitudes, preconceived stereotype assumptions, misinterpretation of behaviors, language barriers, and other environmental factors (i.e. regulations, political bureaucracy, legislative policies) (e.g. Blackman 1997). When conflict is present, it is difficult for customers and the sellers to reach their desired objectives. When conflict is reduced between the two sides, there are less barriers and obstacles that obstruct their willingness to work together towards a common goal. As a result, conflict disrupts the likelihood of achieving positive joint relationship outcomes, and as well, deters their desire to work with one another. Therefore, we propose conflict is detrimental to joint performance outcomes and joint commitment. Proposition 9a: Seller-customer conflict has a negative relationship with joint performance outcomes. Proposition 9b: Seller-customer conflict has a negative relationship with joint commitment. Lastly, high communication quality enhances joint performance outcomes. As mentioned previously, successful communication is characterized by the parties willingness to share and exchange information (Dabholkar 1994). Because decisions and outcomes are heavily influenced by the content of what is being communicated, when sellers have achieved a good exchange pattern with their customers, chances for misinterpretation of the messages, miscommunication, and tendencies to hide information are greatly reduced. When sellers and customers emphasize open communication and willingness to share information at a higher frequency, the likelihood of setting joint goals and achieving them will increase as a result. Proposition 10a: Seller-customer communication quality has a positive relationship with joint performance outcomes. Proposition 10b: Seller-customer communication quality has a positive relationship with joint commitment. A successful joint outcome is a good indicator of how positively the relationship is unfolding. When outcomes are positive, customers will have more faith in the relationship. As they begin to invest more in the relationship, customers will look to improve on the relationship knowing that they can continue to achieve 40

19 successful joint gains. A committed individual is a person who believes the relationship is worth investing in because he/she sees the potential benefits of doing so (Blois 1998). From a customer s perspective, increase in commitment in the relationship will further increase the level of interpersonal attraction, trust, and communication quality, and decrease the level of conflict. This is because when individuals are committed into a relationship, they are motivated to maintain and further the relationship (Moorman et al. 1992; Rusbult 1983). This can be achieved through maintaining and developing the relationship quality variables. Proposition 11: Relationship outcome variables (e.g. joint performance outcomes, joint commitment) positively influence relationship quality variables (e.g. interpersonal attraction, trust, conflict, and communication quality). Closing Discussion Recent research suggests that in order to improve the effectiveness of salespeople in marketing roles, managers need to place greater emphasis on customer orientation and encourage their salespeople to exercise adaptive selling (Siguaw, Brown, and Wilding 1994; Sprio and Weitz 1990). Also, in light of perpetuating the idea of relationship marketing, the objectives of salespeople have changed to focus on developing longterm relationships with customers (Cravens 1995). In an era of heightened globalization, the intensification of economic interdependence across cultures has amplified the need for coofperative behavior in the international marketplace. As a result, opportunities to work with people from other cultures have proliferated. However, sellers from different cultures are unlikely to share similarities and commonalities with their customers which can lead to interpersonal and communication barriers. To extenuate this effect, sellers must be sensitive to the cultural norms, preferences, and ideologies of their customers. Overcoming intercultural barriers and incompatibilities will lay the groundwork for future gains and formulations of relationships with individuals from different cultural backgrounds (Kumar and Worm 2003). Was in which sellers can closely adapt to their customers is by developing their Cultural Intelligence. Sellers who attain a well developed CQ can better adapt to the customers cultural norms, behaviors, and styles. Overall, we proposed that sellers who are high in the multiplex dimensions of CQ will have an easier time developing customers interpersonal attraction, garnering customers trust, and reducing potential conflicts with their customers. Understanding Cultural Intelligence and how it influences the seller-customer relationship is important and relevant to international marketers. As sellers increasingly deal with customers outside of their culture, it is important for sellers to be cognizant of their customers cultural attitudes and adjust appropriately to build a relationship foundation. Developing relationships and negotiating skills are important and necessary attributes to all managers (Stuhlmacher and Walters 1999), especially to those who frequently engage transactions across varied cultures (Fayerweather and Kapoor 1972). Therefore, sellers need to have the learning ability, the knowledge, the motivation, and the behavior flexibility to bridge the intercultural gap and attain greater success in building long-term relationships. The purpose of this paper was to highlight some of the key characteristics of Cultural Intelligence, and to show how it influences seller-customer relationships. Given the dense complexity of literature on crosscultural relationships, we encourage researchers to continue to explore the dynamics which influences the seller-customer relationship. Also, given the lack of depth of empirical studies in the CQ field, we encourage researchers to test the proposed propositions espoused in this paper. 41

20 The managerial implications of this paper are many as we hope to influence how firms hire and prepare salespeople for their prospective cross-cultural encounters with their customers. For firms who frequently deal with international customers, they should look to recruit individuals who are well-equipped with the dimensions of Cultural Intelligence. If not, then the firms should try to implement training programs to better prepare their salespeople with these cross-cultural encounters. As proposed by our conceptual framework, encompassing a greater CQ mindset enhances relationship quality and produces favorable relationship outcomes. Therefore, by having a greater understanding of CQ, marketing managers can identify and prepare sellers for the unique challenges that cultural differences illuminate. References Abramson, Neil R. and Janet X. Ai (1999), Canadian Companies Doing Business in China: Key Success Factors, Management International Review, 39 (1), Adler, Nancy J., Richard Brahm, and John L. Graham (1992), Strategy Implementation: A Comparison of Face-to-Face Negotiations in the People s Republic of China and the United States, Strategic Management Journal, 13 (March), Adler, Nancy J. and John L. Graham (1989), Cross-Cultural Interaction: The International Comparison Fallacy? Journal of International Business Studies, 20 (3), Amason, Allen C. and Harry J. Sapienza (1997), The Effects of Top Management Team Size and Interaction Norms on Cognitive and Affective Conflict, Journal of Management, 23 (4), Anderson, James C. and James A. Narus (1990), A Model of Distributor Firm and Manufacturer Firm Working Partnership, Journal of Marketing, 54 (January), Ang, Soon, Linn Van Dyne, and Christine Koh (2006), Personality Correlates of the Four-Factor Model of Cultural Intelligence, Group and Organization Management, 31 (February), Ang, Soon, Linn Van Dyne, Christine Koh, and Kok-Yee Ng (2004), The Measurement of Cultural Intelligence, Paper Presented at the Academy of Management Conference, New Orleans, LA. Berry, Leonard L. and A. Parasuraman (1991), Marketing services: Competing Through Quality, New York, NY: The Free Press. Bhattacharya, C.B., Hayagreeva Rao, and Mary Ann Glynn (1995), Understanding the Bond of Identification: An Investigation of Its Correlates among Art Museum Members, Journal of Marketing, 59 (October), Black, J. Stewart (1990), The Relationship of Personal Characteristics with the Adjustment of Japanese Expatriate Managers, Management International Review, 30 (2), Blackman, Carolyn (1997), Negotiating China: Case Studies and Strategies, St. Leonards, NSW, Australia: Allen & Unwin. 42

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