Sales Quota Determination

1935 ◽  
Vol 8 (3) ◽  
pp. 225
Author(s):  
Donald R. G. Cowan
Keyword(s):  
Sales Quota

scholarly journals How Do Specialized Personal Incentives Enhance Sales Performance? The Benefits of Steady Sales Growth

2018 ◽  
Vol 82 (1) ◽  
pp. 57-73 ◽  
Author(s):  
Ashutosh Patil ◽  
Niladri Syam
Keyword(s):  
High Performance ◽  
Sales Performance ◽  
Performance Goals ◽  
Sales Growth ◽  
Selling Strategies ◽  
Sales Quota ◽  
Achievement Trajectories ◽  
Specific Number

The authors study specialized personal incentives (SPIs), which are cash rewards granted to salespeople for meeting interim performance goals within the regular sales quota period (monthly, quarterly, etc.). Because firms often institute multiple SPIs, the authors are able to investigate whether different sales achievement trajectories have differential impacts on salespeople's period-end sales performance. The authors find that a steadily growing sales trajectory in a sales period is more strongly associated with period-end success than a sales trajectory that is relatively flat early but has a sharp spike later in the period. Furthermore, although salespeople who had high performance in the prior month (i.e., high-performance state) may be able to draw on superior selling strategies (compared with other salespeople), they too experience a boost in sales performance in the current month by earning SPIs. Notably, the authors also find that although earning SPIs benefits all salespeople, there is a U-shaped relationship between a salesperson's performance state and his or her month-end sales performance. For any specific number of SPIs earned, the probability of meeting and exceeding month-end quotas is boosted more for salespeople with low- and high-performance states than for salespeople with a medium-performance state.

Structuring a Multiproduct Sales Quota-Bonus Plan for a Heterogeneous Sales Force: A Practical Model-Based Approach

1994 ◽  
Vol 13 (2) ◽  
pp. 121-144 ◽  
Author(s):  
Murali K. Mantrala ◽  
Prabhakant Sinha ◽  
Andris A. Zoltners
Keyword(s):  
Sales Force ◽  
Model Based ◽  
Practical Model ◽  
Sales Quota ◽  
Bonus Plan

scholarly journals Yield Management Method Focused on Discount Ticket Sales Quota

2020 ◽  
Vol 61 (4) ◽  
pp. 261-266
Author(s):  
Shingo NAKAGAWA ◽  
Takamasa SUZUKI ◽  
Ryosuke MATSUMOTO ◽  
Noriko FUKASAWA ◽  
Naoya OZAKI
Keyword(s):  
Yield Management ◽  
Ticket Sales ◽  
Management Method ◽  
Sales Quota

Erratum: Sales Quota Determination

1936 ◽  
Vol 9 (4) ◽  
pp. 388
Author(s):  
Donald R. C. Cowan
Keyword(s):  
Sales Quota

The Effects of Quota Frequency: Sales Performance and Product Focus

2020 ◽  
Author(s):  
Doug J. Chung ◽  
Das Narayandas ◽  
Dongkyu Chang
Keyword(s):  
Sales Performance ◽  
Sales Force ◽  
Compensation Structure ◽  
High Performing ◽  
Retail Chain ◽  
Time Horizons ◽  
Sales Compensation ◽  
Multidimensional Effects ◽  
Short Time ◽  
Sales Quota

This study investigates the comprehensive and multidimensional effects of quota (goal) frequency on sales force performance. The study provides a theory of salespeople’s behavior—aggregate effort and the product-type focus—in response to the temporal length of a sales quota cycle. The theory includes many realistic elements, such as salespeople’s multidimensional effort, heterogeneity in ability, product focus, and forward-looking behavior. We test the theory through a field experiment, varying the sales compensation structure of a major retail chain in Sweden. Consistent with the developed theory, shifting to a temporally frequent quota structure leads to an increase in sales performance for low-performing salespeople by preventing them from giving up in later periods within a quota-evaluation cycle, but to a decrease in sales performance for high-performing salespeople. With quotas set over short time horizons, the high-performing salespeople focus mainly on low-ticket products, resulting in a decrease in both sales volume and the sale of high-ticket products, thus reducing the firm’s profits. This paper was accepted by Eric Anderson, marketing.

Sign in / Sign up

Export Citation Format

Share Document