Variable Compensation and Salesperson Health

Habel, Johannes; Alavi, Sascha; Linsenmayer, Kim

doi:10.1177/0022242921993195

Cited by 61 publications

(40 citation statements)

References 78 publications

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“…Combining the DID analysis with mediator analysis, Habel, Alavi, and Linsenmayer (2021) show that the direct effect of the treatment (drop in variable compensation share) on sales performance is significant and negative, and that the indirect effect of the treatment on sales performance via sick days is positive and significant. The mediator analysis suggests that a higher variable compensation share is associated with enhanced sales performance but also with more sick days, which, in turn, reduce the gains to sales performance.…”

Section: Mechanism: Why Does X Cause Y To Change?mentioning

confidence: 97%

Conducting Research in Marketing with Quasi-Experiments

Goldfarb¹,

Tucker²,

Wang³

2022

Journal of Marketing

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This paper aims to broaden the understanding of quasi-experimental methods among marketing scholars and those who read their work by describing the underlying logic and set of actions that make their work convincing. The purpose of quasi-experimental methods is, in the absence of experimental variation, to determine the presence of a causal relationship. First, the paper explores how to identify settings and data where it is interesting to understand whether an action causally affects a marketing outcome. Second, the paper outlines how to structure an empirical strategy that allows the author to identify a causal empirical relationship. The paper details the application of various methods to identify how an action affects an outcome in marketing, including difference-in-differences, regression discontinuity, instrumental variables, propensity score matching, synthetic control, and selection bias correction. The paper emphasizes the importance of clearly communicating the identifying assumptions underlying the assertion of causality. Last, the paper explains how exploring the behavioral mechanism—whether individual, organizational, or market-level— can actually reinforce arguments of causality.

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Section: Mechanism: Why Does X Cause Y To Change?mentioning

confidence: 97%

Conducting Research in Marketing with Quasi-Experiments

Goldfarb¹,

Tucker²,

Wang³

2022

Journal of Marketing

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“…Compensation plans are important and powerful mechanisms for influencing salespeople's behavior, sales, and profitability (Lopez et al 2006;Patil and Syam 2018). Salespeople's compensation often comprises both fixed and variable elements that salespeople can achieve by fulfilling specific, incentivized company goals (Habel et al 2021). Typically, salespeople are rewarded with incentives if they achieve revenue or profit goals (e.g., Joseph and Thevaranjan 1998).…”

Section: Customer-oriented Salespeople's Value Claiming and Profit-re...mentioning

confidence: 99%

Customer-oriented salespeople’s value creation and claiming in price negotiations

Kassemeier

Alavi²,

Habel

et al. 2022

J. of the Acad. Mark. Sci.

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Although customer orientation is widely endorsed as a crucial salesperson characteristic, little is known about its effect in price negotiations with customers. This study rectifies this omission and argues for its ambiguous effects. While customer-oriented salespeople create value for customers that enables them to reduce price concessions, they may overly focus on customers’ needs and, in doing so, hesitate to defend against such requests. Results of two quantitative studies and one preliminary qualitative study reveal that customer-oriented salespeople do not unconditionally benefit from their created value in price negotiations with customers. That is, salespeople effectively leverage their created value to negotiate prices with customers only if their sales managers instill confidence that high prices are justified. Furthermore, we find that profit-related incentives reduce undesired consequences of salespeople’s customer orientation in price negotiations.

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“…If service incentives are high and thus incentives strongly depend on the selling of services, salespeople should perceive their compensation increasingly at risk while selling complex service innovations. They should thus perceive progressive performance pressure in these situations (Habel et al, 2021), harming their problem-solving behavior. We thus propose: H1 The relationship between salespeople's share of variable compensation and salespeople's problem-solving behavior assumes an inverse u-shape if service incentives are strongly pronounced.…”

Section: The Effect Of Sales Incentives On Problem Solving Behaviormentioning

confidence: 99%