Post by arfanho7 on Feb 25, 2024 5:47:51 GMT 2
Findings from this study provide guidance to firms on how to use conditional and unconditional compensation to enhance sales rep productivity and better manage the achievement of sales forecasts. Author Abstract We conduct a field experiment in which we vary the sales force compensation scheme at an Asian enterprise that sells consumer durable goods.
With variation generated by the experimental treatments we model salesforce performance to identify the effectiveness of various forms of conditional and unconditional compensation. We account for salesperson heterogeneity by using a hierarchical Bayesian framework to estimate our model. We find Ukraine Mobile Number List conditional compensation in the form of quota bonus incentives to improve performance. We find no evidence that effectiveness differs between a quota bonus plan and punitive bonus plan framed as a penalty for not achieving quota.
We find unconditional compensation in the form of reciprocity to be effective at improving sales force performance only when given as a delayed reward when immediate sales force performance decreases.t of compensation on performance across salespeople unconditional compensation is more effective for salespeople with high intrinsic ability whereas conditional compensation is equally effective across all types of salespeople. Lastly we find seasonality to significantly influence sales volumes for low ability but not so much for high ability salespeople.
With variation generated by the experimental treatments we model salesforce performance to identify the effectiveness of various forms of conditional and unconditional compensation. We account for salesperson heterogeneity by using a hierarchical Bayesian framework to estimate our model. We find Ukraine Mobile Number List conditional compensation in the form of quota bonus incentives to improve performance. We find no evidence that effectiveness differs between a quota bonus plan and punitive bonus plan framed as a penalty for not achieving quota.
We find unconditional compensation in the form of reciprocity to be effective at improving sales force performance only when given as a delayed reward when immediate sales force performance decreases.t of compensation on performance across salespeople unconditional compensation is more effective for salespeople with high intrinsic ability whereas conditional compensation is equally effective across all types of salespeople. Lastly we find seasonality to significantly influence sales volumes for low ability but not so much for high ability salespeople.