TITLE

THE ANTECEDENTS OF DOUBLE COMPENSATION IN CONCURRENT CHANNEL SYSTEMS IN BUSINESS-TO-BUSINESS MARKETS

AUTHOR(S)
Sa Vinhas, Alberto; Anderson, Erin
PUB. DATE
March 2008
SOURCE
Journal of Personal Selling & Sales Management;Spring2008, Vol. 28 Issue 2, p133
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
We look at a channel compensation strategy frequently adopted by business-to-business manufacturers that use their own channels and independent entities simultaneously to sell their products in a given territory: compensating both channels (double compensation) for a sale when both channels interacted with the customer in that sale (independently of who gets the order). Using original data from prominent manufacturers operating in competitive markets worldwide, we present an exploratory investigation into the determinants of usage of double compensation. We show that manufacturers sacrifice short-term profits (by double compensation) when the expected costs associated with failing to compensate a channel that has responsibility for a sale increase. We identify such circumstances.
ACCESSION #
31884931

 

Related Articles

  • B2B Salespeople Can Survive If They Reimagine Their Roles. Narus, James A. // Harvard Business Review Digital Articles;4/17/2015, p2 

    The article discusses a study on the need for businesses to transform their business to business (b2b) sales models and salespeople by mapping the customer buying process while rethinking how to attract and retain them, evaluating digital marketing costs, and making sales people evolve.

  • Bottom-Line Selling. Malcolm, Jack // Bottom-Line Selling;1/22/2013, p1 

    In Bottom-Line Selling, sales consultant Jack Malcolm stresses that just knowing a customer�s needs is not enough for today�s sales professionals. Instead, they must understand their customers, their strategic goals, and their key drivers in order to win their business. According to...

  • Group influences of selling teams on industrial salespeople's cross-selling behavior. Schmitz, Christian // Journal of the Academy of Marketing Science;Jan2013, Vol. 41 Issue 1, p55 

    Cross-selling offers tremendous benefits for both vendors and customers. However, up to 75% of all cross-selling initiatives fail, usually for sales force-related reasons. Yet prior research has largely ignored the role of salespeople in the field of cross-selling. Using a...

  • Marketing Briefs.  // Marketing News;3/14/88, Vol. 22 Issue 6, p19 

    The article reports on the $640 average cost of a business-to-business sales call in Europe. Based on a survey conducted by Laboratory of Advertising Research on 699 sales executives in 10 European countries, selling costs ranged from $128.18 in Ireland to about $1,440 in Denmark. Salespeople...

  • BUYER-SELLER INTERACTIONS IN MATURE INDUSTRIAL MARKETS: BLURRING THE RELATIONAL-TRANSACTIONAL SELLING DICHOTOMY. Geiger, Susi; Finch, John // Journal of Personal Selling & Sales Management;Summer2011, Vol. 31 Issue 3, p255 

    Sales practitioners continue to come to terms with the selling conditions of mature consumer and business markets. Mature markets display signs such as cost-focused competition, similarity in the perceived functionality of offerings, and multiple suppliers vying for highly knowledgeable and...

  • AN EXPLORATORY STUDY OF SOCIAL MEDIA IN BUSINESS-TO-BUSINESS SELLING: SALESPERSON CHARACTERISTICS, ACTIVITIES AND PERFORMANCE. SCHULTZ, ROBERTA J.; SCHWEPKER, CHARLES H.; GOOD, DAVID J. // Marketing Management Journal;Fall2012, Vol. 22 Issue 2, p76 

    Despite the evolution of social media and its increasingly significant impact on the marketing environment, research examining how social media relates to the critical area of sales is lacking. To create an improved framework of the strategic usage of social media, this paper presents a profile...

  • Sales compensation plans -- One size does not fit all. Ryals, Lynette J.; Rogers, Beth // Journal of Targeting, Measurement & Analysis for Marketing;Jul2005, Vol. 13 Issue 4, p354 

    This paper considers the state of variable pay compensation plans for sales people in business-to-business markets and, in particular, reviews proposed methods for rewarding key account managers. The authors suggest that, rather than have one instrument to determine rewards for all professionals...

  • CHAPTER THREE: What is selling? Tasso, Kim // Dynamic Practice Development;6/1/2003, p46 

    Chapter 3 of the book "Dynamic Practice Development" is presented. It classifies selling and examines the attributes of a good salesperson. There is a review of why selling varies for the professions and it presents key differences between selling to individuals (private clients -...

  • An Empirical Examination of the Antecedents of Ethical Intentions in Professional Selling. Martin, Craig A. // Journal of Leadership, Accountability & Ethics;Jan2012, Vol. 9 Issue 1, p19 

    A significant amount of research in the past 30 years has focused on the ethical dilemmas facing business-to-business salespeople and the conflicts these salespeople face in making decisions on how best to represent and sell their products. A number of studies have identified the common...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics