PIA HAUTAMÄKI Leading with Individual Consideration ACTA WASAENSIA 365 BUSINESS ADMINISTRATION 145 Forming Value with Customers in Business Interactions Reviewers Professor, Docent Pauli Juuti Mustarinne 6 FI-02770 ESPOO Finland Professor of Practice, Docent Lasse Mitronen Aalto University School of Business P.O. Box 21210 FI-00076 AALTO Finland III Julkaisija Julkaisupäivämäärä Vaasan yliopisto Joulukuu 2016 Tekijä(t) Julkaisun tyyppi Pia Hautamäki Artikkeliväitöskirja Julkaisusarjan nimi, osan numero Acta Wasaensia, 365 Yhteystiedot ISBN Vaasan yliopisto Kauppatieteellinen tiedekunta Johtamisen laitos PL 700 65101 VAASA 978-952-476-710-1 (painettu) 978-952-476-711-8 (verkkojulkaisu) ISSN 0355-2667 (Acta Wasaensia 365, painettu) 2323-9123 (Acta Wasaensia 365, verkkojulkaisu) 1235-7871 (Acta Wasaensia. Liiketaloustiede 145, painettu) 2323-9735 (Acta Wasaensia. Liiketaloustiede 145, verkkojulkaisu) Sivumäärä Kieli 234 Englanti Julkaisun nimike Yksilöllinen johtajuus – Arvon tuottaminen yhteistyössä asiakkaan kanssa liiketoiminnan vuorovaikutustilanteissa Tiivistelmä Yritysten välinen myyminen ja ostaminen sekä siihen liitetyt odotukset ovat muuttuneet viime vuosien aikana. Tämä tutkimus keskittyy johtajuuden osa-alueelle ja siihen, miten myyntihenkilöstön tulisi vastata uuden yritysasiakkaan odotuksiin ja odotusten tyydyttämiseen asiakkaan ostoprosessin alkuvaiheissa. Tutkimuksen teoreettinen viitekehys rakentuu persoonallisuusteorian ja transformationaalisen johtajuusteorian pohjalle. Tutkimuksen empiirinen osa nojaa kvalitatiiviseen ja kvantitatiiviseen aineistoon, jolloin tutkimusta voidaan metodologisesti kuvata käsitteellä monimenetelmällinen tutkimus (eng. mixed method research). Väitöskirjan ensimmäinen osa tutkii yritysasiakkaan johtamista persoonallisuusteorian ja transformationaalisen johtajuusteorian näkökulmasta, toinen osa tutkii yritysasiakkaiden odotuksia uusiin asiakaskohtaamisiin liittyen haastatteluiden ja persoonallisuustyyppien näkökulmasta. Kolmannessa osassa tutkitaan myyjien odotuksia johtajuudelle asiakaskäyttäytymisen muutoksista johtuen uudessa liiketoimintatilanteessa. Vuorovaikutustilanteissa tulisi keskittyä tyydyttämään asiakkaan henkilökohtaiset, persoonallisuudesta nousevat tarpeet sekä mahdollistaa sitä kautta esimerkiksi yritysasiakkaan mahdollisuus kokea myyjäyrityksen sitoutuminen yhteiseen tulevaisuuden rakentamiseen. Henkilökohtaisen johtajuuden kautta myyjällä on mahdollisuus kehittyä asiakassuhteiden muodostajana sekä oppia tyydyttämään persoonallisuudeltaan erilaisten asiakkaiden tarpeita optimaalisimmalla tavalla. Asiakkaan tarpeiden mukainen toiminta jo ennen varsinaista uuden asiakkaan kohtaamista ja varsinaisissa kohtaamisissa mahdollistaa myyntiyritykselle paremmat mahdollisuudet onnistua rakentamaan pitkäjänteisiä molempien osapuolten liiketoimintaa kehittäviä asiakassuhteita. Tutkimus korostaa persoonallisuudesta nousevien tarpeiden tyydyttämisen ja henkilökohtaisen johtajuuden olevan merkittävä tekijä asiakkaiden odotusten täyttämisessä myyjän ja asiakkaan vuorovaikutustilanteissa. Henkilökohtaisella, persoonallisuustyyppitasolla tapahtuvalla vuorovaikutuksella ja transformationaalisella johtajuudella nähdään olevan yhteys myyjän ja uuden asiakkaan vuorovaikutuksellisen arvon kokemuksen muodostamisessa. Tämä tutkimus ehdottaa hyödyntämään myyntiorganisaation johtamisessa sekä myyjän ja asiakkaan vuorovaikutustilanteissa persoonallisuustyyppiteoriaa ja transformationaalista johtajuutta asiakasodotusten täyttämiseksi. Asiasanat Myers Briggs Tyyppiteoria, Transformationaalinen johtajuus, Persoonallisuusteoria, Yritysasiakkaan ostoprosessi, Yritysmyyntityö V Publisher Date of publication Vaasan yliopisto December 2016 Author(s) Type of publication Pia Hautamäki Doctoral thesis by publications Name and number of series Acta Wasaensia, 365 Contact information ISBN University of Vaasa Faculty of Business Studies Department of Management P.O. Box 700 FI-65101 Vaasa Finland 978-952-476-710-1 (print) 978-952-476-711-8 (online) ISSN 0355-2667 (Acta Wasaensia 365, print) 2323-9123 (Acta Wasaensia 365, online) 1235-7871 (Acta Wasaensia. Business Administration 145, print) 2323-9735 (Acta Wasaensia. Business Administration 145, online) Number of pages Language 218 English Title of publication Leading with Individual Consideration - Forming Value with Customers in Business Interactions Abstract Business to business (B2B) selling and buying, and expectations towards interactions, have changed in recent years. This dissertation focuses on leadership and on the new business customers’ expectations and how salespeople need to satisfy these expectations during the early phases in the customer buying process. The theoretical frame is based on personality theory and on transformational leadership theory. The empirical part is based on qualitative and quantitative data, so that the research may be called as a mixed method research. The first section concentrates on research, from a theoretical point of view, of how business customers’ and their individual needs are managed in buyer-seller interactions, the second section focusses on customers’ expectations leading up to and during business meetings from the interview and personality type perspective. The third section focuses on sellers’ expectations of preferred leadership styles in uncertain business environments. Companies would need to focus on interactions to satisfy ones’ personal needs and to accomplish this during the time leading up to meetings and engaging with a customer to initiate a successful future working relationship together which is of paramount importance. When the seller is led individually, (s)he is also trained to develop better relationships with B2B customers and also to satisfy different kinds of customers’ needs which have been identified from their personality types. The satisfaction of customers’ needs enables sales organisations greater opportunities to succeed in building long-term relationships which value both parties. This dissertation highlights the needs arising from different personality types and the individual consideration in terms of personality theory and transformational leadership theory when satisfying customers’ expectations. This study recommends utilising individual consideration of the personality theory of MBTI and transformational leadership theory in sales organisations’ leadership and in buyer- seller interactions, to be able to satisfy business customers’ expectations. Keywords Business to business selling, Buyers buying process, Myers Briggs Type Theory, Transformational Leadership, Personality theory VII ACKNOWLEDGEMENT After almost twenty years of working life in B2B selling, I finally had the chance to write my own dissertation which has been my dream for several years. As a sales leader myself, I often tried to find more information about how to lead my sales team to achieve sales targets. I was surprised that it was difficult to find relevant sales literature which takes account of the individual level of a human being in leadership. Almost all the literature I found on the subject of B2B sales focused on improving performance and on transactional leadership and did not satisfy my needs as a leader. After several years working in this field it became clear to me that I wanted to write a dissertation focusing on the individual aspect of leadership and of the personality perspective that takes account the unique differences between people. I would like to thank Professor Vesa Routamaa at the University of Vaasa who has supported me throughout this journey. Even though my papers’ were submitted late, he always responded quickly and gave me constructive feedback as my personality type needed. I think that Vesa, as a talented and an individual consideration specialist, understood my passion to focus on B2B sales right from the beginning. Actually, Vesa is one of the few professors in Finland who understands the strategic role which B2B sales professionals have in today’s complex business challenges and the only professor, who right from the beginning, said that my ideas were worth researching. I also want to thank Associate Professor, docent Tiina Brandt who worked as a second supervisor on my dissertation. Her feedback was always strict but necessary and there was always a meaning behind it. Special thanks also to my student colleague Piia Uusi-Kakkuri for the important discussions concerning transformational leadership, personality and also other areas of life. I also want to thank my official reviewers Professor, docent Pauli Juuti and Professor of Practice, docent Lasse Mitronen for their important feedback which helped me to take my thesis to the next level. During my working career at Haaga-Helia University of Applied sciences I was involved in different research projects as a researcher with highly accomplished research colleagues. Therefore, at Haaga-Helia I want to thank Dr. Timo Kaski, doctoral candidate Heidi Kock and Dr. Ari Alamäki for the delightful moments discussing B2B sales theories. My thanks also goes to my dear colleague Dr. Johanna Vuori who provided academic support and always found time to answer my research questions during the research process. My thanks also go to Professor Ellen Pullins from the University of Toledo, US for her professional advice on my sales research during the early stages, and also for her professional and meaningful writing cooperation. On the practical side my greatest thanks VIII goes at Haaga-Helia to Pirjo Pitkäpaasi who has, during my research, helped me to remember the practicalities and lessons learnt in B2B selling. Furthermore, Haaga-Helia and Turku University of Applied Sciences have collaborated on many projects together in the area of B2B sales and would like to thank my Turku colleagues. My special thanks goes to Dr. Sini Jokiniemi, who has supported me during the preparation of the final phases on the dissertation. I also want to thank Dr. Sirpa Hänti for our fruitful cooperation in research and writing projects. Finally, I want to thank Dr. Liisa Kairisto-Mertanen and Dr. Pentti Korpela for giving me the chance to understand how much work there is to do in raising the appreciation of sales work in Finland. Last but not least, I want to thank Haaga-Helia library and there, Pia Päivänsalo and Saila Veijalainen. Your service mindset is unforgettable. I would not be here without you. I have been honored to work as a project researcher on projects which are funded by the Finnish Institution of Innovations, Tekes. I have collected data for my dissertation from these projects as part of my work and my gratitude for this goes to Tekes. Additionally, I want to thank the companies attending and funding these projects from their own sides. I also want to thank the Foundation of Economic Education (Liikesivistysrahasto) for the research grant which made it possible for me to finalize my dissertation and raise this way the appreciation awareness of the B2B sales profession in Finland. I am also grateful to Carol Collingwood for proofreading my thesis and, in this way, helping me to better express myself academically. Finally, I want to thank those closest to me. My parents, Arvo and Anita, who have always encouraged me to follow my dreams and taught me that where ever I want to go I am capable of going there. Their belief in me has been important. I want to also thank my parents-in-law, Sirkka and Voitto for their support during my studies. My most precious thanks goes to my boys, Luca and Lenni and to my partner Jukka. I am sure there are still many goals to be reached for sure, but this is, by far, the biggest goal I have achieved. Luca and Lenni, I hope that, during this project, I have been able to teach you the decisiveness and courageousness you will need to fulfil your dreams and I hope this mindset will guide you wherever you want to go in your lives. Jukka, so many duties became your responsibility while I was studying or while I was abroad due to my studies. I am thankful for your love and support and I know that without you this would not have been possible. This dissertation is dedicated to Finnish sales companies so that, with the understanding of the importance of individual consideration, they are able to perform better and provide a valuable B2B sales career to young people. 22.6.2016 Pia Hautamäki IX Contents PART 1 ACKNOWLEDGEMENT ........................................................................... VII 1 INTRODUCTION ................................................................................. 1 1.1 Background ............................................................................. 1 1.2 Research gaps ......................................................................... 9 1.3 Study objectives and research questions ................................ 13 1.4 Research context ................................................................... 16 1.5 Structure of the dissertation .................................................. 18 2 BACKGROUND THEORIES OF THE DISSERTATION .............................. 20 2.1 Personality theory .................................................................. 20 2.1.1 Jung’s theory of personality .................................... 23 2.1.2 Myers Briggs personality theory .............................. 25 2.2 Transformational leadership .................................................. 30 2.2.1 Bass’ theory of transformational leadership ............. 33 2.2.2 Studies concerning transformational leadership and personality types ..................................................... 39 2.2.3 Transform in B2B selling – TF-leadership and personality types in B2B sales studies ..................... 40 3 RESEARCH METHODOLOGY .............................................................. 45 3.1 Philosophical choices and research strategy ........................... 45 3.2 Validity and reliability ............................................................ 51 3.3 Instrument and its reliability and validity ............................... 53 4 MAIN RESULTS IN STUDIES ............................................................... 57 4.1 Study 1: Business to Business Buyer-Seller Interactions – Personality and Transformational Leadership Theories’ Perspective ............................................................................ 57 4.2 Study 2: Business Buyers’ Expectations in Buyer-Seller Encounters – What Really Matters? ......................................... 59 4.3 Study 3: Buyer versus salesperson expectations for an initial B2B sales meeting .................................................................. 60 4.4 Study 4: The buyers’ pre-buying phase – aspects from the personality perspective .......................................................... 61 4.5 Study 5: Personality types in buyer-seller interactions ............ 62 4.6 Study 6: Sales Leadership in Complex Business Environments 63 5 CONTRIBUTION AND CONCLUSIONS ................................................ 65 5.1 Theoretical contributions ....................................................... 67 5.1.1. Leading buyer-seller interactions ............................. 72 5.1.2. Buyer expectations to buyer-seller interactions ........ 72 5.1.3. Leading salespeople in changed business environment ........................................................... 75 X 5.2 Practical implications ............................................................. 76 5.3 Limitations and recommendations for further research .......... 79 REFERENCES .......................................................................................... 81 APPENDICES .......................................................................................... 98 Appendix 1. Interview questions for salespeople ............................. 98 Appendix 2. Interview questions for buyers ................................... 102 Appendix 3. Interview questions (2) for salespeople ...................... 106 Appendix 4. Interview questions (2) for buyers .............................. 107 Figures Figure 1. The framework of the dissertation ........................... 15 Figure 2. Embedded case study research design and data collection in this study ............................................ 47 Figure 3. A model to buyer-seller interactions in terms of individual consideration with MBTI and with TF- leadership in context of sales leadership ................. 58 Tables Table 1. Summary of characteristics of studies included in the dissertation ................................................................... 19 Table 2. Characteristics associated with each type (Myers & McCaulley, 1985) ........................................................... 29 Table 3. Characteristics of transformational leaders (reworked from Bass, 1985) ........................................................... 36 Table 4. Methodological choices in this thesis ............................. 50 Table 5. The contributions of the six published studies ............... 65 Abbreviations B2B Business to Business MBTI Myers Brigss Type Theory and Indicator TF-leadership Transformational leadership XI PART 2 – Published studies This dissertation is based on six appended studies: I. Hautamäki, P. (Forthcoming). Business to Business Buyer-Seller Interactions – Personality and Transformational Leadership Theories’ Perspective. Accepted to be published in Leadership, Innovation and Entrepreneurship as Driving Forces of the Global Economy. 1 II. Hautamäki, P. (2015). Business Buyers’ Expectations in Buyer-Seller Encounters – What Really Matters? International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 9(4), 1325 – 1330. 2 III. Kaski, T., Hautamäki, P., Pullins, E. & Kock, H. (Forthcoming). Buyer versus salesperson expectations for an initial B2B sales meeting. Accepted to be published in Journal of Business and Industrial Marketing. 3 IV. Hautamäki, P. (2016). The buyers’ pre-buying phase – aspects from the personality perspective. Proceedings of the 14th International Conference of the Society for Global Business & Economic Development, Montclair: New Jersey.4 V. Hautamäki, P. & Routamaa, V. (2016). Personality types in buyer- seller interactions. Proceedings of the 14th International Conference of the Society for Global Business & Economic Development, Montclair: New Jersey. 5 VI. Hautamäki, P. 2015. Sales Leadership in Complex Business Environments. Proceedings of the 11th European Conference on Management Leadership and Governance Military Academy Lisbon, Portugal, 12-13 November, 2015.6 1 Reprinted with the kind permission from Springer. 2 Reprinted with the kind permission from Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering 3 Reprinted with the kind permission from Emerald Group Publishing Ltd. 4 Reprinted with the kind permission of the Society for Global Business & Economic Development. 5 Reprinted with the kind permission of the Society for Global Business & Economic Development. 6 Reprinted with the kind permission from Academic Conferences and Publishing International Ltd. 1 INTRODUCTION 1.1 Background Today’s business to business (B2B) organizations are facing many changes and they need to reinvent themselves to survive as the challenges faced are more complex than before. The challenges today are interconnected, and changing one thing will lead to unexpected consequences so that the business environment may seem more uncertain than before. The transformation of this challenging business environment may be partly due to digitalization, increased global competition and market fragmentation. Digitalization can be seen to also affect the changes to how customers serve themselves before, during and after purchase. (Ostrom, Parasuraman, Bowen, Patrício, & Voss, 2015; Spina, Caniato, Luzzini, & Ronchi, 2013.) Additionally, digitalization in the B2B environment has changed the way who determines the value experienced. Previously sales companies made decisions of what is valuable to sell to B2B customers. Today digitalization assists customers to easily obtain more information about the solutions needed. This has brought us to a situation, where the business customer is the one who determines the value and also takes part in the creation of value (Grönroos & Voima, 2013; Vargo & Lusch, 2008). This affects B2B selling which today is a more demanding profession than ever before. If earlier, the salesperson’s work was seen to bring product information to customers, today customers’ look for salespersons who are able to form value together with the customers, act as change architects and be successful to lift a customer’s business on a more contributive level. (Dixon & Tanner, 2012.) If the earlier marketing theories based their orientation on economic and product issues, today the focus is on interaction and on the value creation between buyer and seller (Lindgreen, Antioco, Palmer, & Heesch, 2009; Vargo & Lusch, 2004). Because the offerings and also the needs of customers are more complex, uncertain and knowledge intensive than previously, the customer and their supplier are more dependent on each other (Nordin & Kowalkowski, 2010). However, buyers should not be considered only as rational and cognitive decision-makers but this uncertain and continuously changing business environment should promote the need for sales organizations to adopt a human approach when meeting their customers and take, for example, their emotions and experiences into account (Haas, Snehota, & Corsaro, 2012). This is especially important because the prospective value formed is determined by the customers (Payne, Storbacka, & Frow, 2008; Vargo & Lusch, 2004, 2008). Sales literature 2 Acta Wasaensia of the interaction processes from the customers and sellers perspective is scant (Hohenschwert & Geiger, 2015). There have been calls for a greater understanding of the role of relations when forming value experiences between the customer and seller (Grönroos, 1999; Ravald & Grönroos, 1996). In relationship marketing the focus is on relations, and in this study the focus is on the sales company and its personnel, so that they are able to enhance long- term relationships and, therefore, ensure a continuous, loyal, stable and profitable business. One indication has been to add value on the offered product, for example, by strengthening quality or building supportive services around the product. (Ravald & Grönroos, 1996.) This study identifies that the interaction can be the experienced value itself (see Hohenschwert & Geiger, 2015; Salomonson, Åberg, & Allwood, 2012). Furthermore, because fewer studies have looked as deeply into the interactional phenomenon between buyer and seller, this study tries to solve the relational, interactional and behavioral aspects of value from the business customers point of view, thereby offering sales organizations a deeper understanding of how to form value interactions with their customers. This dissertation focuses on new B2B customers and sellers as human beings and studies the buyer-seller interactions and expectations in this uncertain and demanding business environment. It provides a deeper understanding of the phenomenon around interactional value formation in buyer-seller interactions in the area of B2B buying and selling services. Additionally, all the empirical data in this dissertation was collected from participants who were employed in B2B sales or buying professions during the years 2014-2015, when the data was collected. Recent changes in the B2B buying process has affected sales organizations. The buying in customer companies is, for example, more sophisticated than before and suppliers, who are able to build long-term relationships and form value with the customer for a long run, are the dream sellers of the B2B buyers early buying phase. Today at the buyers’ side, there is a team to take care of the purchasing and even smaller purchases are on the table of companies’ management team. Additionally many manufacturing companies and their business buyers look for better profits and increased revenue from the services offered (Nordin & Kowalkowski, 2010). However, often in sales organizations the only link to the buyer organization is the initial B2B salesperson. Often, on the buyers’ side, there is also another individual who is taking care of the pre-buying phase and searching for possible partnering supplier companies. Furthermore, these individuals on the buyers’ side are able to make decisions about the future Acta Wasaensia 3 partnering supplier organizations even before the sellers know that the customer has a problem to be solved. When the salespeople have the first contact with the customer, these B2B salespeople need to be able to satisfy customers’ needs and form value experience for future cooperation purposes. If these sellers are not able to form experience of value to these buyer organizations representatives, it might be that the sellers are not able to proceed into meeting with these customers and the deals on the demanding B2B selling side will not be closed. In this study, which focuses on the demanding B2B service sales, the buyers may be categorized as strategic value buyers (Rackham & DeVincentis, 1999). The degree of value experienced during the buyers pre-buying phase, or at the sales meetings, depends on the buyer’s profile, for example, what is the customer actually buying and what, from this point, is valuable to this initial buyer. In this commonly used and applicable framework of Rackham and DeVincentis (1999), the customers are divided into three different buyer types: intrinsic value buyers, extrinsic value buyers and strategic value buyers. For the intrinsic buyers the value is the product and there is no need for sales personnel. Often this kind of selling is shifted to the webstores today. Extrinsic value buyers see value additional to the product, the information on how to use the product. This means that sales personnel may offer value to their customers by carrying out accurate needs identification and by advising the customer to solve their specific needs by using and applying the product. Strategic value buyers prefer long-term partnerships where both parties have common goals and often both of these parties need each other to be successful in business. Strategically important to selling and buying is sales service cooperation, where the salesperson is needed to build value together with the B2B customer and where the buyer organizations are looking for long term partner companies. Studies have shown that buyers in the B2B environment today, look for long- term relationships and their demands come from a more comprehensive perspective and skill set than before (Blocker, Cannon, Panagopoulos, & Sager, 2012; Haas et al., 2012). Moreover, recent studies on B2B sales and value creation have found that value creation is formed between seller and buyer on relational and individual level interactions (Corsaro & Snehota, 2010; Edvardsson, Holmlund, & Strandvik, 2008; Grönroos, 2011; Haas et al., 2012; Hohenschwert & Geiger, 2015). Different B2B sales approaches, such as solution selling, consultative selling and value selling, have proposed that seller activities improve the effectiveness of customer business and from this point of view the salesperson creates value (Anderson & Wynstra, 2010; Terho, Haas, Eggert, & Ulaga, 2012; Tuli, Kohli, & Bharadwaj, 2007). Often, in sales approaches, the focus is on meetings from the start of the relationship between buyer and seller. 4 Acta Wasaensia Additionally, most research on customer value creation focuses on product- oriented sales, not on the relational aspect of selling (Parasuraman & Grewal, 2000). Moreover, there is a lack of studies which take account of the buyers pre- buying phase (see Jokiniemi, 2013). There are some examples which show that the value formed together with the customer would need to be studied more closely (Echeverri & Skalen, 2011). For example, Tuli et al. (2007) focused on customer solutions and found that customers looked for relational processes during the solution building and the relational process was experienced as a value itself. Additionally, there are many examples of relational processes in selling which have positively affected customers satisfaction and commitment (Grönroos, 2011; Grönroos & Voima, 2013) and also identify the interactive selling process as a value (Edvardsson et al., 2008; Hohenschwert & Geiger, 2015). According to the changes in business, sales work has recently been defined as the work of a relationship manager (Storbacka, Ryals, Davies, & Nenonen, 2009) and earlier studies on the approach of relationship selling has been found to be an effective way to conduct sales (Crosby, Evans, & Cowles, 1990; Palmatier, Dant, Grewal, & Evans, 2006). However, few studies have got closer to the phenomenon of relationship selling and the meaning of the seller meeting in different interactional phases with another human being. Business customers differ in how they prefer to be approached, how much information they need and how they make decisions (see Myers & McCaulley, 1985). As a result, B2B salespeople must have a deep understanding of their different strategically important business customers and their needs in order to meet their expectations or to help them to see their business possibilities. (Blocker et al., 2012; Dixon & Tanner, 2012; Tuli et al., 2007.) In addition, it is important for sales organizations to be aware of the kinds of activities B2B buyers look for when searching suitable future partners. Thus, it is important to understand buyers’ perceptions of the pre-buying phase activities and of what has the greatest impact on first sight. This is more important in business environments where the buyers require complex solutions and intangibles into which the access is involved only after decisions have been made (Edvardsson et al., 2008; Nordin & Kowalkowski, 2010). Because in B2B service selling, there are often situations where buyers are not able to evaluate the solution and service prior to purchase, therefore the satisfaction of B2B buyers’ relational expectations are worthy of consideration. Nevertheless, according to earlier studies, in B2B relationships the value is seen through the entire relationship (Bienstock & Royne, 2007; Kim, 2014), and this is why this study also takes the pre-buying phase into account. Recent changes in buying challenge Acta Wasaensia 5 salespeople, as different B2B customers in the same company may view the possible value proposals of the cooperation differently. This is also why identifying possible gaps or differences in perceptions is a critical step while forming value with the buyer organization’s decision makers (Ulaga & Chacour, 2001) and also during B2B buyers pre-buying phase. Relationships have been seen to evolve over time and the salespersons’ task is to guide the buyers through the relationship development process (Crosby et al., 1990; Dwyer, Schurr, & Oh, 1987). According to earlier studies of relational selling often the approach has concentrated on interactional competences or quality (Biong & Selnes, 1995; Crosby et al., 1990; Jones, Brown, Zoltners, & Weitz, 2005) or on competencies that build trust, gain commitment and develop satisfactory relationships (Doney & Cannon, 1997; Dwyer et al., 1987; Jolson, 1997). In business today the activities that salespeople undertake on an individual level with the customer before and during a meeting are important because expectations frame the customers experienced value resulting from the initial sales meeting (Kenny, 1994), so there will always be expectations which are experienced in earlier business interactions. The best possible situation would be when the expectations are in line with the customer and seller according to Oliver’s (1977) expectancy theory. However, there are fewer B2B sales studies on relational partnership initiating, albeit that sales work is gaining more and more relationship building elements (Ingram, LaForge, & Leigh, 2002) where the customers’ expectations and their earlier experiences may play a big role in the value experienced. Furthermore, research shows that personal interactions are important for the continuation of a relationship and relationship failures have been traced back to interpersonal problems (Ford, 1980). The way to build close relationships has often been observed from the adaptive selling skills perspective and this approach has also gained positive results on sales performance and better relationships with the customers (Crosby et al., 1990; Giacobbe, Jackson, Crosby, & Bridges, 2006; Spiro & Weitz, 1990; Williams & Spiro, 1985). Sales literature has frequently discussed adapting to the buyer by using influencing tactics and communication (McFarland, Challagalla, & Shervani, 2006; Weitz, 1981; Williams & Spiro, 1985). Evidence suggests that salespeople, rather than buyers, adapt their approach according to the situation (Edvardsson et al., 2008). Personal similarity is thought to be particularly important in the relationship initiation phase because it increases confidence and feelings of trust (Biong & Selnes 1995), but there is less research to assist, for example, the adaptive selling approach in determining a buyers’ “true” personality type. Strategies for communication or learnt influencing tactics may not work if the value forming with the customer takes several interactive 6 Acta Wasaensia encounters. Without knowing the personal needs behind the expectations, adapting to a customers’ needs and satisfying their expectations can be challenging (see for example Myers, 1992). Regardless, it is known that in B2B encounters salespeople need to adapt to different situations and customers to be able to provide tailored solutions (Román & Iacobucci, 2010; Weitz, Sujan, & Sujan, 1986) but, as far as is known, there are few studies of how to concretely adapt to customers’ needs. Additionally in the global environment, the complex needs of customers and buyers’ buying habits learned as a consumer, acknowledges the skills of the salespeople to sell tangibles and valuable services to their business buyers in actual buyer-seller encounters (Adamson, Dixon, & Toman, 2012; Jones et al., 2005). Since studies show that nowadays the buyer is the one who starts the business interactions (Agndal, 2006; Overby & Servais, 2005), it is important to closely study business buyers’ expectations and needs towards buyers’ pre-buying phase and actual interactions, so that salespeople are able to develop a concrete understanding of what type of activities form value experiences to the buyers in their early buying phases (Day & Crask, 2000; Sweeney & Soutar, 2001) and in B2B meetings. Because there are, as far as is known, only a few studies of the expectations from the buyers’ side, this thesis focuses firstly on the study of the expectations of customers in order to be able to adequately address the research problem. Moreover, this study does not use relationship marketing theories, because the data is mostly collected from the consumer side or from the customers who already have good relationships with their suppliers. Often the studies have focused on products and not on services and intangibles, or the studies do not address today’s demanding B2B environment’s challenges. Additionally, because this study focuses on buyer-seller interactions, it does not take into account the networks influencing the cooperating partners because the phenomenon is complex enough (see Christopher, Payne, & Ballantyne, 1991; Flint, Woodruff, & Gardial, 2002; Håkansson & Ford, 2002). Because of the scarcity of the value formation studies from the customers’ point of view, this study examines customers’ expectations from different theoretical perspectives to contribute on value formation from the interactional perspective. Moreover, the focus is on new B2B customers and on their and their seller’s expectations. This study does not take account of the wider environment which may affect buyer-seller interactions such as buyers’ or sellers’ supervisors, culture, organizational elements like structures or situational elements. Acta Wasaensia 7 This dissertation provides an in-depth view of the theory of buyers’ expectations and interactions through the use of the Myers Briggs Theory of personality types. Myers Briggs Theory of personality is based on Carl Jung’s (1921) personality theory and has been further developed to a measurement called Myers Briggs Type Indicator (MBTI), which is a dynamic measure of personality. MBTI is one of the most used tools to define the personality and, in recent times, it has been used largely in organizational studies (Brown & Reilly, 2009; Carroll, 2010; Hautala, 2008; Müller & Turner, 2010) and as a tool in companies in leadership development programs (Hautala, 2005). Additionally, this dissertation examines expectations with Oliver’s (1977) expectancy disconfirmation theory to find out how the buyers’ and sellers’ expectations align. Oliver’s (1977) expectancy disconfirmation theory is a cognitive psychological theory which is used most frequently to explain post-purchase satisfaction resulting from expectations, perceived performance and disconfirmation of beliefs. In this dissertation the focus is on buyers and sellers’ expectations towards buyer-seller interactions and Oliver’s theory (1977) was used to study both B2B buyers and sellers’ expectations. In Oliver’s (1977) theory disconfirmation occurs when the perceived performance departs enough from the expectation for the buyer to view the expectation to have been incorrect. Disconfirmation can be positive (the performance is better than expected) or negative (the performance failed to live up to the expectation). Disconfirmation, then can positively or negatively influence satisfaction with the salesperson. In social psychology, customer satisfaction is seen to be a function of positive disconfirmation (Oliver & Desarbo, 1988; Oliver, 1977). If expectations are in line between the customer and seller it is referred to as a confirmation of expectations: both parties are satisfied and expectations are met (Oliver, Balakrishnan, & Barry, 1994). After understanding the expectations of buyers and sellers, it is important to offer sales leadership which fits this complex and demanding environment and help salespeople to form value experiences with the customer by satisfying their expectations. Recent studies have claimed that offering sales leadership knowledge is one of the most important topics for the future salesforce and successful organizations (Ingram, 2004; Ingram et al., 2002). There are many definitions for leadership but the main guideline could be presented in one theoretical study of effective leadership and personalities, that leadership is about acting, things to do and complete (Andersen, 2006). To answering for the gap in sales literature in this complex business environment where the salesperson is in charge of value formation with the business buyer, this study uses the theory of transformational leadership (TF-leadership) to help the salesperson to form experience of value formation with the customer. Additionally, TF-leadership, in this study, is also seen to help sales directors 8 Acta Wasaensia when they are leading their salespeople to satisfy customers’ expectations, so leadership is studied in buyer-seller interactions and from the salespersons point of views. As noticed in many recent studies the use of TF-leadership in today’s complex business environment, should be the base for all leadership activities (Edwards, 2012; Hunt, Osborn, & Boal, 2009). Studies have also shown TF-leadership to lead to increased performance in sales organizations (Humphrey, 2002; MacKenzie, Podsakoff, & Rich, 2001). According to recent overall business area studies on TF-leadership, it has resulted in several benefits to different businesses, for example, to a better individual follower performance, well-being, higher productivity levels and greater level of job satisfaction (Arnold, Turner, Barling, Kelloway, & McKee, 2007; Nielsen, Yarker, Randall, & Munir, 2009; Wang, Oh, Courtright, & Colbert, 2011; Wang & Howell, 2012). It might be said that it seems to be a highly promising model to utilize albeit Dubinsky, Yammarino, Jolson, & Spangler’s (1995) study recommended transactional leadership activities to sales management settings. As sales literature has shown, in today’s buyer-seller interactions salespeople need to have skills to solve business buyers’ complex needs, wide-ranging knowledge, work as a value adding advisor to the buyers’ and demonstrate competence when playing a key role in building the buyers’ desired long-term relationships (Crosby et al., 1990; Dixon & Tanner, 2012; Jones et al., 2005; Marshall, Goebel, & Moncrief, 2003). In contrast this study is disseminating transformational elements of TF-leadership to lead buyers and salespeople and give individual consideration in terms of personality theory of the Myers Briggs Type Indicator (MBTI) to be able to satisfy expectations. There are several different measurement options to measure personality, but because MBTI has recently been used largely on leadership and personality studies (Brandt & Laiho, 2013; Brown & Reilly, 2009; Carroll, 2010) and because the connection with TF-leadership has been clarified several times (Brandt & Laiho, 2013; Carroll, 2010; Hautala, 2006), it was decided to also use these theories in this study. When this dissertation is focused to examine buyer-seller interactions, where the salespeople is seen to be the leader of the customer, there also lie an important aspect of how the salesperson is needed to be led that (s)he is able to satisfy his or her customers’ expectations. Studies show that leaders’ high self-awareness has a connection to effectiveness (Atwater & Yammarino, 1992; Bass & Yammarino, 1991). This study shows that this complexity in business environments actively affects sellers therefore, improving self- awareness and individual consideration may increase their success in business. That is why this study sees that transformational elements which have shown to Acta Wasaensia 9 recently increased follower performance (Wang et al., 2011; Wang & Howell, 2012), will also be beneficial when leading the salespeople. And these same elements may also benefit the sellers work when they are leading their B2B customers. However, findings show that building relationships is one possible way to improve sales performance and that similar personalities are important in phases where relationships are developing (Biong & Selnes, 1995; Macintosh, Anglin, Szymanski, & Gentry, 1992). This dissertation uses the theory of TF-leadership as an individual level tool for salespeople to lead their business customers in interactions and the personality theory of Myers Briggs as an individual level tool to treat the buyers so that their relational expectations will be satisfied. TF- leadership gives examples of how to lead the buyers on an individual level, however the personality theory is used to go deeper to enable the individual to adapt to one’s relational, interactional and behavioral activities towards buyers’ expectations. The aim with this dissertation is to improve understanding of buyer-seller interactions, buyers’ needs and expectations and to bring new knowledge to lead valuable relational initiation and interaction phases which are less studied (cf. Edvardsson et al., 2008; Jokiniemi, 2013). While sales literature provides varying definitions of customers experienced value, this dissertation will define value formation as relational, interactional and behavioral and as a dependent variable on both the buyer and the seller. 1.2 Research gaps Research on B2B sales has not been able to build a model of how to fulfill the buyers’ needs in their pre-buying phase or in buyer-seller interactions. In sales, adapting to buyers’ needs on an individual level can be said to be one of the central business activities when initiating business relationships (Schurr, 2007; Viio & Grönroos, 2015). Also the salespeople’s willingness to adapt is important , because the motivation of salespeople to adapt may act as a converter in the relationship initiation phase (Edvardsson et al., 2008). Since B2B sales professionals are still needed in selling intangibles and in relational buyer-seller interactions (Echeverri & Skalen, 2011; Haas et al., 2012; Hohenschwert & Geiger, 2015; Salomonson et al., 2012), it is necessary to study how the relationships should be initiated based on customers’ appraisals, especially when studies show that the interaction itself is seen to add value (Grönroos & Voima, 2013; Hohenschwert & Geiger, 2015). The significance of relational activities has 10 Acta Wasaensia not been studied as the main driver of enabling systematic value forming experiences in B2B contexts whereas distributing know-how and resources are seen to be central (Blocker et al., 2012; Grant, 2013; Haas et al., 2012; Håkansson, Ford, Gadde, Snehota, & Waluszewski, 2009; Shannahan, Bush, Moncrief, & Shannahan, 2013; Ulaga & Eggert, 2006). As noted, selling characterizes relational aspects with a long-term perspective and value formation relationally is seen as crucial with buyers (Biong & Selnes, 1995; Ford, 1980; Haas et al., 2012; Verbeke, Dietz, & Verwaal, 2011) and the interactional elements are important to form value with the buyer (Echeverri & Skalen, 2011; Grönroos & Voima, 2013; Haas et al., 2012; Hohenschwert & Geiger, 2015; Salomonson et al., 2012). Interactional selling was studied at the beginning of this century and it was identified that the customer-oriented behaviour of a successful salesperson largely results from the salesperson’s ability to create and maintain relationships (Williams & Attaway, 1996). Hence, personal elements can be seen to play an important role when satisfying business customers’ expectations in buyer-seller interactions (Biong & Selnes, 1995; Dion, Easterling, & Miller, 1995). However, it is important to understand that there might not be any single best way to implement B2B selling, because salespeople need to adapt to every situation and to every buyer (Román & Iacobucci, 2010). Nevertheless, very little is known about relationship building and adaptation to accommodate buyers’ needs (Franke & Park, 2006; Guenzi, Pardo, & Georges, 2007). Additionally there are less studies of dyadic perspective from both buyers and sellers perspectives and how their expectations align (Ahearne, Jelinek, & Jones, 2007). When customers look for long-term relationships it has been identified that their demands come from a more comprehensive level than previously (Blocker et al., 2012) and it may be seen that the value forming in buyer-seller interactions could have arisen from personal needs and skills to initiate relationships. Dixon and Tanner (2012) defined selling as a ‘human-driven interaction’, which transforms the traditional interpretation of sales, which is no longer seen to be adequate (Moncrief & Marshall, 2005). Only few studies have focused on the B2B buyers side and studied their needs in today’s business environment (Agndal, 2006; Ahearne et al., 2007; Crosby et al., 1990; Overby & Servais, 2005), and there are very few explanations of how salespeople need to sell in this situation (cf. Jones et al., 2005; Korpela, 2015; Subramony & Pugh, 2015). Additionally, most studies focus on the phases during and after the sales meetings, but there is less evidence to show that studies have been carried out into the relational pre-buying phase, the time before the sales meetings (Edvardsson et al., 2008; Jokiniemi, 2013). It is also shown that usually salespeople tend to focus on relationships on a short- Acta Wasaensia 11 term basis rather than taking a long-term perspective thus the B2B service selling would need to take that into consideration (cf. Viio and Grönroos, 2015). The TF-leadership model has been shown to positively relate to individual follower performance and is also strongly related to contextual performance as opposed to task performance (Wang et al., 2011). As suggested earlier, transactional leadership would better address salespeople than TF-leadership (Dubinsky et al., 1995). Today the sales leaders’ role should be seen primarily as an architect of change (Ingram, Laforge, Locander, Mackenzie, & Podsakoff, 2005). This same change is also suggested by Dixon and Tanner (2012) who claim that salespeople need the skills to act as an architect of change. Sales has earlier been seen to be consistent with task-oriented activities, but this study is placed so that selling should be seen contextually, where also TF-leadership has been found to increase performance (Wang et al., 2011). This study suggests using individual level oriented TF-leadership to lead B2B customers in buyer- seller interactions to fulfill the needs of the business buyers. By doing so it builds a theoretical model of the relational approach to leading customers and building partnerships for the long-term. Earlier studies on the relational selling approach have not acknowledged the elements of TF-leadership and it is seen that, for example, the shared vision and mission that lead to long-term partnerships and context-based information sharing, are more indicative activities of a change architect (Biong & Selnes, 1995; Crosby et al., 1990; Doney & Cannon, 1997; Dwyer et al., 1987; Ingram et al., 2005; Jolson, 1997). Furthermore, as far as is known, salespeople’s preferred sales leadership activities have not been studied in leadership literature, there being only a few studies from the followers’ perspective (Hautala, 2005; Hautala, 2008; Hautala, 2007; Routamaa, Honkonen, Asikainen, & Pollari, 1997; Routamaa & Ponto, 1994). However, recently sales research has noticed how TF-leadership is used to lead B2B sellers to increase sales performance (Humphreys, 2002; MacKenzie et al., 2001). According to studies of personality types (measured by MBTI) and TF-leadership, followers who share a similar personality type with their leaders are more likely to develop a strong commitment to their leader (Felfe & Schyns, 2010). It is also shown that people with certain personality types are more transformational leaders than other types (Brandt & Laiho, 2013; Carroll, 2010; Hautala, 2006). When these results are compared to buyer-seller interactions, salespeople using both TF-leadership behaviors and individual consideration in terms of personality, may meet customers’ expectations in buyer-seller interactions (Dion et al., 1995; Felfe & Schyns, 2010; Routamaa et al., 1997; Routamaa & Ponto, 1994). Additionally, the study by Dion et al. (1995) revealed that if the customer perceives a connection with the salesperson, sales performance increases and the 12 Acta Wasaensia customer feels positive towards the sales relationship. One study found that in the medical sector patients’ complaints about doctors were concerned largely with communication rather than clinical competence and the authors claimed that poor communication may be due to personality type differences across the need for information and the way of gathering it (Clack, Allen, Cooper, & Head, 2004). Similarly, one study found that sellers’ communication skills are significant when determining a buyer’s perceived quality of the relationship during the buying process (Parsons, 2002). In sales literature the relational selling approach has identified that relationship initiation is important and that personality factors play an important role when the most effective performer has been identified. These personal factors are based on age, gender, weight, race or appearance on the sellers side (Churchill, Ford, Hartley, & Walker, 1985), and not to the “true” personality types of B2B buyers or sellers. Furthermore, Biong & Selnes (1995) found in their study that personal similarities were more important in low dependence relationships especially where there were many uncertainties. Research shows that the initial interactions between the B2B buyer and seller may be either constructive or de-constructive (Echeverri & Skalen, 2011). It would be beneficial to have more knowledge in this business environment of what kind of activities form value experiences for the customer and when the customer experiences that initial, constructive interaction. (cf. Echeverri & Skalen, 2011; Ford, 1980; Weitz, 1981). There are few recent studies about demanding business environments, which have taken into account the individual consideration, expectations and preferred needs from the buyers’ and sellers’ perspective to be able to form value experiences with the customer in buyer-seller interactions. Several studies have called for more research about what really happens in interactive processes between a seller and a customer, how different personality types influence the experience of the value formation with the buyer and what is the best way to lead the buying process to form value with the customer in dyadic situations (Ahearne et al., 2007; Blocker et al., 2012; Dwyer et al., 1987; Grant, 2013; Haas et al., 2012; Shannahan et al., 2013). Nevertheless, there are some studies which have revealed that there are challenges when sales organizations are trying to form value with their customers and often the relational processes are left under consideration from the sellers point of view (Tuli et al., 2007). Based on these findings, this dissertation aims to answer these theoretical gaps in the buyers’ pre-buying phase and in buyer-seller interactions. To address these research gaps in initiating relationships, this study utilizes Jung’s (1921) theory of personality and psychological types and the Myers Briggs Type indicator, MBTI. MBTI which is a widely used tool for improving individual understanding and Acta Wasaensia 13 collaboration with others (Gardner & Martinko, 1996). In this study MBTI is used to understand the individual level expectations and needs of buyers according buyer-seller interactions. The period leading up to meetings and the relational activities between salespeople and customers is an unexamined area and the MBTI is used because it explains individuals’ innate preferences behind their expectations (Briggs Myers & Myers, 1993; Brown & Reilly, 2009). Additionally, in one study included in this dissertation, the expectations towards initial sales meetings from B2B buyers and sellers’ perspectives have been studied with the expectancy confirmation theory by Oliver (1977) which is largely used on consumer studies. As noted earlier, to be able add to individual consideration by MBTI to lead buyer-seller interactions, the theory of TF-leadership is used to build a conceptual framework for leading the buyer-seller interactions and to lead todays sales personnel. The aim of this dissertation is to improve understanding of buyer-seller interactions and the relationship initiation phase from the period leading up to the first meeting. The research contributes to the subject by introducing new knowledge of business customers from both professional buyers’ expectations and business buyers’ expectations and their needs for buyer-seller interactions and how to lead interactions in the context of sales leadership. 1.3 Study objectives and research questions When concentrating on buyer-seller interactions the main research questions this dissertation seeks to answer is as follows: How to utilize personality theory and transformational leadership in different phases of buyer-seller interactions in the context of sales leadership? This study is focusing on the abovementioned research problem by studying the problem from three difference perspectives. First of all, because there are fewer studies relating to the B2B customers’ side this study looks at the theoretical perspective that shows how the customers should be led and treated so that their expectations will be satisfied. The second element relates to customers’ expectations and uses empirical data to determine what the customers’ expectations are before and during meetings and whether there is a connection between personality types and expectations. The third element relates to sellers’ appraisals with their managers and how these can aid the seller to satisfy customers expectations in these changing and uncertain times. 14 Acta Wasaensia These elements are manifested in following secondary questions: Q1. Could the theories of MBTI and transformational leadership be utilized in buyer-seller interactions to form relational value with the customers? (Study 1) Q2. What kind of expectations do the business buyers have to the buyer-seller encounters in this changed business situation? (Study 2) Q3. How do the value creation expectations align for initial sales meetings between buyer and seller? (Study 3) Q4. Is there a connection between the buyers’ expectations to buyer-seller interactions and with the buyers’ personality types? (Study 4) Q5. Why and to what extent buyers’ meet salespeople and do the favoured activities arise from personality types of the buyers? (Study 5) Q6. How salespeople prefer to be led in complex business environments? (Study 6) As shown in Figure 1, this dissertation attempts to explore the unique and context-based, broad phenomenon with the aim of advancing both the theory and practice. First, this study explores whether the theories of TF-leadership and personality theory of MBTI could be utilized in buyer-seller interactions so that the salespeople would be able to form experiences of value on an individual level and together with their customers. The first study aims to contribute to its secondary question from the earlier studies on TF-leadership and MBTI. Furthermore, this study sheds light on the relational approach of selling by building a model for value formation with buyers from the relational perspective based on TF-leadership and MBTI theories. Secondly, this study tries to clarify the expectations which buyers have towards buyer-seller interactions. Clarity is achieved in studies two, four and five, where study two is more focused on buyers’ expectations at a general level in demanding business environments. Study four focuses on the business buyers pre-buying phase and on buyers’ expectations towards salespeople’s activities before the first sales meeting has been arranged. This study also clarifies the role of the personality types behind business buyers’ needs during their pre-buying phase. Study number five, which examines the business buyers’ expectations for the actual buyer-seller meetings, focuses on researching the connection to buyers’ expectations and to their personality types. Study number three examines the expectations with a dyadic approach by examining both the B2B buyers and B2B sellers’ expectations for initial sales meetings and how their expectations align. Thirdly, the salespeople’s Acta Wasaensia 15 preferred leadership is assessed in uncertain business environment and an attempt has been made to find the practices which best support the salespeople’s work when striving to fulfill the buyers’ needs. With these three elements, this dissertation attempts to extend the understanding of how to lead B2B buyer- seller interactions and B2B customers and salespeople in today’s business encounters (see Fig. 1). Furthermore, this dissertation combines the findings of these themes to a model (see Fig. 3). Figure 1. The framework of the dissertation The six published studies of this dissertation relate to the abovementioned questions by addressing the research problem. The core of the study is the MBTI personality theory, however, in study two, the theory is not based on the MBTI and in study three, the theory is based on expectancy disconfirmation theory. The aim of this dissertation is to find out beyond the business buyers expectations the way to interact as salespeople to be able to form relational value with the buyers in buyer-seller interactions in a demanding relational B2B selling context. Interactions here means both the buyers’ pre-buying phase and the actual buyer- seller meetings. Further, the aim is also to find new perspectives on sales leadership theory because there has been little research in to sales leadership from the followers’ point of view. This study adds to the findings from the buyers’ side and also the salespeople’s preferred leadership expectations and combines these expectations from both sides giving practical insights to an individual level sales leadership which aims to fulfill first the sellers’ needs and later, sellers are able to fulfill the customers’ needs. 16 Acta Wasaensia Based on business buyers’ expectations and salespeople’s leadership expectations, the study will present an individual level model of salespeople fulfilling the buyers’ expectations. These same elements are seen to be utilized in sales leaders’ work when they are leading their salespeople on an individual level. The word expectation, in the study, means the business buyers’ appraisals regarding their interactions with the salespeople and also the salespeople’s appraisals of buyer-seller meetings. The salespeople’s expectations of sales leadership illustrates salespeople’s appraisals of their supervisors to be able to fulfill the customers’ relational expectations in the current uncertain and complex business environment. 1.4 Research context The major part of selling models used all around the world have been created in the US and also the empirical data used on research has been taken from the American business environment. It is claimed that buying and selling concepts in Europe differ from US concepts due to the more domestic way of selling and buying in US. In Europe the cultural aspects also influence buying and selling. Unfortunately, compared to the US economy, sales research in Europe is scarce. In Finland the sales profession has suffered due to the under-appreciation of the role of selling and during the years 2000-2012 only three thesis were related to sales. (Korpela, 2015.) Later, two new sales related thesis’ were published by Jokiniemi (2013) and Korpela (2015), in which the focus was on B2B sales. It may say that all the studies on B2B sales will increase the knowledge of European level B2B selling and buying. Nevertheless, the statistics from Finland show that sales skills and managing the customer’s interphases are the core competencies necessary to survive in the demands of globalization and increased competition. In particular, the skills needed to develop long-term collaborations, both nationally and internationally, are seen to be strategic competencies in the near future (Paasi & Wessberg, 2015). It is important to understand that often the value means something else to the customer other than just the initial product. The value may be created via additional services, for example, trustworthiness, of the buying experience or of the business ideas shared in B2B interactions. The value may also be defined as innovative activities originated and developed by both the customer and the whole sales organization. As in the rest of the global market the market trends in Finland are changing and the needs of customers are changing rapidly. Finnish companies have had Acta Wasaensia 17 problems answering customers’ needs and the lack of sales competencies has been seen to be the problem. It is recommended that Finnish companies should focus on relationship building and on interactions with customers to be able to get engage in deeper dialogues with their customers. (Suomalaisen teollisuuden tulevaisuus, 2014). In Finland the development of products and high technology orientation have affected the aspects appreciated in education and also in business. Often it has been thought that good products will sell themselves. Later, it was recognized that marketing is also necessary. However, there are sales activities to be done so that the companies know how to form value with customers in national and global markets. Additionally, digital opportunities during the buyer pre-buying phase should be seen as an advantage to Finnish companies because this opportunity also helps many small and medium sized companies to grow in international business cost-effectively. These facts illustrate why this study is also important for the Finnish sales organizations who are conducting business on national and international levels. Studies in this thesis support demanding Finnish sales practices by suggesting an individual level model to lead buyer-seller interactions and to fulfill the buyers’ individual needs in context of sales leadership. The empirical data is collected from national and international companies in Finland. All of the sales companies studied offer knowledge-intensive business service solutions to other businesses. These companies assisted the funded research project through a financial support and allowing studies of their salespeople and new customers which included both professional buyers and business buyers. The buying organizations in this dissertation include, for example, logistics, retail, professional services and food industries. The salespeople provided access to the buyers by referring the researcher to the corresponding buyer contact person. Later, the researcher asked for additional information about who else participated on the purchasing and buying team. After receiving more information about the buyers’ buying teams, these team members were contacted and interviewed. The buyers’ roles were divided into two distinct types: business buyers (business managers/executives) and professional buyers (purchasing/ sourcing managers). Studies two, three, four and five studied these abovementioned buyers. In studies three and six, the salespeople studied were the ones who worked at these sales organizations and who attended to this research project as supporting partners. 18 Acta Wasaensia 1.5 Structure of the dissertation This dissertation consists of an introduction and six published studies (see Table 1). The introduction includes the sections for research gaps, the theoretical background, the methodology, summaries of the studies, overall conclusions and discussion. The aim of the published studies is to fulfill the research gaps on B2B selling and the leadership area and to address the research problem. Additionally, this study aims to provide academic knowledge for companies so they are able to adjust their activities to fit buyers’ needs and expectations according to buyer-seller interactions. Studies one, two, four and six are single authored, and study five is co-authored with professor Routamaa. Hautamäki is the first author and had a major role in writing the theory and findings. Additionally, the data was collected independently by the author. Study three is co-authored with Dr. Kaski, Professor Pullins and doctoral candidate Kock. In study three Hautamäki was responsible for writing the theory and collecting the majority of the data used. Data analyzing was done together with Kaski and Kock and the emerging themes were set up with the whole co-author group. After reviewers’ comments, all the co-authors took their parts contributed to the development of the study taking into account the editors’ comments. Furthermore, compared to many other studies of personality, measured by MBTI, in these studies the author has interviewed and confirmed every respondents real MBTI-profile in a face-to-face meeting and additionally interviewed the respondents at a different time. This brings more validity to the process of analysis in mixed-method research. Because there are very few studies relating to the buyers’ side of this challenging phenomenon, this research studied first the customers’ expectations. Since this study does not focus on the contribution of the buyers’ side, the results from customers’ were used to increase understanding of how the initial salesperson should initiate relationships to create value experiences with the customer. Additionally, the expectations of the B2B seller of sales meetings was covered in study three. The contribution is focused towards sales literature for a basis for future research on relational selling and so that the sales organizations could adjust their activities to better address customers’ expectations. Because there are fewer studies about the customers’ side in this recently changed business environment, the decision to start the study from the customers’ side was obvious. There is also a need for studies of sales leadership which take into account this demanding business environment as well as the changed leadership needs of salespeople. This topic is covered in study six. Acta Wasaensia 19 T ab le 1 . Su m m ar y of c ha ra ct er is ti cs o f a rt ic le s in cl ud ed in th e di ss er ta ti on St ud y 1 St ud y 2 St ud y 3 St ud y 4 St ud y 5 St ud y 6 Fo cu s Le ad in g bu ye r- se lle r in te ra ct io ns w it h te rm s of T F- le ad er sh ip a nd M B TI th eo ry B us in es s bu ye rs ’ ex pe ct at io ns B uy er s an d se lle rs ex pe ct at io ns fo r an in it ia l s al es m ee ti ng B uy er s’ p re -b uy in g ph as e fr om th ei r pe rs on al it y pe rs pe ct iv e B uy er s’ p er so na lit ie s an d th ei r pr ef er re d be ha vi or o f s el le rs in m ee ti ng s Sa le sp eo pl e’ s pr ef er re d le ad er sh ip a ct iv it ie s in co m pl ex b us in es s en vi ro nm en t R es ea rc h st ra te gy C on ce pt ua l s tu dy D es cr ip ti ve c as e st ud y D es cr ip ti ve c as e st ud y M ix ed -m et ho d ca se st ud y M ix ed -m et ho d ca se st ud y M ix ed -m et ho d ca se s tu dy R es ea rc h co nt ex t B uy er -s el le r in te ra ct io ns B uy er -s el le r in te ra ct io ns a nd bu ye rs ’ pr ef er re d sa le s ac ti on s B uy er -S el le r in it al sa le s m ee ti ng s an d bo th p ar ti es ex pe ct at io ns B uy er -s el le r in te ra ct io ns a nd bu ye rs ’ p re fe rr ed sa le s ac ti on s fr om pe rs on al it y pe rs pe ct iv e B uy er s’ e xp ec ta ti on s fr om p er so na lit y pe rs pe ct iv e to m ee ti ng s Se lle rs ’ a pp ra is al s to th ei r m an ag er s co nc er ni ng th e le ad er sh ip D at a co lle ct io n m et ho ds B as ed o n ea rl ie r lit er at ur e Se m i- st ru ct ur ed in te rv ie w s, th em at ic an al ys is D ya di c in -d ep th in te rv ie w s, em er gi ng th em es an al ys is M B TI , s em i- st ru ct ur ed in te rv ie w s, in te rp re ti ve an al ys is M B TI , s em i- st ru ct ur ed in te rv ie w s, in te rp re ti ve a na ly si s M B TI , s em i- st ru ct ur ed in te rv ie w s, th em at ic an al ys is B uy in g pr oc es s ph as e Pr e- re la ti on al p ha se an d bu ye r- se lle r in te ra ct io ns E xp ec ta ti on s to m ee ti ng s E xp ec ta ti on s to m ee ti ng s E xp ec ta ti on s to pr e- bu yi ng p ha se Pe rs on al it y ex pe ct at io ns to m ee ti ng s E xp ec ta ti on s to b uy er - se lle r in te ra ct io ns Sa m pl e - 17 b us in es s bu ye rs 12 s al es pe op le a nd 12 b uy er s 21 b us in es s bu ye rs 20 p ro fe ss io na l bu si ne ss b uy er s an d 51 s al es pe op le 16 s al es pe op le 20 Acta Wasaensia 2 BACKGROUND THEORIES OF THE DISSERTATION In this chapter the personality theory of MBTI and the transformational leadership theory are briefly presented. The focus is to show the connection between the theories chosen. At the end of this chapter, there are studies which relate to the chosen theories. Because the demanding B2B selling and buyer- seller interactions are the focus of this dissertation, this chapter also clarifies the connection with sales literature, personality theories and TF-leadership. 2.1 Personality theory This study uses personality theory of MBTI to illustrate the expectations and needs in the customers’ pre-buying phase and in the initial buyer-seller interactions. MBTI is a dynamic measure of personality and has a wide-ranging theory behind the measurement. As the focus in this study is the buyer-seller interactions, these interactions are studied in the perspective of personality and leadership. MBTI is one of the most used tools to define personality and leadership. For this research the MBTI was selected because it is an ideal method with which to study this complex phenomenon and because, lately, it has been used largely on leadership studies (Brown & Reilly, 2009; Carroll, 2010; Hautala, 2008; Müller & Turner, 2010). There are many definitions of personality and it is defined, for example, as a unique aspect of behavior or basically as an essence of man. Allport (1937: 48) has said that “personality is what man really is”. In these definitions it is suggested that personality is a part of an individual which most represents him or her as an individual human being. This study is based on a personality theory which may be defined as a set of assumptions which are relevant to human behavior added, as in this dissertation, with empirical definitions of behaviour. Commonly, in personality theory, the psychological environment is seen to determine the individuals’ manner and how (s)he responds. Personality theory, of all the psychological concepts, is unique by the perspective that it defines the concept of self. For personality theorists the one important aspect is how the person perceives himself and how the self is viewed as a person. These elements describe the key points in individuals’ lives. During the history of psychology, many psychologists ignored the influence of motivation. Nevertheless, personality theorists saw motivation to be important point for understanding human behavior. (Hall & Lindzey, 1957.) Acta Wasaensia 21 According to Hall and Lindzey (1957) personality theories may be divided into trait, cognitive and motivational units of personality. The science of personality has been studied from three different research traditions of observation which are clinical, correlational and experimental. A clinical approach is one of the approaches which individuals study systematically and in-depth and where French physician Jean Charcot was interested in understanding hysterical patients and started to classify these symptoms. Charcots most famous student was Sigmund Freud who’s psychoanalysis personality theory and therapy methods have influenced millions of people all around the world with his terms of id, ego and superego. For clarification, Freud concentrated mostly on clinical observations rather than theory forming and he also worked with Jung (Pervin, 2003). Interestingly Freud and Jung were not trained in medicine, while the origin of personality theory was based more on medicine and medical practices, they practiced as psychotherapists. Their profession, on a more practical side, affected their recognition of psychological science and many years after their achievement they were acknowledged inside the psychological inner circle. (Hall & Lindzey, 1957.) As Hall and Lindzey (1957) argued, the names of Charcot, Freud, Janet, Jung, McDougall and Stern have a lot to do with the determination of the nature of personality theory. These names have shown the path for many theorists and on which, for example, Gestalt and Stern continued. These theorists focused on unity of behaviour and to the small elements in behaviour. World War II provided an opportunity for personality psychologists to develop assessment and treatment tools for individuals based on grand theories on personality and primary clinical investigations (Pervin, 2003). There has also been an impact on personality theory in experimental psychology in general and on learning theory. This has led to a better understanding of the nature of constructs and later this psychometric tradition shed light on personality difference studies. Prominent theorists include Helmholz, Pavlov, Thordike, Watson and Wundt. The difference between experimentalists and clinicalists is in their inspiration in natural sciences. Where clinicalists focused on clinical findings and their own reconstructions, the experimentalists focused on observations. (Hall & Lindzey, 1957.) The cognitive approach, to which these abovementioned theories belong, is a general empirical approach which includes topics related to how people process information of themselves and of the world around them. From the cognitive theorist view the personality is seen to show the differences in how different individuals are mentally processing the information (Pervin, 2003). 22 Acta Wasaensia The correlational approach emphasizes individual differences between people, whereas the experimental approach sees that all people are general in applied laws (Pervin, 2003). The behaviouristic approach of personality may be seen as the opposite approach to the psychoanalytical approach. The behavioristic approach was defined by Bandura (1986), as the result of behavior in interactions with environmental variables. The environment was seen to shape individuals’ behaviour through learning. While the behavioristic approach is focused on personality functioning enabling only little attention to individual differences, the trait approach focuses on personality differences in depth. Nevertheless, psychoanalytical theory has combined both of these views. Abraham Maslow (1908-1970) was also keen on behaviorism and later he became interested in psychoanalysis. However, he later became critical towards psychoanalytic approaches based on motivational levels. This is why he developed his own theory of the hierarchy of needs. Maslow’s need structure stems from basic biological needs to the more psychological motivations which become important when basic needs are satisfied. (Smith, Nolen-Hoeksema, Susan Fredrickson, & Loftus, 2003.) These personality theorists have been referred to as rebels in their time. They have exaggerated personality theory so that there are two generalizations. These so called rebels were in medical and experimental science areas, so they questioned or disallowed the assumptions accepted by psychologists and it may be said that personality theory has occupied a dissenter role in psychology. Secondly, the orientation on personality theories is functional, because they have been interested in questions which make a difference in the correction of the organism. Because of their roots in history personality theorists have always been broader in scope and more practically oriented than other psychologists. (Hall & Lindzey, 1957.) Therefore, as B2B selling is a practically oriented profession, these personality theories relate well to this area of study. As this dissertation is based on MBTI theory, the reason for choosing this personality theory among other is simple. It has gained a lot of attention recently (see Brandt & Laiho, 2013; Brown & Reilly, 2009; Carroll, 2010) and by this Jung’s (1921) view on personality has recently attracted a lot of attention. It is prospective because Jung (1921) looked ahead to the person’s future development but also retrospective, when taking account of his or her past. Jung’s (1921) statement “the person lives by aims as well as by causes” sets Jung apart from Freud because Jung identifies that there is creative development and a search for fullness and accomplishment. Jung’s (1921) theory is based on psychological types and not on traits, because it is based on dynamic theory of personality. As a dynamic theory it also gives several opportunities for development processes Acta Wasaensia 23 between humans. As compared to Jung’s statement of a person’s aims and causes, the personality exists in relationships between attending parties and a persons’ identity is built during the interactions (Harman, 2003). 2.1.1 Jung’s theory of personality In 1906 Freud and Jung met after Jung had read Freud’s book on Interpretation of Dreams. Their common route was fruitful but short and in 1913 they terminated their business correspondence. After this disagreement Jung proceeded with his theory of psychoanalysis and method of psychotherapy. Carl Jung has been acknowledged to be one of the greatest thinkers and his theory is referred to as psychoanalytic theory because the analysis is based on unconscious processes. Actually the basis for the psychoanalytical theory is that what we think or do is driven by unconscious processes. (Smith et al., 2003.) Jung’s theory as a psychotherapist is unique because he combines the past and the future. In his theory one’s behavior is conditioned by individual and essential history and additionally by man’s aims and desires for the future. He saw that both the past, practicality and future guide our ways. This is also dissimilarity between Freud’s and Jung’s views, while Freud see that there is endless repetition of primitive themes, Jung saw that there is always a creative and constant development, man is searching for completeness and accomplishment. Jung’s views the individual personality as a product of its history (Hall & Lindzey, 1957). When this thesis focuses on new business encounters, it is essential to view the human as an individual with a past in order to understand the buyers. The expectations do not necessarily have anything to do with this initial seller but (s)he is the one to face these expectations which have been developed during the lifetime of the customer and which are unique to that person. Jung referred to the structure of a personality as a psyche which consisted of ego, personal unconscious and its complexities, of the collective unconscious and its architypes, the persona, the anima or animus and the shadow. In addition to these systems there are the attitudes of introversion and extraversion and functions of thinking, feeling, sensing and intuition. However, Jung sees that self means the fully developed personality. In the next chapters these components of Jung’s psyche will be examined more closely. In personality theory the unconscious and conscious, as well as the concept of self, have been separated in research. In Jung’s theory the ego is the conscious mind which is made of perceptions, memories, feeling and thoughts. The ego is the one which is responsible of the human’s feeling of identity and stability. The ego, in Jung’s terms, is the person’s centre of the personality. The personal 24 Acta Wasaensia unconscious is connecting the ego and it consists of experiences which were once conscious but have been forgotten. Personal unconsciousness centres are a group of perceptions, feelings, thoughts and memories which exist in the unconscious mind. (Hall & Lindzey, 1957.) This also differs from personality theories of communication and behavioral style measurements (Manning, Ahearne, & Reece, 2012) because personality theories also take into account the person’s unconsciousness. The collective unconscious is the original part of Jung’s personality theory and it resembles a store to a memory phase of a man’s past. It may also be referred to as a remainder of man’s past and as a natural foundation of the whole structure of the personality. Archetype is a structural component of the collective unconscious and it is a universal idea which contains emotions. Archetypes may be treated almost as separate systems within the personality. These systems are called persona, anima and animus and the shadow. The persona is a mask which the person is wearing in response to the demands of social resolution, tradition and to his own inner archetypal needs. The role is assigned by society, that part that society expects him or her to play in life. The purpose of a mask is to make an impression on others and hide the real nature of the person. Persona is the public personality shown to the world which is different to the private personality which exists behind the social stage. (Hall & Lindzey, 1957.) The persona is also the “face” which the sellers meet when meeting the customers for the first time. Persona develops from the archetype and in this case, the buyers’ persona consists of earlier experiences in social interactions in which the suggested assumption of a social role has served a useful purpose to this buyers’ history. Anima, the feminine architype in man, and animus, the masculine architype in woman and these architypes by Jung (1921) are the products of cultural experiences of a man with a woman and vice versa. The shadow is archetype, which consists of animal dispositions, which typifies the animal side of the man’s nature. It is responsible for the attendance in consciousness and behavior of unpleasant and social reprehensible thoughts and actions. This archetype also gives a strong quality to the personality (Hall & Lindzey, 1957). In Jung’s earlier writings the concept of self was seen to be equal to the psyche or to total personality, but after discovering architypes, self was seen to represent itself through various symbols. The self is like life’s goal to which people strive but where they rarely reach. All archetypes motivate man’s behavior to search for wholeness. The concept of self is Jung’s most important psychological finding. The personality can become fully developed after mid-age, when the person is ready to change the centre of their personality from the conscious ego to the ego Acta Wasaensia 25 which is midway between consciousness and unconsciousness. This midway location is the culmination of self. (Hall & Lindzey, 1957.) A persons development of self is an individual process so the sellers should be able to meet also whole self’s and incomplete self’s. As noted in several studies, good self-awareness, and in Jung’s terms, midway station on self, help us to focus on another person and this has been seen to positively affect job satisfaction (Nielsen et al., 2009). Jung (1921) distinguishes two major attitudes of personality, extraversion and introversion. The extraverted attitude orients a person to the outer, objective world and the introversion attitude to the inner, subjective world. Both of these two opposite attitudes are present but one of the attitudes is dominant and conscious. If the ego is extraverted, the personal unconscious will be introverted. Both of these types are capable of enthusiasm but they show it in a different way. For example, what fills the extravert’s heart flows out of his mouth while introverts’ enthusiasm is something that seals his lips (Jung 1921: 326). Additionally, there are central psychological functions: thinking, feeling, sensing and intuiting. Thinking is intellectual and by thinking it tries to understand the world and self, whilst feeling is the function of value of things which orientates to the subject. Feeling is the subjective function of experiences like anger, happiness and love. Sensing is the reality function which is based on the facts, while intuition is a perception of unconscious processes and contents by expanding models of reality beyond the facts and feelings. A person has all of these functions which are not often similarly well developed. Usually one of these functions is more highly differentiated and the others play a dominant role in consciousness. If this so-called superior, dominating function is prevented from working, the auxiliary function takes its place. The least differentiated function is called inferior function. Inferior function is unconscious and states itself in dreams. All these differentiated functions have equal strength in the personality. Since the complete actualization of the self is impossible, these functions, called also as attitudes represent an ideal aim of where the person wishes to be. (Jung, 1921.) 2.1.2 Myers Briggs personality theory The idea of a psychological type was out of favor in psychology for some decades. Types, temperaments and traits are not seen to suit sophisticated psychology and a part of this may be the practical orientation of personality theorists. Nevertheless, the type has a constitutional and environmental base, because it is not seen to be static since type is dynamic and developmental (Myers, 1992). The purpose in MBTI is to make Jung’s (1921) theory understandable and useful for 26 Acta Wasaensia people in their everyday lives. Perception is the way to become aware of environment, of what happens, of other people and of different things. Judgement is the way to make conclusions of what has been perceived. These are the elements in which people differ (Jung, 1921). MBTI is a measurement which may be identified by a self-report concerned with individual reactions which may be called preferences. These preferences, or their combinations, can be defined by the Myers Briggs Type Indicator and later recognized and used in practice. Further, MBTI is a measurement of a theory by which it is possible to implement theory to practice. So the letters MBTI refers both to the theory and to the measurement. In MBTI the theory postulates dichotomies and, because it is based on theory, it has specific relationships between the scales which lead to sixteen personality types. MBTI is a developmental model and development continues throughout life (Myers & McCaulley, 1985). According to theory, one pole always has the other side which is the opposite preference. The sixteen types are combinations of four letters, for example the most common personality types of the business buyers are ESTJ and ISTJ (Dion et al., 1995; Macdaid, McCaulley, & Kainz, 1995). The main target in MBTI is to identify these four preferences in a person. It is notable, that these preferences are not designed to be a scale to measure trait or behavior. In MBTI the discussion is of a wonted choice between right and left hand options. One might use both hands but most commonly the reaching is done by the hand the person prefers. This is similar if different preferences are compared in MBTI. Often it is assumed to use both poles of each four preferences but most often the first responses happen with the preferred functions or attitudes (Myers & McCaulley, 1985). This is important to salespeople and sales directors as it helps them to understand another person when trying to satisfy their expectations, and also to understand how personality preferences affect buying decisions (see for example Gallén, 2006). Dimensions in MBTI may be divided into processes and attitudes, and each scale, processes and attitudes, presents two opposite preferences. Attitudes refers to extraversion (E) and introversion (I), processes, as mentioned earlier, are perceptions sensing (S) and intuition (N) and processes of judgement are thinking (T) and feeling (F). The last dimension concerns the style to deal with the outside world and the preferences are judging (J) and perceiving (P). Myers and Briggs extended the model of Jung’s with the JP scale, which had been left underdeveloped, although it was implicit in Jung’s model. It is notable that sometimes respondents’ self-reporting affects their beliefs about how they would like to be or, for example, another persons’ beliefs about them or their environmental beliefs. The items in MBTI are transparent and, like always Acta Wasaensia 27 in self-reports, the answers can be falsified although, in counseling situations, 75 percent of the customers agree their reports (Myers & McCaulley, 1985). However, it is important to understand that sometimes one does not know what (s)he prefers or how the answers were affected by some other factors, for example, a change situation. Nevertheless, there are also differences which are not explained by type and also several differences within each personality type (Briggs Myers & Myers, 1993). When type theory is mentioned in this thesis, it refers to Jung’s personality theory as interpreted by Isabel Myers and Katharine Briggs in MBTI (Myers & McCaulley, 1985). MBTI as Myers (1980) has put it, is primarily concerned with valuable differences in people and people with opposite preferences. However, each type has its own strengths and weaknesses. The preferences include four different scales which describe opposite attitudes and processes so that scale E-I describes the focus of ones’ attention on the outer or inner world like in Jung’s (1921) theory. Scale S-N describes the way in which information is perceived or attained, the T-F scale shows how one makes decisions and the J-P scale shows ones’ desired lifestyle. Personality types consist of the eight different preferences and when the MBTI test has been completed and confirmed with a certified coach, this type is his or her “true” type according to MBTI. For example, one of the most common B2B buyer types is ESTJ (Dion et al., 1995). It means that this buyer is extravert (E), who likes to orientate to the outer-world with sensing (S) preference, use thinking (T) when making decisions and who has a judging attitude (J) towards the outer world. In this thesis there are studies which focus on types and on initial preferences but also on cognitive or functionality styles or pairs. When focusing on cognitive style, in this study, the focus is on the middle MBTI letters. In the middle letters, one will be the favorite process and in type theory is called as a dominant or first function. The other letter is called a second or auxiliary function. Both of these letters are needed to interact effectively with others, the first function takes the lead and the second one helps. For example ESTJ type, the dominant function is T and the auxiliary is S. Type theory shows that a persons’ greatest strengths come from one’s favoured functions and this is why it is important to trust these functions and develop them (Myers, 1992). The dynamics in MBTI can be seen in preferences where the aim is to group people into types where they belong. However, this means that one uses all the preferences at a different time and not at the same time. In most cases one uses the dominant preference . This may also be seen when asked to choose ones’ own preferences where most people are able to choose a preference (Myers, 1992). This also strengthens the validity of this research, because MBTI is used to 28 Acta Wasaensia explain the buyers’ preferred expectations and actions and, additionally, the buyers have been measured with MBTI. The letters in MBTI indicate the direction of the preference and when type is self- reported, there are numbers which indicate the strength of the initial preference. The strength in MBTI shows how strongly the preference has been reported. MBTI shows that all the types are valuable and necessary with their own strengths and weaknesses. MBTI may be used in education to, for example, develop different teaching methods to meet different learning needs, in counselling and career guidance to give direction to a profiled persons’ life and in teamwork, in leadership and followership to improve collaboration and communication with others. MBTI is appropriate to use with adults and it is translated and developed in a number of different countries. (Myers & McCaulley, 1985.) The theory behind the MBTI is to enable us to expect certain differences in specific people and to interact with them more constructively than would be possible without the understanding of the MBTI theory. The type theory illustrates that children are born preferring some functions over others. Environment plays a large role in MBTI, especially when thinking about the development of the type. It may raise the development or discourage the natural type preference. Development in type is seen to be a lifelong process, in youth the main task is to develop the dominant and the second functions and in mid-life people usually gain greater command of the less preferred third and fourth functions. (Myers & McCaulley, 1985.) Jung’s (1921) theory identifies youth as being a time for specialization and from the early forties the radical trans valuation which is seen via new interests which are more cultural begins. Middle aged people become more introverted and less impulsive and they value social, civil and philosophical symbols. (S)he may be seen to transform to a spiritual man, as Jung (1921) has termed this situation. This is seen to be the most fundamental event in a persons’ life. Myers and Briggs used Jung’s ideas in their dynamic representation of the MBTI types. They assumed that each type has one dominant function which is the leading function. In addition to the dominant function the person will develop his or her secondary or auxiliary function to provide balance between extraversion and introversion. Interestingly the extraverts show their dominant function to the outer world but introverts show their second best function by saving the dominant function to the inner-world usage (Briggs Myers & Myers, 1993). See the characteristics associated with each type in