An Idea on How to Heighten the Competitive Spirits of Sales Associates

  • Jeffrey Yi-Lin ForrestEmail author
Part of the IFSR International Series in Systems Science and Systems Engineering book series (IFSR, volume 32)


This chapter, based on Forrest and McCarthy (Pennsylvania Economic Association 2017 conference proceedings, pp 52–64, 2017), looks at the problem of sales associates’ compensation (or sales force compensation).


  1. Antonietti, R.: Human capital, sport performance, and salary determination of professional athletes. SSRN Electron. J. (2006).
  2. Arai, A., Ko, Y.J., Ross, S.: Branding athletes: exploration and conceptualization of athlete brand image. Sport Manag. Rev. 17(2), 97–106 (2014)CrossRefGoogle Scholar
  3. Bagnoli, M., Watts, S.G.: Delegating disclosure and production choices. Account. Rev. 90(3), 835–857 (2015)CrossRefGoogle Scholar
  4. Basu, A., Lal, R., Srinivasan, V., Staelin, R.: Salesforce compensation plans: an agency theoretic perspective. Mark. Sci. 4, 267–291 (1985)CrossRefGoogle Scholar
  5. Belu, M., Caragin, A.R.: Strategies of entering new markets. Rom. Econ. J. 11(27), 1–16 (2008)Google Scholar
  6. Chan, T.Y., Li, J., Piece, L.: Compensation and peer effects in competing sales teams. Manage. Sci. 60(8), 1965–1984 (2014a)CrossRefGoogle Scholar
  7. Chan, T.Y., Li, J., Pierce, L.: Learning from peers: knowledge transfer and sales force productivity growth. Mark. Sci. 33(4), 463–484 (2014b)CrossRefGoogle Scholar
  8. Chang, Y.K., Chen, Y.L., Chou, R.K., Huang, T.H.: Corporate governance, product market competition and dynamic capital structure. Int. Rev. Econ. Finance 38, 44–55 (2015)CrossRefGoogle Scholar
  9. Chung, D.J., Steenburgh, T., Sudhir, K.: Do bonuses enhance sales productivity? A dynamic structural analysis of bonus-based compensation plans. Mark. Sci. 33(2), 165–187 (2013)CrossRefGoogle Scholar
  10. Daljord, Ø., Misra, S., Nair, H.S.: Homogeneous contracts for heterogeneous agents: aligning sales force composition and compensation. J. Mark. Res. 53(2), 161–182 (2016)CrossRefGoogle Scholar
  11. Debruyne, M., Reibstein, D.J.: Competitor see, competitor do: incumbent entry in new market niches. Mark. Sci. 24(1), 55–66 (2005)CrossRefGoogle Scholar
  12. Fizel, J., McNeil, C., Smaby, T.: Athlete endorsement contracts: the impact of conventional stars. Int. Adv. Econ. Res. 14(2), 247–256 (2008)CrossRefGoogle Scholar
  13. Forrest, J.Y.L., Amatucci, F., Markman, G.D.: Dynamics of the firm population within an established market. In: Proceedings of the 48th annual meeting of the Decision Sciences Institute, Washington, DC, 18–20 Nov 2017Google Scholar
  14. Forrest, J.Y.L., McCarthy, L.: Sales associates’ compensations: a game theoretic approach. In: Pennsylvania Economic Association 2017 conference proceedings, pp 52–64Google Scholar
  15. Forrest, J.Y.L., Orvis, B.: Principles of management efficiency and organizational inefficiency. Int. J. Cybern. Syst. Manag. Sci. 45(8), 1308–1322 (2016)CrossRefGoogle Scholar
  16. Frenzen, H., Hansen, A.K., Krafft, M., Mantrala, M.K., Schmidt, S.: Delegation of pricing authority to the sales force: an agency-theoretic perspective of its determinants and impact on performance. Int. J. Res. Mark. 27(1), 58–68 (2010)CrossRefGoogle Scholar
  17. Guo, W.C., Lai, F.C., Liu, C.J., Mai, C.C.: Symbiotic production and downstream market competition. Atlantic Econ. J. 40(3), 329–340 (2012)CrossRefGoogle Scholar
  18. Hauser, J.R., Shugan, S.M.: Defensive marketing strategies. Mark. Sci. 2(4), 319–360 (1983)CrossRefGoogle Scholar
  19. Inderst, R., Ottaviani, M.: Misselling through agents. Am. Econ. Rev. 99(3), 883–908 (2009)CrossRefGoogle Scholar
  20. Jane, W.J.: Peer effects and individual performance. J. Sports Econ. 16(5), 531–539 (2015)CrossRefGoogle Scholar
  21. Joseph, K., Thevaranjan, A.: Monitoring and incentives in sales organizations: an agency-theoretic perspective. Mark. Sci. 17(2), 107–123 (1998)CrossRefGoogle Scholar
  22. Kockesen, L.: Unobservable contracts as precommitments. Econ. Theor. 31(3), 539–552 (2007)MathSciNetCrossRefGoogle Scholar
  23. Kockesen, L., Ok, E.: Strategic delegation by unobservable incentive contracts. Rev. Econ. Stud. 71(2), 397–424 (2004)MathSciNetCrossRefGoogle Scholar
  24. Kopalle, P.K., Lehmann, D.R.: Setting quality expectations when entering a market: what should the promise be? Mark. Sci. 25(1), 8–24 (2006)CrossRefGoogle Scholar
  25. Kräkel, M., Schöttner, A.: Optimal sales force compensation. J. Econ. Behav. Organ. 126, 179–195 (2016)CrossRefGoogle Scholar
  26. Kumar, K.R., Sudharshan, D.: Defensive marketing strategies: an equilibrium analysis based on decoupled response function models. Manage. Sci. 34(7), 805–815 (1988)MathSciNetCrossRefGoogle Scholar
  27. Lal, R., Srinivasan, V.: Compensation plans for single- and multi-product salesforces: an application of the Holmstrom-Milgrom model. Manage. Sci. 39(7), 777–793 (1993)CrossRefGoogle Scholar
  28. Lo, D., Ghosh, M., Lafontaine, F.: The incentive and selection roles of sales force compensation contracts. J. Mark. Res. 48(4), 781–798 (2011)CrossRefGoogle Scholar
  29. Misra, S., Nair, H.S.: A structural model of sales-force compensation dynamics: estimation and field implementation. Quant. Mark. Econ. 9(3), 211–257 (2011)CrossRefGoogle Scholar
  30. Rosca, V.: The coach-athlete communication process: towards a better human resources management in sport. Manag. Res. Pract. 2(3), 275–283 (2010)Google Scholar
  31. Sheth, J.N., Sharma, A.: The impact of the product to service shift in industrial markets and the evolution of the sales organization. Ind. Mark. Manage. 37(3), 260–269 (2008)CrossRefGoogle Scholar
  32. Siebert, R.: Entering new markets in the presence of competition: price discrimination versus cannibalization. J. Econ. Manag. Strat. 24(2), 369–389 (2015)CrossRefGoogle Scholar
  33. Tiago, T., Tiago, F., Faria, S.D., Couto, J.P.: Who is the better player? Off-field battle on Facebook and Twitter. Bus. Horiz. 59(2), 175–183 (2016)CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  1. 1.School of BusinessSlippery Rock University School of BusinessSlippery RockUSA

Personalised recommendations