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The Effects of Quota Frequency : Sales Performance and Product Focus

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.

Ketersediaan

Informasi Detail

Judul Seri

MANAGEMENT SCIENCE; Vol.67 No.4 April 2021

No. Panggil

-

Penerbit

: .,

Deskripsi Fisik

p. 2151 - 2170

Bahasa

English

ISBN/ISSN

-

Klasifikasi

-

Tipe Isi

-

Tipe Media

-

Tipe Pembawa

-

Edisi

-

Subjek

FIELD EXPERIMENT
GOAL
SALES FORCE COMPENSATION
QUOTA
PRODUCT FOCUS

Info Detail Spesifik

https://doi.org/10.1287/mnsc.2020.3648

Pernyataan Tanggungjawab

Doug J. Chung, Das Narayandas, Dongkyu Chang

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