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The Effect of Product Knowledge on
Salesperson Performance with the
moderating role of Attitude
Hotlan Siagian1
*
, Garry Putera1, and Juris Burlakovs2
1Faculty of Business and Economics, Petra Christian University, Jl. Siwalankerto 121–131,
Surabaya, 60236, Indonesia.
2Estonian University of Life Sciences, 51014 Tartu, Estonia
Abstract. This Study investigate The Effect of Product Knowledge on
salesperson Performance with the moderating Role of Attitude. Amout of
65 from 72 questionnaires are considered valid for further analysis. Data
analysis used Partial Least Square (PLS) with the smartPLS software
version 3.0. Data analysis was performed to assess the measurement model
and the inner model. The result revealed that one hypothesis was
supported and the other one was not supported. Product knowledge
influence the salesperson performance while attitude did not moderate the
influence of product knowledge on the salesperson performance. This
result of study enhances the insight of the sales manager that attitude did
not moderate the salesperson performance. Manager needs to review the
training of the salesperson in order the attitude contribute to the
salesperson performance.
Keywords: Customer satisfaction, employee knowledge, sales
achievement.
1 Introduction
In today's era of global economic, the company should perform their best efforts in
providing the best service to its consumers. The competition is an inseparable part of life of
a company's activities. A company should have an appropriate competitive strategy to
outperform the competitors. Among the resources, qualified human resources become one
the most important of the resources required by a company to win the competition. The
empowerment of quality human resources enables the company to achieve the company
targets. Having enough quality human resources enable all function of the organization to
synergy in the pursue of the company best performance. Qualified salespersons allow the
company to achieve the target. Qualified salesperson resources, generate high sales volume,
and achieve the company's targets. The majority of companies fail and cannot survive due
to poor employee performance, which results in cross-functional synergies not going well.
This situation makes the company unable to compete, and adapt to the uncertain and
dynamic environment. The performance of human resources is very essential in achieving
company goals. A research by [1] suggest that tenacious salesperson is described as the
person who is committed to meeting the needs of customers. Besides, the success of a
*
Corresponding author: hotlan.siagian@petra.ac.id
© The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative Commons
Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0/).
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company can be seen from the quality of the relationship built between salesperson and
customers as a team. Many sales management experts and salesperson advise that these
conditions will be achieved if the company can maintain the attitude of salesperson to
attract customers. Attitude plays a vital role in improving salesperson performance.
Work attitude is the regularity of one's feelings and thoughts and the tendency to act on
aspects of the environment. Every employee has their way of addressing the problems they
face [2]. However, the company should take part in resolving the situation to create a
conducive atmosphere and work environment so that employees can respond positively,
and salesperson can improve their performance. Knowledge has become a strategic asset
for a company. Companies that invest in knowledge assets and values become more
successful compared to companies that do not invest in knowledge. Product knowledge is
an essential element in strengthening the strategic role of salesforce. Product knowledge is
often a critical factor that determines the interaction between salesperson and customers [3].
The mastery of salesperson over all of the company's product attributes is a definite form of
assessment. For customers, the product knowledge of the salesperson is a reflection of the
quality of the salesperson. The lack of product knowledge possessed by salesperson will
result in difficulties or significant obstacles in the process of adjusting to the sales situation.
Inadequate information obtained by customers from salesperson will cause the customers to
reconsider before purchasing the products offered [1]. Therefore, a salesperson should
understand the attribute and function of the products being offered, starting from the very
basic to the most advanced properties of the product. Salesperson can deliver an added
value to the customers by mastering the products knowledge. Furthermore, the way how the
salesperson communicate the product knowledge, in the end, requires a right attitude in
order the prospective customers get convinced and more confident about the products.
Conversely, if the salesperson does not understand the attributes of the product sold, it will
result in the customer not interested in buying the product offered. In other words, the
attitude of the salesperson can weaken or strengthen influence.
Based on the discussion and background above, this study aim at examines the effect of
product knowledge on salesperson performance with Attitude of the salesperson as a
moderating variable. Thus this research raised two research questions, namely: i) whether
product knowledge affects salesperson performance, ii) whether attitude moderates the
relationship between product knowledge and salesperson performance. This research
contributes to enrich the insight of the manager in the properties industry. This study also
contributes to the on-going research in the business management.
2 Theoretical review
2.1 Product knowledge
Product is a primary element in a marketing program. The products the company sells
determines the marketing strategy and the competitive strategy of the company. Purchasing
a product by the customer is not just to own the product but also to meet the needs and
desires of consumers. According to [4] the definition of a product is any product that can be
offered to the market to satisfy the wants or needs of customers. The product is defined as a
complex trait, both tangible and intangible, including packaging, color, price, company and
retailer prestige. Products are also defined as tangible objects or intangibles that can be
bought by consumers. From the above definition it can be concluded that the product is
everything created by the company so that it can be offered to get attention in satisfying the
wants and needs of consumers [5]. Knowledge is defined as knowledge acquired by
someone in the form of knowledge that can be stored as memory. Knowledge is a collection
of concepts, principles, information obtained through learning or experience. Knowledge is
everything we know. There are two types of knowledge, namely factual knowledge, in the
form of information that we receive as reality and experiential knowledge, namely the
understanding that we obtain comes from a person's experience [6]. The breadth of insight
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or knowledge is one of the requirements so that a person can optimally and productively
work and improve the quality of his life. Product knowledge is conceptually essential to
consumers and is influenced by information gathering from marketers [7]. Product
knowledge means that a person must know in advance whether he understands all the
attributes of the product or service he sells. This includes how the product works, its
application, installation, and price options [8]. Knowledge about the product is indeed
needed for the salesperson. At least, with the knowledge of the product, salesperson has the
ability to answer almost all customer questions about the product, so consumers feel happy
and are interested in buying products or using the services offered.
The diversity and dynamics of customer needs and expectations require a salesperson to
know the diversity of the company's product line, the benefits of the company's products, to
the specialty of the company's products when compared to competitors' products. Product
knowledge makes and shapes the mental attitude to be more ready in selling products.
Product knowledge also makes salesperson carry out marketing activities as a source of
information for consumers and vice versa for salesperson. Thus, product knowledge has
become an essential factor that determines the seller's performance. Through product
knowledge, salesperson can adapt sales force more directly and with high self-confidence
can lead to more valued in the eyes of consumers, so the opportunity to adapt to salesperson
will be higher. There are three indicators to measure product knowledge, namely i),
subjective knowledge refers to how much someone knows about a product or what is also
commonly referred to as self-assessed knowledge, ii) objective knowledge, which refers to
how much the level and type of information contained in a person's memory, iii)
experience-based knowledge refers to how much someone's experience regarding the
product concerned [9]. The more significant experience the salesperson has, the more
effective the work he is undertaking.
2.2 Attitude
Attitude is evaluative statements, both desirable or undesirable, regarding objects, people,
or events [10]. Attitude is an evaluation, feeling and tendency of someone who is relatively
consistent with an object or idea, in other words, attitude is a feeling that arises in a person
towards an object, both before and after people see, feel, and enjoy the object [11]. Attitude
as a tendency based on what is obtained from consistent learning outcomes, which shows
the likes or dislikes of an object [12]. Attitude as a way of placing or carrying oneself, or a
way of feeling, way of thinking, and behavior [13]. Based on some of the definitions above,
it can be concluded that attitude is a complex mental condition that involves beliefs and
feelings, and disposition to act in a certain way. Attitudes reflect how someone does
something, carry oneself, or how to feel someone. The attitude is the mental condition of a
person that is gained from experience, which directs and dynamically influences individual
responses to all objects and related situations [14]. The attitude indicators are flexible and
free-thinking in thinking, freedom of expression, interest in creative activities, belief in
one's ideas, and involvement in tasks [15].
2.3 Salesperson Performance
Provides an understanding that performance or work performance is the level of overall
success of a person during a specific period in carrying out the task compared with various
possibilities, such as work standards, targets, or criteria that have been determined in
advance and agreed upon [16]. The performance means they achievement of a worker, a
process activity of an organization as a whole, where the results of the work must be
demonstrated concretely and measurably [17]. Performance comes from the word job
performance or actual performance, which is generally defined as result of work or actual
achievement by someone. Performance as the results or overall level of success of a person
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during a specific period in carrying out the task, compared with various indicators such as
work standards, targets that have been previously determined and agreed upon [18]. The
performance is basically what employees do or do not do. Performance as a picture of the
level of achievement of the implementation of activities or policies in realizing the goals,
objectives, vision, and mission of the organization as outlined through the strategic
planning of an organization [19].
The performance comes from the word performance, which means work results or work
performance. However, it should be understood that the performance is not just the result of
work or work performance, but also includes how the work process takes place [20]. Based
on the understanding of the performance of some of the opinions of the experts, it can be
concluded that the performance is the overall activities undertaken to improve the
performance of the company or organization, including the performance of each individual
and workgroup within a company produced by the functions or indicators of a work in a
certain amount of time. There are several opinions regarding the factors that affect
employee performance. The factors that influence performance include the ability factor
and motivation factor [21]. Every company must be able to compete and keep abreast of
developments in winning market competition. This situation encourages companies to
implement new strategies in the company's sales management; for this reason a high-
performance sales force is needed [22]. At present, it is not uncommon for companies to
spend enormous resources to implement strategies, especially in the sales force as a
marketing channel in achieving company goals. The success of salesperson is also related
to sales performance. The sales performance is the result of the implementation of various
sales strategies carried out by the company [23].
Salesperson performance is highly dependent on how marketing strategies are
developed because the goal of marketing strategies is how to allocate and coordinate
resources effectively and efficiently [24]. Salesforce performance is an achievement of all
forms of efforts made by salesperson in determining the right choice and strategic direction.
The choice and direction of the right strategy is the key to achieving the expected
performance. Salesperson performance can be defined as work results in quality and
quantity achieved by someone in carrying out their duties following the responsibilities
given to him. Salesperson performance as a form of evaluation and salesperson
contributions to achieve organizational goals [25]. The performance of salesperson is one of
the critical aspects in evaluating overall organizational performance. That is because the
sales force is part of the organization as a whole, which plays an essential role in selling the
company's products or services.
Salesperson performance is conceptually useful for testing performance regarding
attitudes or activities carried out by salesperson, as well as the results that can be distributed
to their businesses [26]. Salesperson performance can be seen from the final results such as
sales volume, market penetration, and achieving sales quotas [27]. Salesperson performance
is an evaluation of the contribution of salesperson in achieving organizational goals in the
form of sales results obtained by accepting salesperson's efforts. In the end, salesperson
performance is defined as the ultimate goal of a sustainable strategy between the company
and salesperson as measured through specific indicators [28]. The performance of business
salesperson based on objective and subjective measurements consisting of sales volume,
growth in number of customers, and sales growth [23].
2.4 Relationship between product knowledge and salesperson performance
The salesperson is the liaison between the company and the consumer since the consumers
will ask about the specifications of a product, and the salesperson should be able to provide
an understanding of the product to consumers. The salesperson need to know what product
will be conveyed, how deep, and what approaches will be used when conveying this
information to consumers [29]. A salesperson needs to know the products explicitly for an
excellent two-way communication with consumers. To produce an excellent performance,
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the company needs a good system. This system is not only the regulations or standards that
exist but also involves the parties directly related to the human resources. Individual
performance is influenced by knowledge, skills, and motivation. Therefore, the company
requires the management treat the knowledge of all employees as company assets. This can
be done by applying knowledge management, where one component in knowledge
management is the mastery of a product knowledge. The leveraging of product knowledge
becomes a solution in solving the problems of the performance of their employees, with the
final result to achieve the goals and vision that they expect. The experience had a positive
effect on sales performance [30]. The main components in the product knowledge help
salesperson achieve their goals and vision. It also relates to the performance of salesperson,
where the salesperson is the primary driver of a company. When the salesperson's
performance is excellent, the organizational performance is also excellent. Therefore,
companies need to know the extent to which product knowledge plays a role in improving
the performance of salesperson. Based on the above argument, the first hypotheses is
proposed as follows:
H1: Product knowledge influences salesperson performance
2.5 The moderating role of attitude on the product knowledge and sales-
person performance relationship
Characteristics of a salesperson are defined as attributes attached to a person that reflect the
quality of a salesperson. The main issue in the characteristics of salesperson lies in
personality, attitudes, perceptions, motivation, and satisfaction in sales performance. A
positive employee attitude will encourage positive performance. Employees who have
positive thoughts about their work, have positive feelings, and act positively will improve
their performance. The attitude has a positive moderation effect on product knowledge and
employee performance [15]. The employee attitudes and knowledge positively have a
strong moderation effect on employee performance. The attitude that exists in a person will
give color or style to the behavior or actions of the person concerned. Attitude determines
how people view the work environment, interact with others, and behave at work. Someone
with a positive work attitude will like his job and solve problems at work happily, while
someone with a negative attitude does not show much enthusiasm and commitment to
solving problems. With the existence of work attitudes and good employee knowledge of
the company, it will encourage employees to work better [31]. Furthermore, when
knowledge of a person's product is sufficient and is equipped with one's awareness to show
a right attitude, one's performance will be better too. Hence, the second hypotheses is as
follow:
H2: Attitude moderates the influence of product knowledge on salesperson performance
3 Research methods
3.1 Population and Sample
This research use quantitative method to analyze the primary data obtained from the
respondents. Data collection used questionnaire designed with five-point Likert scale
starting from 1: strongly disagree up to 5: strongly agree. A quantitative research is an
approach adopted to test the hypotheses of theory by examining the relationships between
concepts. The questionnaires were distributed to the respondents through direct delivery by
the author. The respondents are the salespersons of the property company in Surabaya PT
Intiland Grande. The population are those salesperson working on eight project with the
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total number of 72 salespersons. Based on this number of population, at least 62
respondents are required based on the Slovin formula.
3.2 Operational definition
Product knowledge indicator (X1) in this study namely: (i) Salesperson possess adequate
knowledge about the product specification, (ii) Salesperson is capable of delivering the
information about the product offered in detailed iii) Salesperson own adequate experienced
in selling the product [9]. Whereas attitude (X2) is measured namely: (i) thinking flexible
and free, (ii) freedom of expression, (iii) very interested in creative activities, (iv) belief in
one's ideas, (v) Flexibility of the salesperson help salesperson solve the problem, and vi)
involvement in tasks [15]. The construct of Salesperson performance (Y) using the
indicators of (i) sales volume, (ii) customer growth, (iii) customer satisfaction, (iv) ability
to listen to customers, (v) ability to make sales presentations, (vi) handling customer needs
and desires effectively, (vii) creating mutual respect in every sale activity, (viii) sell to
prospective customers and sales growth [23].
3.3 Data collection
Data collection in this study was carried out through questionnaires, a set of questions to be
answered by respondents. The questionnaire was distributed to the salesperson of eight
project owned by PT Intiland Grande Surabaya, a property company domiciled in
Surabaya. The population are those salespersons working on eight project with the total
number of 72 salespersons. For further validity analysis, this research considered 65
questionnaires from 72 total samples. Then the data analysis uses Partial Least Square
(PLS) with the help of smartPLS software version 3.0. Data analysis was performed to
assess the measurement model and test the research hypotheses. Assessment of the
measurement model is done by looking at the validity and reliability while testing the
hypothesis is done by looking at the t-statistic value of each path coefficient of the inner
model. A measurement model is accepted with the terms convergent validity, and
discriminant validity meet specific values while relativity is fulfilled when the composite
reliability and Cronbach values are negligible. Test the research hypothesis with the t-test
where the hypothesis is accepted if t arithmetic < 1.96 with a significance level of 5 %
4 Analysis and results
Respondents in this study were all salespersons from PT Intiland Grande Surabaya. Table 1
shows the identity of the study respondents, which consisted of gender, age, length of work,
and the project handled. From the data collected, it was obtained that the majority of
respondents, as many as 46 people or 70.8 % were male, and only 19 people or 29.2 %
were women. Based on the length of work of respondents it is known that the majority of
respondents have worked between 1 yr to 5 yr, i.e., as many as 36 respondents or 55.4 %,
then 21 respondents or 32.3 % have worked less than 1 yr, as many as seven people or
10.8 % of respondents have worked between 6 yr to 10 yr, and the rest for respondents who
have worked more than 10 yr amounted to one person or 1.5 %. Table 1 shows that the
majority of respondents handled the Rosebay project with 18 respondents or 27.7 %, 1
7 people or 26.1% respondents handled the Graha Golf project, and as many as eight people
or 12.3 %, handled the project Retail.
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Tabel 1. Project handled bay respondent
Project handled
No.of Salespersons
Percentage
The Rosebay
18
27.7 %
Graha Golf
17
26.1 %
Retail
8
12.3 %
Graha Natura
7
10.8 %
Spazio Tower
5
7.7 %
Spazio
4
6.2 %
Sumatra36
4
6.2 %
Praxis
2
3 %
Total
65
100 %
Assignment of the salespersons on each projects is based on the size of the project being
handled. Whereas the Praxis project has the smallest number of salesperson compared to
other projects, on the basis that the Praxis project is the most recent project being released
by PT Intiland Grande, so it does not require as many salesperson as other project
requirement.
4.1 Descriptive analysis
Descriptive statistics in this study use average statistics (mean), which illustrate the average
value of all respondents statement. The mean class interval aims to find out where the
average rating of respondents for each variable in question with a range of scales [3]. The
following is the respondent's response to the statement contained in the product knowledge
variable. Table 2 above states that, in general, the respondents already have excellent
product knowledge. This is evidenced from the mean number of 3.69 (high). This result
shows that most salespersons assume that they already have product knowledge about the
products they sell. The highest response was to the statement about "I can convey every
information related to the product I offer clearly and in detail" with an average value of
3.78. While the lowest response is in the statement "I already know product specifications
well" with an average value of 3.61.
A salesperson has the primary role in selling each product according to each project
following the targets set by the leader. From the beginning, the salesperson at PT Intiland
Grande has been given an understanding of each product offered according to their
respective projects. The understanding was conveyed through a briefing conducted every
day in the morning by each head of each project before conducting sales activities. The
briefing will review the salesperson's knowledge of the product to be offered, and discuss
the obstacles being faced to what extent the target has been achieved. In addition to the
briefing, there is also a product knowledge class that must be followed by all salespersons
from all projects when there are new products to be marketed. It does not stop there, but
there is also a test for salespersons to find out if they understand every information about
the products offered. With this series of activities, the salesperson will be more
knowledgeable about their products and be able to convey any information related to the
products offered clearly and in detail. Attitudes are evaluative statements, both desirable
and undesirable, regarding objects, people, or events [10]. The following is the respondent's
response to the statement in the attitude variable.
Table 2 shows that most employees already have a right attitude, as evidenced from the
mean of 3.89 (high). This finding shows that most of the salesperson already has a high
attitude. The highest response was to the statement about "I am confident in what I am
conveying to customers," with an average rating of 4.03. While the lowest response is in the
statement "My freedom of thought can help me solve any problem" with an average value
of 3.80.
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Table 2. Descriptive analysis
No.
Statement
Mean
Product Knowledge
1
Salesperson possess adequate knowledge about the product specification (PK1)
3.61
2
Salesperson is capable of delivering the information about the product offered in
detailed (PK2)
3.78
3
Salesperson own adequate experienced in selling the product (PK3)
4.63
Attitude
1
Salesperson is flexible and feel free in the way of thinking (AT1)
3.85
2
Flexibility of the salesperson help salesperson solve the problem (AT2)
3.80
3
Salesperson has a freedom in expressing his/her idea (AT3)
3.81
4
Salesperson enjoy activities that exercise the creativity (AT4).
3.98
5
Salesperson belief in one’s idea from the customer (AT5)
4.03
6
Salesperson is involved in task assigned (AT6)
3.59
Salesperson Performance
1
Salesperson is active in all task assigned to him/her (SP1)
3.85
2
Salesperson always achieve the sale target (SP2)
3.66
3
Salesperson capable of delivering satisfaction to the customer(SP3)
3.77
4
Salesperson capable of listening and understanding the needs of different customers
(SP4)
3.63
5
Salesperson capable of presenting well to attract the customer intention (SP5)
3.63
6
Salesperson capable of handling customer needs and desires effectively (SP6)
3.80
7
Salesperson capable of creating mutual respect in every sale activity (SP7)
3.86
8
Salesperson capable of selling to prospective customers (SP8).
3.98
9
Salesperson capable of achieving sales growth as targeted (SP9)
3.80
In addition to understanding all information related to the products offered, salespersons
are also required to be able to express themselves according to the situation and condition
of the customer being faced. Besides, there are also routine activities organized by PT
Intiland Grande in order to hone creativity as well as teamwork for all existing employees,
such as a potluck competition between projects, routine talk shows by motivators, and so
on. Through these activities, it is expected that employees, especially in this case
salesperson, can think freely and flexibly in dealing with existing problems. Also, such
activities will undoubtedly foster a sense of confidence that is getting better so that every
salesperson becomes active in every task that has been given.
4.2 Salesperson performance
Behavior of salesperson is demonstrated by how well each salesperson carries out the
activities when carrying out the work duties [25].
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Fig. 1. Research model
Table 2 showed that most employees have salesperson performance in the high mean
category. This result shows that most employees already have excellente performance. The
highest response was to the statement about "I can sell my product to prospective
customers" with an average value of 3.98 each. While the lowest response is in the
statement, "I can listen and understand the desires of different customers." With an average
value of 3.63. This finding indicates that the salespersons have performed inadequately in
understanding Customer desires. The salesperson should performs well in delivering the
product knowledge since the customers are not in the same mode in receiving the
information. Some customers can receive information quickly, but the rest receive the
information slowly. Therefore, in facilitating the delivery of information to customers, PT
Intiland Grande salesperson uses existing supporting media, such as brochures, catalogs, to
look directly at the show unit as a handling step in meeting customer needs and desires.
With that way, the salesperson can do a proper product presentation with the expectation
the customer get satisfaction.
Tabel 3. Measurement model analysis
Attitude
Product
Knowledge
Salesperson
Performance
AVE
C/R
C/A
R2
Remarks
Product Knowledge
PK1
0.767
0.805
0.733
0.864
0.766
Valid
PK2
0.524
0.855
0.663
0.680
Valid
PK3
0.557
0.814
0.833
Valid
Attitude
AT1
0.793
0.732
0.826
0.693
0.931
0.981
Valid
AT2
0.847
0.671
0.835
Valid
AT3
0.841
0.465
0.756
Valid
AT4
0.877
0.592
0.799
Valid
AT5
0.848
0.653
0.769
Valid
AT6
0.785
0.679
0.763
Valid
Salesperson Performance
SP1
0.767
0.805
0.833
0.612
0.926
0.908
0.984
Valid
SP2
0.527
0.605
0.663
Valid
SP3
0.557
0.614
0.699
Valid
SP4
0.794
0.739
0.829
Valid
SP5
0.847
0.671
0.853
Valid
SP6
0.735
0.576
0.756
Valid
SP7
0.576
0.435
0.799
Valid
SP8
0.635
0.715
0.806
Valid
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4.3 Measurement Model Analysis
Convergent validity indicates the correlation, assessed by the factor loading, between
variables and indicators used in measuring the same construct. The indicators are
considered valid when the factor loading value greater than 0.5 as the minimum
recommended value. Table 3 showed the factor loading of each indicator obtained from the
data analysis using smartPLS software version 3.0. All indicators are considered meet the
convergent validity in all cases (written in bold). This convergent validity shows that the
research instrument used measured what is supposed to be measured. Beside the convergent
validity, discriminant validity indicated if the indicator correlated with its variable more
than its cross-loading with other variables. Table 3 has demonstrated that the cross-loading
of each indicator with other variables are less than its factor loading with its variable.
Another measurement for the determinant validity is shown by the square root of the
average variance extracted (AVE) for each variable with the value of greater than 0.50.
Table 3 also shows the result for the indicators reliability. The reliability assessed the
accuracy and consistency of a measurement model. The composite reliability (C/R) and
Cronbach’s Alpha (C/A) is used to test the reliability of indicators. The minimum
recommended value for composite reliability and Cronbach alpha is 0.7. Table 3 shows that
the composite reliability and Cronbach's alpha values are higher than 0.70 in all cases.
Thus, it can be concluded that all variables have excellent reliability. This result proves that
the measuring model is valid and reliable and the next step for further analysis to test the
hypotheses can be continued. Goodness of fit of the latent dependent variable is measured
using Q2 predictive relevance for the structural model. This evaluation aims to measure
how well the value of the dependent variable is predicted by the model and also the
estimated parameters [32]. The Q2 can be assessed by the Equation (1)
Q2 = 1 − (1 − R12) (1)
with the value of R2 as shown in Table 3. The result gives a value of 0.984 for Q2 of the
salesperson performance. Predictive relevance is acceptable for the value of Q2 greater than
zero. The result indicated that the research model has a good predictive relevance.
4.4 Hypothesis testing
Hypothesis testing aims at determining the correlation or relationship between each
constructs studied. Testing the hypothesis in this study using a significance level of 5 %
with a statistical t-value of 1.965 (two-tail test). Then the hypothesis acceptance criteria
when t statistics greater than 1.96. Table 4 demonstrates the results of a hypothesis testing
where one hypothesis (H1) was accepted, and the hypothesis H2 was not supported.
Product knowledge has a significant effect on salesperson performance, as evidenced by the
t value of 3.939.
Table 4. Hipotheses testing
Relationship
Original
Sample
Standard
Error
T
Statistics
Remarks
Product Knowledge -> Salesperson Performance
(H1)
0.390
0.099
3.940
supported
Moderation of Attitude on the effect of Product
knowledge on Salesperson
Performance (H2)
0.023
0.170
0.138
rejected
While the attitude of the salesperson does not seem to moderate the relationship
between product knowledge and salesperson performance. The finding, product knowledge
influences salesperson performance [30]. In daily practice shows that with complete
knowledge about a product will enable salesperson to allow customers to decide to buy the
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ICSH 2019
product in question. Thus it is essential for companies that sell products to customers to
equip their salesperson through training on the features and attributes of each product.
However, from Table 6 it is also known that attitude does not moderate the effect of
product knowledge on salesperson performance because the t value is 0.138. Thus the
hypothesis in this study, which states that attitude moderates the effect of product
knowledge on salesperson performance is rejected [15]. Explanation of the rejection of this
hypothesis can be explained after having discussions with several respondents wherefrom
their explanation it turns out training or debriefing related to behaving or behaving
optimistically and confidently is not provided by the company. Thus there is no significant
difference between salespersons in carrying out their duties. As a result, there is no
correlation between attitudes either weakening or strengthening the relationship between
product knowledge and salesperson performance.
5 Discussion
The purpose of this study was to examine the effect of product knowledge on salespersons
with the presence of attitude as a moderating variable. The results showed that product
knowledge had a significant effect on salesperson performance. This is evidenced through
the t value of 3.939, which is higher than 1.965. Product knowledge influences salesperson
performance. Product knowledge is a salesperson's knowledge of product design and
features [3]. Therefore, product knowledge by salespersons will significantly affect the
increase in salesperson performance. Salesperson is often a liaison between the company
and the customer, and usually, the customer will ask for a product's basic specifications.
Therefore, it has become the main task for a salesperson to be able to provide an
understanding of the product to customers with specifics and details. Therefore, it is
essential that every salesperson has sufficient product knowledge, which enables them to
have a high salesperson performance. A salesperson with excellent mastery of product
knowledge will have a positive impact on excellent two-way communication between the
salesperson himself and consumers. The application of product knowledge is a solution in
solving employee performance problems, especially for salespersons, so that the final result
will be able to successfully achieve the goals and vision it hopes. The product knowledge
has a positive influence on salesperson performance [30].
Based on the previous presentation, it is illustrated that the product knowledge
possessed by each salesperson at PT Intiland Grande has been highly adequate. The
knowledge initially is obtained during the introduction class held by the company,
particularly when a new products introduced to market. Besides, there are also regular
briefings held every morning to review the product understanding of each salesperson held
by each supervisor of each project. The briefing is very useful for supervisors to monitor
the performance of each salesperson. To evaluate the result infield, there is also a small
random test conducted to re-sharpen the product knowledge possessed by the salesperson.
Finally, the mastery of adequate product knowledge will enhance the salesperson
performance. Thus, excellent product knowledge will create good salesperson performance.
Also, knowing the products sold, salesperson can create added value for customers.
The second hypotheses states that attitude moderates the influence of product
knowledge on the salesperson performance. With the existence of work attitudes and good
employee knowledge of the company, it will encourage employees to work better [31].
Nevertheless, based on the results of this study, that attitude did not moderates the effect of
product knowledge on salesperson performance, as evidenced by the t-value of 0.138. This
finding proved that attitude neither strengthen nor weakening the relationship of product
knowledge on salesperson performance. The reasonable explanation for this finding is the
fact that most of the salesperson perhaps have the same background in the society,
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education, and training provided by the company. Hence, most of them have the same level
of attitude which already in high category as shown in the descriptive analysis. However,
the variance of the performance in correlation with the variance of attitude are not detected
by the data collected which may result in that the attitude does not moderate the
relationship. This finding does not means that the attitude is not essential for the
salesperson. It is crucial to have a right attitude. The attitude of the salesperson determines
how to look at work environment, interact with others, and behave at work. Someone with a
positive work attitude will like his job and solve problems at work happily, while someone
with a negative attitude does not show much enthusiasm and commitment to solving
problems. From the beginning, salesperson at PT Intiland Grande was required to have a
right attitude, especially in conducting sales activities.
6 Conclusions
This study is supposed to examine the effect of product knowledge on the salesperson
performance through the moderating role of the attitude. The result indicated that the first
hypotheses that product knowledge influence the performance salesperson is empirically
supported. While the second hypotheses that attitude moderates the influence of product
knowledge on the salesperson performance was not supported. This rejection of the second
hypotheses is suspected not due to the salesperson did not required the good attitude but
rather because most of the salesperson have the same level attitude (high-level category)
hence the variance of the attitude neither strengthening nor weakening the influence of the
product knowledge on the sales performance. This finding enhancing the insight of the
manager particularly all engaged in property industry that product knowledge is imperative
for the salesperson to succeed in their job. This study also contributes to the on-going study
in the marketing field. Suggestions that can be given for the company to enhance the
salesperson performance is to improve the salesperson knowledge about product
specifications. The company may intensify special classes on product understanding, and it
will be better if the product knowledge class is carried out routinely, and if necessary, by
providing more appropriate tests related to product information mainly for the new
salesperson. Therefore, with regular tests, each salesperson will increasingly understand the
knowledge related to the design and specifications of each product offered. Other indicator
which further intention is the freedom of thought can help the salesperson solve every
problem.
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