Caballero, Marjorie J.
May 1988
Journal of Personal Selling & Sales Management;May88, Vol. 8 Issue 1, p55
Academic Journal
The article focuses on the relative effectiveness of merchandise incentives versus travel/entertainment and cash awards for motivating sales force performance. A recent study conducted jointly by the American Productivity Center (APC) and the American Compensation Association found that there is a revolution going on in almost every industry. Organizations are implementing various incentive plans -- more particularly, pay-for-performance systems -- in addition to their existing compensation plans. In fact, 67 percent of the 1,600 organizations that responded to the APC study have some form of reward system in addition to their compensation plans. Further, there is evidence that the use of incentives is steadily increasing. Although cash incentives are by far the most popular form, the use of cash is surrounded by controversy. While most people say they prefer money to other types of rewards, many organizations feel they get more for their money through non-cash awards. Although much can be said in favor of sales force contests, these contests can have negative side effects.


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