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Retailing Notes
Journal of Retailing 85 (2, 2009) 129–144

Understanding Retail Managers’ Role in the Sales of Products and Services
Todd J. Arnold a,∗ , Robert W. Palmatier b,1 , Dhruv Grewal c,2 , Arun Sharma d,3
Spears School of Business, Oklahoma State University, Stillwater, OK 74078, United States b University of Washington, Seattle, WA 98195-3200, United States c Babson College, Malloy Hall, Babson Park, MA 02457, United States d Department of Marketing, University of Miami, Jenkins Room 521, Coral Gables, FL 33124, United States a Abstract This research investigates the influence of retail chain-level activities (e.g., district supervisor directives and policies) and store manager behaviors on the sale of physical products versus services. Using data gathered within a U.S.-based retail automotive parts chain, the authors discover that to sell services, especially in competitive environments, store managers should focus on sales planning and transformative leadership behaviors, which accentuate both the long-term planning horizon and the effects of managerial actions. In less competitive environments though, a more transactional approach (e.g., selling orientation) can be effective for selling services. Alternatively, to sell products, store managers’ selling effort appears to be the most important driver of success, and a transformative leadership approach may be detrimental when the retailer faces a high level of direct competition. In total, the findings suggest that corporate chain activities, such as the level and clarity of store managers’ goals and supervisor monitoring, influence store manager behaviors, which in turn affect the sale of physical products and services. © 2008 New York University. Published by Elsevier Inc. All rights reserved.
Keywords: Retail chain-level activities; Store manager behaviors; Service versus product sales

Retailing is the second largest industry in the United States in terms of the number of both establishments and employees



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