The Effects of Quota Frequency: Sales Performance and Product Focus
| Autor: | Dongkyu Chang, Doug J. Chung, Das Narayandas |
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| Rok vydání: | 2021 |
| Předmět: | |
| Zdroj: | Management Science. 67:2151-2170 |
| ISSN: | 1526-5501 0025-1909 |
| DOI: | 10.1287/mnsc.2020.3648 |
| Popis: | This study investigates the comprehensive and multidimensional effects of quota (goal) frequency on sales force performance. The study provides a theory of salespeople’s behavior—aggregate effort and the product-type focus—in response to the temporal length of a sales quota cycle. The theory includes many realistic elements, such as salespeople’s multidimensional effort, heterogeneity in ability, product focus, and forward-looking behavior. We test the theory through a field experiment, varying the sales compensation structure of a major retail chain in Sweden. Consistent with the developed theory, shifting to a temporally frequent quota structure leads to an increase in sales performance for low-performing salespeople by preventing them from giving up in later periods within a quota-evaluation cycle, but to a decrease in sales performance for high-performing salespeople. With quotas set over short time horizons, the high-performing salespeople focus mainly on low-ticket products, resulting in a decrease in both sales volume and the sale of high-ticket products, thus reducing the firm’s profits. This paper was accepted by Eric Anderson, marketing. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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