The influence of Emotional Intelligence on Sales...
Transcript of The influence of Emotional Intelligence on Sales...
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“The influence of Emotional Intelligence on Sales Performance at Financial Service firms.”
A Research Proposal presented to:
The Graduate School of Business
University of Cape Town in partial fulfilment of the requirements for the
Master of Business Administration Degree
By: Jason Stanley
MOD274
Modular Program ‟09-„10
December 2010
Supervisor: Jean-Michel Jaquet
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PREFACE
Acknowledgements
There are people who assisted me completing this research report, which I would like to thank.
To the financial sales managers at Cape Province Financial Sales firms for agreeing to participate in
this research, in particular StanLib (Pty) Ltd for their participation and valuable advice – Thank-
you.
Thank-you Jean-Michael Jaquet for your calming supervision during this demanding time.
Thank-you Dino at the London Psychometric Laboratory in the United Kingdom, for helping me
obtain the correct Trait Emotional Intelligence Questionnaire and for addressing several of my
questions related to this study.
To my friends on the MBA program over the past two years, thank-you for all your support and
making it such a worthwhile experience I will never forget.
Lastly thank-you to my family for all your support over this entire MBA program. I am very
blessed to have you.
I certify that except as noted above the thesis is my own work and all references used are accurately
reported in footnotes.
Signed: Jason Stanley
Date: December 2010
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Abstract
Identification of the features that influence the performance of sales professionals is an undertaking
that has lasted for decades. The outcomes of such studies are especially valuable to financial sales
professionals. In the current study, higher emotional intelligence is hypothesized as being
positively related to sales person performance at Cape Province Financial Service Firms.
A Trait Emotional Intelligence Questionnaire (self-report measure) was sent to sales persons whose
managers had confidentially rated as either Top or Bottom sales performers. Quantitative and
demographic data was assembled, investigated, and statistical methods were used to test the
hypothesis.
Although the findings of this study indicate a weak link is observable, this study finds sales
performance is not statistically significantly related to emotional intelligence levels. Based on these
findings, suggestions for future research in the recently established field of emotional intelligence-
sales performance are presented.
KEYWORDS: Emotional Intelligence, Sales Performance, Trait Emotional Intelligence, Self-
report, Financial Sales Performance.
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Table of Contents
Preface ........................................................................................................................................................... 2
Acknowledgements ............................................................................................................................................... 2
Abstract ..................................................................................................................................................................... 3
List of tables ............................................................................................................................................................. 5
List of figures ........................................................................................................................................................... 5
Plagiarism declaration......................................................................................................................................... 6
1 INTRODUCTION .................................................................................................................................... 7
1.1 Research Area and Problem ................................................................................................................... 7
1.2 Research Questions and Scope .............................................................................................................. 9
1.3 Research Assumptions ............................................................................................................................10
1.4 Research Ethics ..........................................................................................................................................11
2 LITERATURE REVIEW ..................................................................................................................... 12
2.1 Emotional Intelligence and Sales Performance .............................................................................12
2.1.1 The Beginning – Social Intelligence .......................................................................................................... 12
2.1.2 Multiple Intelligences ..................................................................................................................................... 12
2.1.3 EI to mainstream .............................................................................................................................................. 13
2.2 Different Emotional Intelligence Models .........................................................................................15
2.2.1 The ability-based model ................................................................................................................................... 15
2.2.2 Mixed models of EI ........................................................................................................................................... 16
2.2.3 Trait EI model ..................................................................................................................................................... 16
2.3 EI Measures: Ability vs. Self-report ....................................................................................................17
2.4 Conclusion ...................................................................................................................................................19
3 RESEARCH METHODOLOGY .......................................................................................................... 20
3.1 Research Approach and Strategy ........................................................................................................20
3.2 Research Design, Data collection methods and Research instrument ..................................21
3.2.1 Research design ................................................................................................................................................ 21
3.2.2 Data Collection Methods ............................................................................................................................... 22
3.2.3 Research Instruments .................................................................................................................................... 22
3.3 Sampling .......................................................................................................................................................25
3.4 Research Validity and Reliability ........................................................................................................28
3.5 Data Analysis methods .............................................................................................................................29
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3.6 Characteristics of the sample ...............................................................................................................31
3.7 Research Analysis and Discussion .....................................................................................................34
3.8 Research Limitations ..............................................................................................................................36
4 RESEARCH CONCLUSIONS ........................................................................................................ 38
5 FUTURE RESEARCH DIRECTIONS ......................................................................................... 39
BIBLIOGRAPHY ........................................................................................................................................ 41
APPENDICES .............................................................................................................................................. 46
List of tables
TABLE 1 - DEMOGRAPHICS 31
TABLE 2 - EI RESULTS 32
TABLE 3 - AGE CHARACTERISTICS 32
TABLE 4 - EI RESULTS BY CATEGORY 33
TABLE 5 – COMPARATIVE TEIQUE STUDIES 34
List of figures
FIGURE 1 - EMOTIONAL INTELLIGENCE'S CONCEPTUALIZATION AND SCOPE 13
FIGURE 2 - SURVEY PARTICIPANTS 26
FIGURE 3 - SIX SECONDS ORG. STUDY OF EI AND AGE 27
FIGURE 4 - AGE-EI SCORE RELATIONSHIP IN THIS STUDY 27
FIGURE 5 - EI SCORES 33
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Plagiarism declaration
I know that plagiarism is wrong. Plagiarism is to use another‟s work and pretend that it is one‟s
own. I have used the APA convention to citation and referencing. Each contribution to, and
quotation in this report from the work(s) of other people has been attributed, cited and referenced.
This report is my own work. I have not allowed, and will not allow, anyone to copy my work with
the intention of passing it off as his or her own work.
Signed: _________________________________
Jason Stanley
December 2010
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1 INTRODUCTION
1.1 Research Area and Problem
Historically much is written on the features of top performing salespeople, who achieve superior
sales performance in relation to their peers. Variables determining sales performance have
interested marketing researchers for a long time (Churchill, Ford, Hartley, & Orville, 1985). The
purpose of this study is to measure the influence of Emotional Intelligence (EI) levels of
salespeople against their sales performance, within the Cape Province Financial Services (CPFS)
Industry in South Africa. This study seeks to gauge whether CPFS salespeople‟s EI scores impact
their sales performance. The financial services industry is driven to constantly innovate and make
most efficient use of resources. Consequently, this research may be of benefit to all CPFS firms
selling a product or service.
Previous research assessed variables relating to a salesperson‟s physical characteristics, such as
height, weight, attractiveness, and age; personality characteristics, including gregariousness,
extroversion/introversion, self/other orientation; and various other characteristics, such as
intelligence, similarity to buyers, education, and so on. However, the results of previous research
have often been inconclusive (Ford, Orville, Gilbert, & Hartley, 1988). A limit on previous
research is based on the fact that many of the variables are not easy to implement (e.g., similarity to
buyer), measure (e.g., personality characteristics) or are not changeable (e.g. cognitive intelligence)
(Rozell, Pettijohn, & Parker, 2006). Nevertheless the pursuit continues for variables that infuluence
sales performance, which are implementable, measurable and changeable.
This research is motivated by the observed evidence of individual different variables of EI
(Goleman 1995, 1998; Mayer & Salovey 1993, 1995). It is theorized EI affects several workplace
circumstances including sales performance, job satisfaction, absenteeism, organizational
commitment, and leadership (Cooper & Sawaf 1997; Gates 1995; Goleman 1995; Megerian &
Sosik 1996, 1999; Wright, Bonett, & Sweeney 1993). The fact that EI is measurable is important
for sales performance research. Additionally, and perhaps of more significance is the fact that by
measuring EI, salespeople may discover their EI score is not adequate to attain optimal sales
performance. In such a situation, salespeople may through training increase EI levels. According to
Goleman (1995; 1998), unlike Gates (2000) EI is changeable.
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Rozell et al (2006) conducted a study finding that emotional intelligence is significantly related to
sales performance. Further specifically EI-Sales Performance research is notably absent in
academic literature.
If this study confirms EI is positively related to sales performance, there is also the possibility this
research could have a broader beneficial application for various sectors outside of CPFS where
sales take place.
This research measures the EI of two separate groups within the CPFS Industry. The two groups
are: 1. „Top 20% Performing Salesperson‟ (within their respective sales team) and 2. „Bottom 20%
Performing Salesperson‟ (within their respective sales team). These two groups were selected from
a number of CPFS firms, agreeing to participate in this research. Each surveyed participants EI
score is measured. Survey participant‟s data is then collated within their relevant group. The two
groups EI data is then compared, and tested for correlation to sales performance.
The significance of this research lies firstly in terms of its contribution to the body of knowledge, as
it provides an extension to research conducted by Rozell and others (Rozell et al, 2006). Rozell et
al‟s study found EI positively related to sales force performance of a USA firm engaged in the sale
of medical devices. Their study applied several self-report scales to measure sales performance
and EI. For research purposes, this study will add to the lack of EI testing in the financial service
sector. It also serves as a yardstick for future research to consider the use of a self-report
questionnaire, in particular the Trait Emotional Intelligence Questionnaire (TEIQue-SF).
Moreover, the results of the research could be meaningful outside of academia to business
managers and especially sales managers, who may benefit from further knowledge to increase their
sales. The research will be of importance to business people linked to sales, if it can provide further
knowledge of factors that may increase sales rates at financial service firms. This would
consequently improve financial service firms‟ levels of service and profits. The significance is in
the knowledge that sales peoples increased ability may better future sales performance. The
importance in understanding the impact of this research is based on two perspectives.
(1) Assessing new salesman recruits: With added foresight that new hires with higher EI
levels are likely better salespeople, managers can make more informed hiring decisions. This could
lead to the selection of more successful sales teams.
(2) Assessing of existing salespeople: Sales managers can evaluate the EI of existing
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salespeople; and where necessary apply strategies to increase EI levels. This could potentially
increase sales performance and profitability.
1.2 Research Questions and Scope
The intention of the research is to understand the influence of EI on sales person performance at
CPFS firms. The main hypothesis under investigation is therefore stated as:
Hypothesis 1:
H0: There is no difference between the mean EI scores of Top and Bottom performing
salespeople at CPFS firms.
H1: There is a difference between the mean EI scores of Top and Bottom performing salespeople
at CPFS firms.
Sales persons from various Cape Province Financial Services firms were investigated. The scope of
the research was limited to eight separate sales teams across three separate SAFS firms. The
financial sales people surveyed sell financial products to end consumers or to other financial
brokers. No sales managers were surveyed for EI.
In terms of scope, this study elected to focus exclusively on the two separate groups. Firstly „Top‟
performers, who are amongst the „Top 20% Performing Salespersons‟ (within their respective sales
team). Secondly, „Bottom‟ performers who are amongst the „Bottom 20% Performing
Salespersons‟ (within their respective sales team). Sales people „in the middle‟ were not surveyed,
or their data was omitted if they did erroneously respond.
The sample of salespersons surveyed market a wide range of financial products, including asset
management, wealth management, unit trust interests, debt management plans and formal debt
review processes for both institutional investments and individual investments.
This study aimed to identify if there is a causal relationship between salespeople with higher EI
scores and higher sales performance at CPFS firms. Future studies will be able to expand on,
support or deny the claims made in this study.
The importance of this study from a business management perspective is that it may reveal findings
that influence how sales force recruitment and sales training policies are reviewed and enhanced in
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future.
The time frame of approximately 10 weeks was used for the research, and this may have limited the
opportunity of reaching a wider participation on survey of CPFS salespersons.
1.3 Research Assumptions
Some of the main assumptions fundamental to this research are the epistemological and ontological
assumptions, regarding the nature of this research.
From an epistemological perspective, a positivist epistemological position is taken with the
research in this study. Empirical and statistical analyses of data representing social reality (Sales
Performance and EI scores), using robustly reviewed academic models were used during this study
to determine outcomes (t-test & Levene‟s test).
Positivist research should apply research methods advocating facts being collected, rather than
personal values of study participants e.g. the researcher (Bryman & Bell, 2007). This research
adopted a quantitative approach, using a statistical model (i.e. TEIQue-SF EI self-test) that is
independent of the researcher‟s influence.
The other assumptions for this research relate to the main question. Firstly, the Cape Province
Financial Services industry is broad and it might not be easy to identify sales managers/sales people
interested in investing time in an EI survey. There are also issues around confidentiality of sharing
employee information with people outside their firm. This proposal is based on the assumption
there is a sufficient number of sales managers and salespeople at CPFS firms willing to participate
in this research.
It is also assumed that sales managers will provide accurate lists of their Top & Bottom sales
performers. „Top sales performers‟ will be considered to be in their respective firm/sales team‟s
Top 20% of sales performers. „Low sales performers‟ are considered to be in the respective firms‟
bottom 20% of sales performers. Sales Performance in this study is reliant on the advice from
respective sales managers. It was agreed by all sales managers that their assessment of Top and
Bottom performing salesperson is based closely on net profit generated for the firm, which is
usually related to income generated by the salesperson.
There may be firms unidentified by the researcher interested in EI measurement. However, this will
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not be a critical factor in the research because a deliberate sampling will be done. A representative
selection will be done to cover for a representation of the SAFS industry view.
1.4 Research Ethics
No ethical problems were encountered in this research.
Permission was obtained from the various sales managers of all CPFS firms and sales teams
requested to participate in this study. All sales people and sales managers participating in this study
remained anonymous. A guarantee of anonymity was assured to survey participants. All
respondents were over 18 years of age and were company employees at reputable CPFS firms.
All survey data was stored in Excel spreadsheets on secure drives.
An ethical clearance form was submitted online and approved by the University of Cape Town
(UCT) Ethics Committee.
The EI model and survey used was the TEIQue-SF EI self-test, designed to measure a person‟s
Global Trait EI. Permission to use this test for academic purposes appears on London Psychometric
Laboratory‟s (LPL) website - www.psychometriclab.com. Permission to use the test was also
confirmed via email with LPL.
Ethical considerations for this research include linking names to data obtained that could
compromise the images of the survey participants involved. This was addressed by only working
with data that will not be linked to the surveyed individuals if it has a potential to jeopardize them
or their company. Data will be presented in codes that cannot be linked to the subjects surveyed.
Also, the personal details collected will be treated as confidential, and no response will be linked to
individuals.
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2 LITERATURE REVIEW
2.1 Emotional Intelligence and Sales Performance
2.1.1 The Beginning – Social Intelligence
Thorndike (1920) a psychologist from Columbia University was the first to propose the concept of
Social Intelligence. Thorndike said, “Social Intelligence shows itself abundantly in the nursery, on
the playground, in barracks and factories and salesrooms, but it eludes the formal standardized
conditions of a testing laboratory” (Thorndike, 1920). Thorndike proposed that additional abilities
exist and need to be viewed separately from general intelligence. Thorndike‟s main suggestion was
that the understanding and perception of our personal feelings, as well as those of others, is a
separate type of intelligence from one‟s general intelligence (Thorndike, 1920).
By the late 1950‟s Wechsler a dominant psychologist in his day who created what still remains one
of the most widely used measures of IQ, dismissed social intelligence. Wechsler viewed Social
Intelligence as, general intelligence applied to social situations (Wechsler, 1958).
2.1.2 Multiple Intelligences
Gardner (1983), expanding on Thorndike‟s concepts developed a theory of multiple intelligences.
Gardner suggested a more complex set of capabilities would allow for better measurement and
development of other kinds of intelligence. Gardner‟s main point in his theory of multiple
intelligences tried to provide an understanding that intellectual activities can exist independently of
each other.
Salovey and Mayer (1990) suggested a more focused division of intelligences. Defined as the skill
to understand emotions and feelings in oneself and others and to use this understanding as a way to
solve problems and regulate behavior; the phrase „emotional intelligence‟ was born.
Following this explanation, the theory of EI is suggested to involve three abilities. Firstly, appraisal
and expression of emotion; secondly, regulation of emotion; and lastly, utilization of emotion as
intelligence. See Fig 1 below.
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Figure 1 - Emotional Intelligence's Conceptualization and Scope
Source: (Salovey & Mayer, 1990)
Expression of emotion includes the ability to express personal emotions verbally and nonverbally,
and also to perceive and understand the emotions of other people. Regulation of emotion includes
the ability to be skillful at using emotion to influence moods in one‟s self and others. Lastly,
utilizing emotional intelligence, suggests an emotionally intelligent person is able to use their
emotions to successfully choose more effective solutions to their problems (Salovey & Mayer,
1990). This theory provided an important basis for future research about emotional intelligence.
2.1.3 EI to mainstream
Goleman (1995; 1998) is credited to have brought the theory of emotional intelligence into
mainstream thinking. As a model, Goldman suggested emotional intelligence encompassed five
parts: self-awareness, self-regulation, self-motivation, empathy, and social skills. Each of the five
competencies is proposed to have an impact on the way a person observes and responds to all life
experiences. Goleman‟s (1995; 1998) views seem to relate closely to the behavior and traits of a
successful salesperson.
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To do well, the salesperson needs to have control of and self-awareness of their feelings. Rozell et
al., (2006) suggest in the field of personal selling, salespeople face denial, rejection, role conflict,
and role ambiguity; and frequently take on these challenges without the support common in other
forms of employment. When salespeople are faced with disrespect and negative responses they
need to be able to separate themselves from negative results. Correspondingly, when salespeople
are faced with positive results they need to be aware of their part in producing those results. Thus it
appears better self-regulated salespeople have advantages over there lesser well self-regulated sales
peers (Rozell et al., 2006).
Self-regulation is linked closely to behavior, because it encompasses self-control, adaptability, and
self-monitoring within a situational context. Additionally, behaviors such as empathy and
motivation are argued to influence the way people recognize events and indirectly influence their
reactions (Goleman D. , 1995).
Self-motivation is another important factor in successful salespeople. Ford et al. (1988) suggested
that when it comes to optimal salesperson selection; the best natural features a new recruit should
possess are related to EI and motivation. Sojka & Deeter-Schmelz (2002) suggested a component
of EI is self-motivation, and they expected a positive relationship between EI and motivation.
Salespeople are often „in the field‟, and as a result directly unsupervised. As a result of this lack of
direct supervision, self-motivation is often an important factor in determining successful sales
performance. In many aspects of a salespersons role such as cold calling, dealing with busy
customers, price negotiations etc., self-motivation is often important.
Another feature often thought to be important for successful sales is empathy. Spiro & Weitz
define empathy as "the reaction of individuals to the observed experiences of other individuals"
(1990, p. 63) and argue that empathic capacity is directly related to sales ability. Their reasoning is
that these skills allow the seller to incorporate useful information during sales presentations to
improve sales techniques with potential buyers with mixed needs. Thus, the better a sales person
can empathise with their customers, the more likely their sales performance is likely to benefit
because of better-tailored solutions towards customers empathetic needs (Spiro & Barton, 1990).
Lastly, the sales environment frequently involves a great deal of social interactions.
Conferences/Business drinks etc. are often an important part of the sales job function. Thus,
Goleman‟s (2005) last factor of emotional intelligence, social skills, would appear to be closely
connected to sales performance.
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Since these above listed characteristics making up EI are said to influence sales performance, it is
reasonable to believe that a higher EI score is a factor that will result in improved sales
performance.
2.2 Different Emotional Intelligence Models
Various different models have been put forward as the definition of EI, and there is a difference of
opinion as to what the most appropriate classification is. (Mayer, Salovey, & Caruso, 2008)
There are three main models of EI:
Ability EI models
Mixed models of EI
Trait EI model
There is disagreement amongst the various models on two main points. Firstly, regarding the
terminology (i.e. study of terms) and secondly regarding operationalizations (i.e. process of
specifying the extension of a concept) referred to in each model. Because the EI field is growing so
rapidly, regular re-evaluation of researchers‟ definitions is common.
2.2.1 The ability-based model
Salovey et al‟s (2008) most recent definition of this EI model involves the ability to perceive
emotion, integrate emotion to facilitate thought, understand emotions and to regulate emotions to
promote personal growth.
Salovey & Grewal (2005) suggested the ability model sees emotions as valuable sources of
information that assist people to make sense of and navigate their social interactions.
This model suggests people differ in their ability to process information of an emotional nature, and
in their ability to utilize that emotional information. This ability is seen to make itself apparent in
four types of ability:
1. Perceiving emotions (of others and in oneself)
2. Using emotions (to channel emotions to facilitate cognitive needs)
3. Understanding emotions (recognising relationships among emotions)
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4. Managing emotions (in ourselves and others)
Bradberry & Su (2003) argued the ability model lacks face and predictive validity in the workplace.
2.2.2 Mixed models of EI
As discussed above in this literature review, Goleman (1998) suggested EI centres on a wide range
of capabilities and skills that enhance people‟s performance. Goleman's model (1998) puts forward
five main EI traits.
1. Self-awareness (ability to read one's emotions and use „gut‟ to make effective decisions)
2. Self-management/regulation (ability to control one's emotions and adjust to changing
conditions)
3. Self-motivation (ability to improve one‟s emotions)
4. Social awareness/Empathy (ability to sense, understand, and react to others' emotions)
5. Relationship management (ability to motivate, persuade, and advance others while
managing disagreement)
Inside each trait of EI, Goleman (1998) suggests a group of emotional competencies. These
competencies are not natural talents, but to a certain extent learned abilities that can be improved if
trained and developed. Goleman also suggests that people are born with a general emotional
intelligence that to a large extent establishes their capability for learning emotional competencies
(Boyatzis, Goleman, & Rhee, 2000).
Mayor, Roberts & Barsade (2008) critique Goleman's model of EI‟s mixed-in traits lack a primary
focus on EI. Mayor et al. suggest variables included in mixed models such as assertiveness and
need for achievement are important to study as part of EI.
2.2.3 Trait EI model
Petrides et al. (2007) suggested a difference between the ability based model and a trait model of
EI. Petrides & Furnham (2000) suggested Trait EI to be a collection of emotional self-perceptions
located at the lower levels of personality. This definition of EI includes behavioral characteristics
and self-perceived abilities. Petrides & Furnham (2001) suggest Trait EI should be examined
within a personality framework. An alternative label for Trait EI is trait emotional self-efficacy.
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The trait EI model builds on the Goleman‟s mixed model discussed above. Petrides & Furnham
(2000) go on to suggest the conceptualization of EI as a personality trait leads to a construct that
lies outside the structure of human cognitive ability. This is an important distinction in that it bears
directly on the operationalization of the construct and the theories and hypotheses that are
formulated about it (Petrides & Furnham, 2000).
2.3 EI Measures: Ability vs. Self-report
Deciding what type of test to use to measure EI is a contentious issue.
In MacCann, Matthews, Zeidner, & Roberts, (2003) psychological assessment of EI, reviewing
Self-Assessment and Performance based testing, it was found self-report techniques measure a
dispositional construct, that may have some predictive correlation, but which is highly correlated
with personality and independent of intelligence. Performance based measures were also found to
have restrictions especially when scored based on consensual norms which leads to problems of
skew and restriction of range. Other difficulties with performance measures include limited
predictive and operational validity, restricting practical utility in organizational settings (MacCann,
Matthews, Zeidner, & Roberts, 2003).
Davey (2005) suggested that initial theory did not recognize the importance of the differentiation
between the underlying notions of self-report and ability measures. This has caused some
uncertainty and disagreement regarding the findings of numerous previous studies (Davey, 2005).
Perhaps the reason for past indecision on previous studies is because EI has been defined in various
ways in existing literature. Mayer and Salovey (1997) explain EI as the „ability to perceive
accurately, appraise, and express emotion; the ability to access and/or generate feelings when they
facilitate thought; the ability to understand emotion and emotional knowledge; and the ability to
regulate emotions to promote emotional and intellectual growth‟ (Mayer & Salovey, 1997, p. 10).
Other studies adopted a wider view of EI, in doing so extended the cognitive ability model of
Mayer and Salovey (1997). These new studies contain additional factors such as zeal, persistence,
or assertiveness (Bar-On, 1997; Goleman, 1995), and therefore include personality traits as well as
mental abilities.
Davey (2005) suggested the measurement of EI by ability test, will not always yield the same result
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as EI measured with a self-report test – based on the same sample. It is important to understand that
the different models of EI represent different constructs, differentiated by their measurement
methods used to operationalize them, rather than by the content of the sampling. This implies that
in the event of the different measures used on the same sample, one can expect to possibly obtain
different results for the same sample group (Davey, 2005).
Petrides and Furnham (2001) further proposed the classification of trait and ability EI. According to
Petrides, Pita, & Kokkinaki (2007) trait EI can include emotion-related dispositions and self-
perceptions. Trait EI is based on self-report measures and evaluates typical styles of behavior,
whereas ability test uses ability measures (e.g. the Mayer–Salovey–Caruso Emotional Intelligence
Test, MSCEIT), and refers to maximum performance in processing emotional information (Mayer
and Salovey, 1997).
Trait and ability EI methods have both received critical reviews. However, representatives of both
the trait and ability EI approaches agree that significant improvement of both concepts has been
achieved in recent years (Petrides et al., 2007). To date, there has been no published study
providing a comprehensive analysis of the validity of an EI measure that is ideal when measuring
sales people‟s performance (Petrides & Furnham, 2001).
Further criticism of consensus-based assessment methods are offered by Roberts, Gates &
Matthews (2001). They argue ability-based tests measure conformity, not ability. One criticism of
the works of Mayer and Salovey, which suggests that EI measured by the MSCEIT, may only be
measuring conformity. This argument is rooted in the MSCEIT's use of consensus-based
assessment, and in the fact that scores on the MSCEIT are negatively distributed; meaning its
scores differentiates between people with low EI better than people with high EI.
Ability based measures are measuring knowledge (not actual ability). Further criticism has been
offered by Brody (2004), who claimed that unlike tests of cognitive ability, the MSCEIT tests
knowledge of emotions, but not necessarily the ability to perform tasks that are related to the
knowledge that is assessed. Brody‟s main argument is that even though someone knows how he
should behave in an emotionally loaded position, it doesn‟t necessarily follow that they could
actually carry out the reported behavior.
One major criticism of self-report assessments is sometimes informally referred to as „faking good
results‟, or more formally termed „socially desirable responding‟. In these cases test-takers
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characterize themselves with an excessive positive bias (Paulhus & Delroy, 1991). This favoritism
has long been known to contaminate some responses on personality inventories (Holden, 2007).
The main concern for this study with the ability EI test relates to ease of access of the test, the cost
of the test, and possible issues that may occur when scoring the test. Measurement of the test is an
issue, due to the subjective nature of emotional experiences that weaken the ability to create test
questions along cognitive ability lines (Davey, 2005). The scoring procedure raises concern because
it has not proven to be successful in operationalizing cognate theories, like social intelligence
(Davey, 2005). For reasons mentioned above, a self-report measure has been chosen for this study.
2.4 Conclusion
Much is written about the features of top performing salespeople, and the variables determining
sales performance. This research aims to measure the impact of EI on salespeople within the CPFS
industry, and gauge whether EI levels impacts their sales performance. By doing so, this study will
add to the limited academic understanding of the concept of EI‟s impact on sales performance.
The above literature review puts forward a strong case for why EI may positively impact a
salespersons performance. This research may be of benefit to all CPFS firms selling products or
services in what is an increasingly competitive business world. There is the possibility this research
could have broader beneficial application for various other business sectors.
For research purposes, this study will add to the lack of testing of EI in the CPFS sector and serve
as a yardstick for future research to consider the use of a self-report questionnaire, in particular the
Trait Emotional Intelligence Questionnaire (TEIQue-SF), in the CPFS firms.
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3 RESEARCH METHODOLOGY
3.1 Research Approach and Strategy
A deductive approach is the main research method in this study. In deductive research, the
researcher takes what is accepted about a specific idea and of the theoretical considerations related
to that idea and deduces a hypothesis (Bryman & Bell, 2007). This research is conducted with
reference to hypotheses and ideas inferred from existing theory that is relatively new and somewhat
untested in this studies context. This research used various categories (e.g. Top Performer or
Bottom Performer) and measures such as mean and standard deviation to arrive at, and either prove
or disprove the hypothesis (Bryman & Bell, 2007).
The intent of this research is to contribute towards establishing, confirming, or validating
relationships and to develop generalizations that contribute to theory (Leedy & Ormond, 2010).
A quantitative approach is the measurement method used, as a questionnaire is utilized to collect
statistical data. (Bryman & Bell, 2007)
In terms of epistemological & ontological orientations, this study advocates the relevance of the
methods of natural sciences to examining social reality and beyond. At the same time, elements of a
deductive approach and an inductive strategy are utilized. For these reasons, a positivism strategy
is adopted for this study under epistemological orientation.
This study presumes that social phenomena and categories are not only produced through social
interaction and they are in a constant state of revision. Therefore, this study assumes a
constructivism position (Bryman & Bell, 2007).
This study considers the following hypothesis:
H0: There is no difference between the mean EI scores of Top and Bottom performing
salespeople at CPFS firms.
H1: There is a difference between the mean EI scores of Top and Bottom performing salespeople
at CPFS firms.
The main assumptions of this research are as follows:
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There is a correlation between EI and salespeople performance (Rozell, Pettijohn, & Parker,
2006)
The identified Top sales performers will score higher EI scores than identified Bottom sales
performers. (Rozell et al., 2006)
The Top and Bottom sales groups provided by sales managers for this study will accurately
reflect Top & Bottom sales performers.
An inductive approach is adopted for the study of this main hypothesis. There is currently no
research on EI & Sales performance in the CPFS sector that this writer could locate. The opinion
for this inductive study is based on the deductive theory and limited research that exists related to
the link between EI and the performance of salespeople. The literature linking the emotional
intelligence to sales performance is severely lacking. Rozell et al‟s (2006) study is one of the first
on EI & sales performance studies suggeted replications should be performed to clarify whether the
scales used in their study are valid and dependable measures of EI (Rozell et al., 2006). Thus, this
study would assist to validate Rozell et al‟s (2006) study, and build on the dependability of their
measures.
There is also reason to believe that higher emotionally intelligent salespeople will be more
successful at their jobs if they possess higher abilities in the personal and social dimensions of EI
(Meyer & Zizzi, 2007). Therefore, the hypothesis is drawn on the above-mentioned literature and
the assumption that higher EI scorers will in general be better sales performers.
3.2 Research Design, Data collection methods and Research
instrument
3.2.1 Research design
After the literature review and establishment of this study‟s hypothesis, various researchable CPFS
firms‟ sales managers were approached to participate in this study. Willing respondents were
engaged with via email/telephone/in-person. This was followed by a request for a list of Top
Performing sales staff and Bottom Performing sales staff. Next, sales staff were communicated
with via email, and the collection of data through self-completion surveys took place. Next, the
researcher performed quantitative analysis on the data. Lastly, certain conclusions were arrived at.
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Sampling of survey participants was non-probable, and chosen from all race groups. Survey
participants are from two distinct groups, namely the „Top‟ salespeople (defined as the top
performing 20% of their respective sales team) and the „Bottom‟ salespeople (defined as the bottom
performing 20% of their sales team). Sales Managers from various CPFS firms were requested to
confidentially provide names and contact details for salespeople in these two groups. The
identified Top and Bottom salespeople were then contacted, without it being made known to them
whether they were part of a Top or Bottom sales performance group and requested to complete a
TEIQue-SF EI survey. The TEIQue-SF surveys purpose was to score salespeople‟s EIs.
All salespeople were from reputable CPFS firms. A reputable firm in this study entails being listed
on the JSE, with a 10-year track record. One exception was made in the case of Debt Busters (Pty)
Ltd that is a privately held SAFS firm headquartered in Cape Town.
All salespeople surveyed were required to have a minimum of five years‟ experience selling
financial products, in order to participate in this study. There was no maximum amount of financial
services sales experience excluding a potential sample. Samples were selected from salespeople
selling a range of financial products.
3.2.2 Data Collection Methods
CPFS sales managers confidentially identified Top and Bottom performing salespeople. These
sales people were then e-mailed and requested to complete and return e-mail a TEIQue-SF EI
survey and certain demographic details. (See Appendix1).
This study required:
Contact information of relevant salespeople at the various SAFS companies involved.
Salespeople broken into „Top 20%‟ & „Bottom 20%‟ sales performance groups.
All surveyed salespeople‟s EI scores.
Surveyed salespeople‟s personal details including Name, Age, Gender and Ethnicity.
3.2.3 Research Instruments
It is important to note that amongst a large variety of EI test options; this study uses the TEIQue-SF
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test to measure the EI of all surveyed salespeople (See Appendix 1). Reasons why this test is used
in this study are detailed above in section 2.3 of this paper. These tests are available free of charge
for research purposes and can be downloaded from the London Psychometric Laboratory (LPL)
website - www.psychometriclab.com.
It was decided to use the TEIQue-SF test comprising 30 questions, designed to measure a global
trait EI score. Test completion time was approximately 7 minutes (www.psychometriclab.com,
2010).
26 of 30 identified participants completed the TEIQue-SF test for trait emotional intelligence. The
full test consists of 30 items that is rated on a 7-point Likert scale ranging from 1 (Strongly
Disagree) to 7 (Strongly Agree). Higher scores on the TEIQue-SF indicate higher levels of trait
global emotional intelligence (www.psychometriclab.com, 2010).
There are a number of different TEIQue tests available. After explaining the nature of this study
and consultations with the test administrators at London Psychometric Laboratory, the researcher
decided a TEIQue-SF test was the most appropriate for this study. The selection of this test was
influenced by initial feedback from various sales managers at CPFS firms. Sales managers
indicated a higher response rate would be obtained for the shorter 7-minute test, than the longer
TEIQue v. 1.50 of 153-question test, which takes approximately 30 minutes to complete.
The writer and the staff at London Psychometric Laboratory felt a higher response rate due to a
shorter test being utilized would benefit this study, because a shorter test promoted a higher
response rate amongst requested survey participants. This is assumed to have reduced this studies
sampling errors. This is evidenced by the fact that of the 30 participants willing sales managers
identified as Top 20% or Bottom 20% sales performers, 26 of these 30 completed surveys. This
represents a high response rate of 86.66%. This writer and the staff at London Psychometric
Laboratory assume the benefits of this high response rate, and resultant reduction in sampling errors
outweighed any systematic errors due to a shorter test being used.
The theory of trait emotional intelligence (trait emotional self-efficacy) appears after the distinction
between two EI constructs names „ability EI‟ and „trait EI‟ (Petrid& Furnham, 2000). Petrides &
Furnham (2000) proposed a conceptual distinction between the two types of EI, based on the
assessment method used to measure them.
Trait EI concerns a group of emotion related and self-perceptions and dispositions. This construct
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pertains mainly to the construct of personality, and should thus be measured via self-assessment.
Ability EI concerns the actual ability to perceive, process and utilize affect-laden information. This
construct pertains mainly to cognitive ability, and should be measured via performance tests.
(Osofsky, 1991)
The trait emotional intelligence (trait EI) model successfully integrates and extends EI related ideas
in a general framework that incorporates 15 specific facets.
Adaptability Assertiveness
Emotion appraisal (self and others)
Emotion control
Emotion expression
Emotion management (others)
Low impulsiveness Relationships
Self-esteem
Self-motivation Social awareness
Stress management
Trait empathy Trait happiness
Trait optimism
The TEIQue v1.50 test assesses all of the above facets through 15 subscales. In addition, it provides
scores on four factors of broader relevance („well-being,‟ „self-control,‟ „emotionality,‟ and
„sociability‟). Information about each of the scales and factors is available at
www.psychometriclab.com. It is important to remember that scores on the trait EI facets do not
reflect cognitive abilities (e.g., IQ), but rather self-perceived abilities and behavioral dispositions
(Laboratory, 2010)
The psychometric development of this instrument is described in Petrides (2001), and a full
technical manual is currently in distribution.
In terms of sample demographics data collection, the TEIQue test contains a section at the end to
collect data regarding demographics of survey participants. This section includes information such
as gender, date of birth, marital status, income bracket, religion, and race. All of this information is
standard procedure for the London Psychometric Laboratory to obtain demographic data about their
samples.
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In this study, only certain demographic data was requested. Reduced demographic data was
requested, as sales managers initial advice was that the survey would have a higher and more
accurate response rate if certain additional questions were omitted (e.g. Annual Income Level,
What Religion are you? How religious are you?). Asking these additional demographic questions
would reduce the response rate in the sales managers in this writer‟s opinion, and thus possibly
increase the probability of sampling errors. Please refer to Appendix 1 for a sample of this studies
demographic questionnaire. For a full copy of the TEIQue v1.50 test and demographic questions
please see Appendix 3.
3.3 Sampling
Firstly, various CPFS sales managers were approached via in-person meeting/telephone
communication/email and requested to participate in this study. Sales managers agreeing to
participate were asked for contact details of „Top 20%‟ and „Bottom 20%‟ sales performers within
their particular CPFS firm/team. Most sales teams identified were groups of 10-20 in sales people
size. Thus, generally only the Top 2 and Bottom 2 salespeople within each team were sampled.
The „Middle‟ sales performers within the various teams were not requested to participate in this
survey.
Many CPFS firms approached declined to be involved for a number of reasons. By far the most
frequent reason for non-participation related to confidentiality policy issues within certain
organizations. These organizations had policies mandating that staff information not be disclosed
to anyone outside of their firm. The second most frequent reason for non-participation was time
constraint pressures. These firms could not justify the time to be spent compiling Top and Bottom
performers sales performers lists, and having their sale staff fill out questionnaires being worth the
potential upside of added insight on EI and sales performance.
In total, 8 different sales teams across these 3 CPFS firms agreed to participate in this study. The
size of each of these teams was an average of 12 sales people. The smallest sales team was 6 sales
people (StanLib Kimberly) and the largest team was Debt Busters (30 sales people). With the
exception of the Kimberly sales people from StanLib, all other the sales teams surveyed were based
in the Western Cape.
Firms that participated in this study were:
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StanLib (Pty) Ltd – 6 separate regional teams participated in this study. These were Cape
Town, Cape Peninsula, New Century, Two Oceans, Paarl and Kimberly. Established in 2002
through the merger of Liberty and Standard Bank's asset management, wealth management and unit
trust interests, with R330 billion assets under management, StanLib is a leading South African Unit
Trust Company (www.stanlib.com, 2010).
Prudential Portfolio Management (Pty) Ltd - The Cape Town regional team partook in this
study. In 1994 and 1996 Prudential established investment management offices in Cape Town,
South Africa and Windhoek, Namibia respectively. The assets that Prudential manage includes
institutional investments and individual investments from South African clients as well as
investment into the region from global investors (www.prudentail.co.za, 2010).
Debt Busters (Pty) Ltd – Cape Town regional team partook in this study. Debt Busters offer
debt management plans and formal debt review processes (www.debtbusters.co.za, 2010).
Figure 2 - Survey Participants
Secondly, after „Top‟ and „Bottom‟ sales groups contact information were obtained, the TEIQue-SF
EI self-assessment questionnaire compiled by London Psychometric Laboratory was emailed to all
relevant salespeople samples.
Mayer, Salovey & Caruso (2000) suggested EI increases with age. The study found there to be a
relationship between age and EI, but only slight. See Fig 2 below.
All participants selected were between the ages of 25-65 years old. In another study by Six Seconds
Inc., an Emotional Intelligence organization in the USA sampling 405 American people between 22
StanLib n=17
Debt Busters n=4
Prudentail n=4
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and 70 years old were studied.
Figure 3 - Six Seconds Org. study of EI and Age
Source: Six Seconds Inc.
Figure 4 - Age-EI score Relationship in this study
As can be seen from Fig 4 above, the EI-Age trend line in this study is slightly negative in this
study, compared to the Six Seconds Inc. study that is slightly positive. This is not deemed
significant to the outcomes of this study, because in both cases the trend lines are weak.
0
50
100
150
200
250
Age
EI Score
Linear (EI Score)
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3.4 Research Validity and Reliability
Validity of data refers to the question of whether or not formulated indicator to gauge a theory
really measures that concept. Reliability of data refers to the consistency of measure of a theory,
and involves three prominent factors. These three factors are stability, internal reliability and inter-
observer consistency (Bryman & Bell, 2007).
A potential validity concern with this study is the Self-report vs. Performance based measurement
issue. The limitation of self-report tests is discussed in this studies literature review above (See
2.3). Furthermore, Mayer, Salovey & Caruso (2004) suggest self-report tests are a poor EI measure
due to their objective bias, and that results indicate a “perceived” EI. The real EI self-report
measures tend to connect closely to personality rather than EI (Lane, et al., 2009). Wells &
Sweeney (1986) conducted a study testing bias in Self-Assessment testing. Their findings showed
that people with lower self-esteem, in contrast to those with higher self-esteem tend to overrate
their ability according to standardized norms in order to increase self-esteem (Wells & Sweeney,
1986).
Given a self-assessed EI test measure is used, another concern could be the validity and reliability
of the particular TEIQue test chosen in measuring EI. Several articles are written substantiating the
validity of the TEIQue EI tests validity. An example of such support for TEIQue comes from
Memar et al‟s (2005) study to determine validity and reliability of TEIQue‟s Trait Emotional
Intelligence questionnaire (Petrides & Furnham, 2001). The findings of this 2005 study were high
correlations among different scales confirming the convergent validity of the scales. The internal
consistency and test-retest methods indicated scale reliability at 0.76 and 0.71. More support
comes from Gardner & Qualter (2010) concluding for researchers interested in using trait EI, their
study suggests the TEIQue is a superior measure over MEIA and SEIS (both based on the Salovey
& Mayer [1990] model). See Appendix 4 – Adjusted square correlation coefficients table for
predicting EI (Gardner & Qualter, 2010).
Given that a TEIQue test is used, another validity concern could be the fact the shorter version
TEIQue-SF version containing 30 questions survey is used, as opposed to the full version TEIQue v
1.50 containing 153 questions. This concern is refuted by Cooper & Petrides (2010) who examine
the psychometric properties of the Trait Emotional Intelligence Questionnaire–Short Form
(TEIQue–SF; Petrides, 2009) using item response theory. Cooper & Petrides (2010) concluded, the
findings of the two studies suggest clearly that the TEIQue–SF can be recommended for the rapid
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assessment of individual differences in trait EI (Cooper & Petrides, 2010).
The TEIQUE-SF test incorporates a part reverse scoring method primarily to reduce response rate
bias (Idaszak & Drasgow, 1987). See Appendix 2 for a copy of TEIQue-SF reverse scoring sheet,
compiled by LPL. In recent years, however, reverse scoring use has come under close scrutiny by a
number of researchers. Reverse scoring of items has been shown to reduce the validity of
questionnaire responses (Schriesheim & Hill, 1981) and may introduce systematic error to a scale
(Jackson, Wall, Martin, & Davids, 1993).
The reliability of the TEIQue measuring tool, in light of Cross Cultural issues is something that
should be considered. The TEIQue was developed in the United Kingdom. Investigation is needed
to confirm this tool is dependable to use in a South African context, or whether there are cross-
cultural issues that would deem such a test undependable in South Africa (Bailie & Ekermans,
2006). Mayor et al (2004) backed up this concern stating there is a good correlation between culture
and EI.
3.5 Data Analysis methods
Data analysis was out carried in 4-step process:
1. A database was set up in Microsoft Excel capturing all respondents’ data of TEIQue-SF EI
scores and demographic data. (See Appendix 6)
2. Irrelevant responses (i.e. 4 Middle performers responded) and outliers (i.e. 1 was found) were
removed from the dataset.
3. Sample EI scores and demographic data were analyzed in the form of descriptive statistics. All
responding Salesperson EI means and standard deviations were calculated. Top and Bottom
Salesperson Global Trait EI scores were separated into two groups for further analysis. Averaged
mean and standard deviation of EI scores for Top vs. Bottom performing salespersons groups were
calculated and compared (See Table 4). Sales Performance was based on Sales Managers opinions
of their relevant sales staff. It was agreed by all sales managers that their assessment of Top and
Bottom performing salespersons is based closely on net profit generated for the firm, which is
usually related to income generated by the salesperson.
4. Lastly the difference between Top and Bottom Performing sales groups EI Means and EI
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Standard Deviations was analyzed. Firstly, a t-test for mean differences was performed, to test
whether there was a statistically significant difference between Top and Bottom Performing sales
groups EI Means. Secondly, a Levene‟s Test was performed to test whether there was a statistically
significant difference between Top and Bottom Performing sales groups EI Standard Deviations.
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RESEARCH FINDINGS, ANALYSIS AND DISCUSSION
3.6 Characteristics of the sample
Below in Table 1 is a representation of the demographic characteristics of the sample.
Table 1 - Demographics
Certain additional demographic characteristics were gathered from the 25 sales people surveyed in
this study. Initially 8 different sales managers at CPFS firms agreed to confidentially provide
names of their sales performers who performed exclusively in the Top & Bottom 20% within their
relevant sales teams. Sales performers falling in the „Middle‟ 60% of sales teams were ignored. 30
sales people (15 Top & 15 Bottom) were then emailed, of which 26 responses to this survey were
received. One survey response was disregarded, as it was considered an outlier.
A majority of the sample is made up of male respondents (64%), which is a commonly encountered
gender profile within the SAFS sales industry.
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A majority of the sample is made up of white respondents (64%), which is a commonly
encountered racial profile within the CPFS sales industry. Future studies might well consider
extending the race sample size, as well as studying for variable differences within particular race
groups.
The Mean Age is 35 years old, which is a commonly encountered age profile within the CPFS sales
industry. The youngest and oldest survey participants were 25 and 50 years old respectively.
Table 2 - EI results
As indicated in Table 2 above, total sample EI score for all respondents averaged 5.57 out of a
possible 7 on the Likert scale for the TEIQue-SF test. Standard deviation, Median, Maximum and
Minimum scores all appear reasonable. Reasonableness of these results will be discussed more in
Table 5 below.
Table 3 - Age characteristics
The Age mean and standard deviation of the Top 20% and Bottom 20% performing groups is very
similar. This would suggest the age make-up of either of these two groups, is not likely a factor
that influenced sales performance or the EI scores for comparison purposes. Future studies might
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well consider focussing on a larger data set of more older and younger sales people or less and
more experienced sales people, and gauging if this has a significant impact on sales performance.
Figure 5 - EI scores
Individual EI Scores of Top & Bottom performers
The results in Table 4 below indicate the Top 20% performing sales people have slightly higher
mean EI score than their Bottom 20% performing sales team counterparts. How strongly it can be
assumed this slightly higher average mean EI in Top performing salespeople influences sales
performance over Bottom performers will be discussed more the next section of this study.
Table 4 - EI results by category
0
50
100
150
200
TBBTBBTTBBTTBTTBTBTBTBBTT
EI Score
EI Score
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Table 5 below compares the EI results obtained from various TEIQue test studies with this study.
Table 5 – Comparative TEIQue studies
A Rodeiro, Bell and Emery (2009) study indicates a Population Norm mean (4.53) lower than the
comparative studies means represented in this study (See Table 5). This is plausible, because the
comparative means are all from sample groups (i.e. Financial Salespeople, Business Executives &
Sports Coaches) expected to have above average EI scores when compared to the average
population. The TEIQue EI data on South African Executives and Sports Coaches surveyed were
from a Lifson (2009) study.
Interestingly, the standard deviations of EI scores in this study are similar to that of the population
norm, Business Executives and Sports Coaches studies. This in some ways supports the validity of
data produced in this study.
3.7 Research Analysis and Discussion
As outlined in the Data Analysis Section in 3.5, the difference between Top and Bottom Performing
sales groups EI Means and Standard Deviations was analyzed. Firstly, a t-test to measure mean
differences was performed, to test whether there was a statistically significant difference between
Top and Bottom Performing sales groups EI Means. This test would determine if the Null
hypothesis is proven statistically significant or not in this study.
Secondly, a Levene‟s Test was performed to measure if there was a statistically significant
difference between Top and Bottom Performing sales groups EI Standard Deviations. If it is found
that there is a statistically significant difference in standard deviations between the two groups, this
may influence the validity of the t-test.
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The T-test examined the following hypothesis:
H0 : There is no difference in the EI means of Top vs. Bottom Performing Sales Groups at CPFS
firms.
H1 : There is a difference in the EI means of Top vs. Bottom Performing Sales Groups at CPFS
firms.
This hypothesis test was conducted at the 5% significance level.
A t statistic was calculated:
T = 0.53
At 5% level of significance with 48 degree of freedom the critical value is 2.048.
Thus, since 0.53<2.048, we accepted the null hypothesis and conclude that there is no significant
difference in means of Top vs. Bottom Performing Sales Groups at CPFS firms.
Levene‟s Test examined if there is a statistically significant difference between Top and Bottom
Performing sales groups EI Standard Deviations:
W is the result of the test,
k is the number of different groups to which the samples belong,
N is the total number of samples,
Ni is the number of samples in the ith group,
Yij is the value of the jth sample from the ith group,
is the mean of all Zij,
is the mean of the Zij for group i.
The significance of W is tested against F(α,k − 1,N − k) where F is a quantile of the F test
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distribution, with k − 1 and N − k its degrees of freedom, and α is the chosen level of
significance (usually 0.05 or 0.01).
A separate test was setup to gauge the standard deviations in EI means of Top and Bottom
Performing Sales Groups at CPFS firms.
A Levene‟s test Hypothesis was formed, for the purpose of main hypothesis validation:
H0: There is no difference in variances of standard deviations in EI means of Top and Bottom
Performing Sales Groups at CPFS firms.
H1: There is a difference in variances of standard deviations in EI means of Top and Bottom
Performing Sales Groups at CPFS firms.
The test statistic W=9.62
This research used the F-test distribution tables at 5% level of significance and v1 =1 and v2 = 23.
The critical value is 7.88 and since W is above than 7.88 H0 is accepted and it is concluded that
there is enough evidence that there is no significant differences in variances of standard deviations
in EI means of Top and Bottom Performing Sales Groups at CPFS firms. The fact that standard
deviations of the two groups EI‟s are not different serves to further validate the original hypothesis
finding that the Null Hypothesis is valid. Had this Levene‟s test indicated there is a significant
difference in the two group‟s standard deviations, this would have made the main hypothesis
weaker.
3.8 Research Limitations
A main limitation of this study is the sample size. Due to a limited sample size of twenty-five sales
people, it needs to be considered there could be a reduction of correctness of the sample that
consequently results in increased sampling error (Bryman & Bell, 2007). This is a concern as the
smaller sample may have a direct impact on the reliability of the study results.
A further potential limitation is the choice of the TEIQue EI measuring instrument used in this
study. There is much debate around which EI measuring instrument is „best‟, and new
developments surrounding EI testing measures occur regularly. In addition, TEIQue was developed
in the United Kingdom, not South Africa. As a result there is a need to test around the possible
cross-cultural differences with regard to the test and construct in order to assure this test is reliable
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in a South African context. Another limitation regarding the use of the TEIQue test is the limited
previous studies available of TEIQue reported EI scores linked to sales performance.
The TEIQue assessment is a self-report test. It should be considered there is support for the
argument that self-report measures provide a measure of the candidate‟s self-concept rather than
their actual ability or traits (Bailie & Ekermans, 2006) and are therefore associated with self-report
biases (Stein, Papadogiannis, Yip & Sitarenios, 2009).
Another criticism of self-report assessments is „socially desirable responding‟. In these cases test-
takers characterize themselves with an excessive positive bias (Paulhus & Delroy, 1991). This
favoritism has long been known to contaminate some responses on personality inventories (Holden,
2007).
Another limitation of this study is the lack of significant difference between the two groups. It is
possible to assume that the two groups (Top 20% and Bottom 20% sales performers) are not
significantly different enough to draw strong conclusions. There is sample data to suggest that both
sales people groups have above average EI levels compared to population norms (See Table 5
above). It is plausible that Top performing sales people attained their superior performance due to
reasons other than their EI score exclusively. A possible suggestion to better analyze this question
would be for future studies to survey CPFS sales people who „dropped‟ out of the field. This data
might produce more distinctly different EI results, and thereby add to the academic research in this
area.
Finally, it is possible that unforeseen factors in addition to EI impacting on the success level of
salespeople have not been uncovered by this study. These additional features that possibly impact
on sales performance need to be considered in addition to EI levels. For example, a minimum of 5
years financial sales experience was set in this study. However the number of years of financial
sales experience data was not captured in this study. It is quite plausible that a salespersons
performance would benefit from many years of financial sales experience and a large network of
customers, even if that particular salesperson did not have a high EI score. Similarly, the levels of
post high school education might have a similar positive impact on sales performance, independent
of EI levels. These are areas for future research to consider.
From a resource perspective, no budget was applied for this study. Given that this is an MBA
thesis where this researcher also has full time job, this somewhat limits the amount of data
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gatherable and requires the use of a free test to collect data.
4 RESEARCH CONCLUSIONS
The goal of this study is to investigate the possible link between higher EI scores and higher
performing salespersons at CPFS firms. Much research has been conducted on features of top
performing salespeople, who achieve superior sales performance in relation to their peers.
Variables‟ determining sales performance has interested marketing researchers for a long time.
Some of these variables previously studied making up EI and having a significant influence on
sales performance are Empathy, Self-Motivation, Self-Regulation. Since these variables
influencing sales performance are central to EI, it is reasonable to suppose a higher EI score is a
factor that will result in improved sales performance.
The results of this study indicate from a casual observation perspective, the average EI level of Top
performing salespeople at CPFS firms was slightly higher (2.9%) than lower performing sales peers
when measured using TEIQue. However, more importantly this study also found from an academic
statistical perspective after using a t-test at 5% significance level, that EI levels of salespeople were
not significantly related to superior sales performance. This said, previous related academic
research has indicated to the contrary, that EI does significantly impact sales performance. As
noted in the research limitations above, a main concern with this study was the limited data set. In
the researcher‟s opinion, this may have impacted the results of this study.
It is theorized EI affects several workplace circumstances including sales performance. However,
being a relatively new field, EI is a variable without a great body of academic research conducted
of its impact on sales performance. This type of academic research is also especially lacking in
emerging market settings, with a majority of existing studies limited to developed markets. EI-Sales
performance research such as this study is also particularly lacking with regards to research using
the Trait TEIQue EI measurement method. Thus, this research contributes to all these bodies of
limited of existing academic literature.
This study has also produced a list of potentially useful future research suggestions (See Section 5 –
Future Research Directions). These suggestions may well assist future studies in the relatively new
domain of EI-Sales performance related field.
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5 FUTURE RESEARCH DIRECTIONS
Based on the limitations listed above in section 4.3, various recommendations can be made for
future research.
Firstly, replications of a larger data sample should be performed to determine whether the scales
used in this research are valid and reliable. Simply put, more CPFS firms should be surveyed. In
addition, including a new category of „Failed Sales Persons‟ should be considered, to gauge how
their EI and additional variables compare to surveyed Top performing salespeople. Such future
research on Failed Sales Persons might reflect a greater difference in EI values when compared
with Top Sales people. This research might also assist us better understand why salespeople fail.
Future research might also consider „re-testing‟ previously surveyed participants (e.g. 12 months
after initial testing), to gauge respondent feedback variance over time.
Additionally, future research should deliberate what additional questions the demographic
questionnaire following the TEIQue survey should contain. The appropriate additional questions
might reveal unforeseen factors that impact on the success level of salespeople. These additional
features that possibly impact on sales performance will need to be considered in addition to EI
levels. For example, a minimum of 5 years financial sales experience was set in this study. Future
studies might include the following questions to access variables that possibly impact sales level of
performance in addition to EI. „How many years of financial sales experience do you have?‟; „How
many years of post high school education do you have?‟ These additional variables data can be
studied, and judged if they impact sales performance.
To reduce self-report bias in future studies, EI results might also be assessed by other people (e.g.
fellow sales staff/sales manager/customers). This would likely lead to a more valid data set.
In future studies, EI could be compared to other characteristics that have in the past been analyzed
in sales research, E.g. Empathy, self/other orientation etc. To study such characteristics, future
research might benefit from replicating this study with the longer TEIQue v. 1.50 (153 items, 15
facets, 4 factors, global trait EI score) EI test. Although it takes survey participants longer to
complete (approximately 30 minutes) such a test will also reveal 15 EI subscales (e.g. Self Esteem,
Self Expression, Happiness, Empathy etc.).
Finally, it would be interesting to study sales fields other than the financial services sector. Cote
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and Miners (2006) suggest that the relationship between EI and job performance becomes more
positive as cognitive intelligence decreases. This idea was originally proposed in the context of
academic performance (Petrides, Frederickson, & Furnham, 2004). The results of the former study
supports the model that employees with lower IQ‟s obtain higher task performance, the higher their
EI. The competence levels (and likely IQ levels) of current survey participants in the CPFS industry
is generally higher than average. Therefore, this may have led to a lowering of the impact of EI on
sales performance, than if sales people in a different field with lower IQ‟s were studied.
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APPENDICES
Appendix 1 – TEIQue-SF EI test & Amended Demographics questionnaire:
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Demographics Questionnaire:
Please complete the following, by circling/completing:
1. What is your sex?
a. Male
b. Female
2. What is your birth year?
a. 19……
3. How would you describe yourself ethnically?
a. Black
b. Colored
c. White
d. Other
4. My name is: …………. ……………
Trait Emotional Intelligence Questionnaire – Short Form (TEIQue-SF). This is a 30-item
questionnaire designed to measure global trait emotional intelligence (trait EI). It is based on the
long form of the TEIQue (Petrides, 2001).
For more information about the trait emotional intelligence research program go to:
www.psychometriclab.com
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Appendix 2 - TEIQue-SF scoring template
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Appendix 3 – TEIQue-V 1.50 EI test & Full Demographics questionnaire:
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Appendix 4 – Adjusted square correlation coefficients for predicting EI
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Appendix 5 – TEIQue v1.50 results grid
Appendix 6 – Survey raw data
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Appendix 7 – Suggestions to improve EI
The writer of this study does not possess any formal training in psychology.
Below is a list of references readers may consider if they wish to increase their own or their staff’s
EI scores.
EI websites
www.eiconsortium.org
www.eqi.org
www.unh.edu/emotional_intelligence
Basics EI books for individuals
Emotional Discipline (2003) by Charles C. Manz
Handbook of emotional intelligence(2000) by Boyatzis, Goleman & Rhee.
Basic EI books for the workplace
Working with emotional intelligence (1998) by Goleman.
Executive EQ: Emotional Intelligence in Leadership and Organizations (1997) by Cooper & Sawaf.
Emotional Intelligence at Work (1998) by Hendrie Weisinger
Academic papers on EI improvement
Nelis, D., Quoidbach, J., Mikolajczak, M., & Hansenne, M. (2009). Increasing emotional
intelligence: (How) is it possible? Personality and Individual Differences, 47, 36-41.
Sojka, J., & Deeter-Schmelz, D. (2002). Enhancing the Emotional Intelligence of Salespeople. Min-
American Jouranal of Business , 43-48.
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Source: (Salovey & Mayer, 1990)