Page 460 - MARSIUM'21 COMP OF PAPER

Muhamad Rifqi Zafran Bin Abdul Hakim (2022)

2.2 HYPHOTESIS DEVELOPMENT
2.2.1 Sales Volume Fluctuations
A factor that can affect the sales volume fluctuation is the changing rate of shipping. The shipping sector is exposed to several
threats. For example, freight prices are influenced mainly by demand and supply (Korsfur, 2009), and extensive sales fluctuation in the
market influences sales performance (Nilsen and Dønvik in 2010). Additionally, as (Korsfur 2009) notes, freight prices seem to be
more fluctuating in "tight and robust markets." The issue occurs because the demand is changing and is related to the fact that it takes
such a long time for the shipment being ordered to be delivered. Furthermore, sales fluctuations have been discovered to contribute to
sales performance. Hence the Consumer Sentiment Index has been proved to be a reliable predictor of long-term sales (see, e.g.,
Allenby, Jen, and Leone, 1996; Katona, 1975). Sales fluctuation analysis by the team may provide management with a clear sales
performance of employees (Christoph & Roser, 2020).

H1: Sales volume fluctuation has a significant influence on sales performance.

2.2.2 Training and Development
As a result, the training and development were implemented as a management reform to address and resolve sales performance
difficulties that businesses faced (Sharif, 2002). Additionally, it educates workers on how to perform their jobs most effectively and
efficiently to increase sales performance (Ashok Kumar, 2013). Increased productivity and sales performance can be related to the
Training and Development program (Zekiri & Sattar Niazi, 2011). To maximize the effectiveness of training and development efforts,
training must identify and concentrate on areas where they specialize in addressing issues (Fu et al., 2013). According to (Sim 2002),
training and development help to achieve organizational goals and salespeople performance. Training and development lead to increase
efficiency while creating more positive evaluations toward sales performance (Hashim, 2014). Training and development lead to
increase efficiency while creating more positive evaluations toward sales performance (Hashim, 2014).

H2: The training and Development factor significantly influences sales performance.

2.2.3 Commission and Incentive
Commissions are used as a motivator for sales representatives, and as a result, salespeople focus increasing interest in task
completion and achievement of quantitative sales performance (Fu et al., 2013). Commission based on (Armstrong 2003), is meant to
serve as an incentive, a reward, and a way of recognizing performance success. Commissions and incentives are changing benefits
depending on sales performance (Henrik Seglund & Peder, 2012). Commissions are the most often used method of encouraging
salespeople to improve their performance since, in fact, they motivate workers to participate in even more selling activities (such as
completing transactions) that result in higher commissions (Henrik Seglund & Peder, 2012). The strong connection involving sales
performance and commission assumes that individuals may consider increases in pay as a reward for contributing toward organizational
success (Ogbonnaya et al., 2017).

H3: Commission and Incentive factors have a significant influence on sales performance.

2.2.4 Planning of Sales Activity

Strategic sales planning will help company owners take a long-term view to increasing sales performance by providing the framework
for planning (Robinson, 2002). However, the most specific aspects of planning are the customer's geographical location, the number of
salespeople in the market, and the customer's interest in the service (Velic et al., 2012). According to (Hofer 2008), examined on
advantages of advance planning and determined that formal planning had a likely positive influence on sales performance. Sales planning
is critical because sales drive the firm, and without effective sales planning, businesses would struggle to operate effectively and meet
demand or sales performance (Heikkilä & Haapasalo, 2017). The impact of structured strategic planning has been linked to the
relationship that such a process has with sales performance (Gibson & Cassar, 2005).

H4: Planning of sales activity factor has a significant influence on sales performance.

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