The impact of customer satisfaction based incentive systems on salespeople's customer service response: an empirical study

Article Abstract:

There is increasing recognition that customer satisfaction should be an important objective of sales organizations. For example, 40 percent of the incentives of IBM's salesforce are based on customer satisfaction ratings. In a series of three studies, this paper investigates the relationship between different bases of salespeople's incentives and their customer service response behavior. The results provide evidence that incentive systems based on customer satisfaction increase salespeople's customer service response compared to salespeople whose incentives are based on sales volume. An interesting and important result of the studies is that mixed incentives (incentives based on a combination of sales volume and customer satisfaction) reduce the customer service response of salespeople. Thus, firms that are introducing mixed customer satisfaction incentives need to study the impact of the incentive structure on salesperson behavior. Finally, training positively influences salespeople's customer service behavior. Theoretical and methodological implications of these findings and directions for sales managers are discussed. (Reprinted by permission of the publisher.)

Customer service, Customer satisfaction, Incentives (Business)

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Customers' decision-making styles and their preference for sales strategies: conceptual examination and an empirical study

Article Abstract:

The primary purpose of this paper is to examine business customers' decision-making styles and the impact these styles have on the selection of a sales strategy for the selling firm. The paper reports the results of a survey of 109 customers of a high-technology firm. We first determine the decision-making styles of business customers and then examine the relationship between customers' decision-making styles and their preference for different sales strategies. The results indicate that business customers can be grouped based on their decision-making styles. Also, the decision-making style of the firm was reflected in the decision-making styles of individuals. Three decision-making styles with distinct preferences for sales strategies emerged from this analysis: entrepreneurial, planning, and bureaucratic. Customers demonstrating different decision-making styles were also found to be different in their demographic characteristics. The results provide directions for future theoretical investigations and applications in segmentation and sales management. (Reprinted by permission of the publisher.)

Decision-making, Decision making, Consumer preferences, Consumer behavior

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The accuracy of salespersons' perceptions of their customers: conceptual examination and an empirical study

Article Abstract:

The accuracy of salespersons' perceptions of their customers can have a significant effect on corporate profitability. Aside from the impact on short term sales performance, inaccurate information from the sales force can adversely affect the quality of long term, strategic plans. Yet, a review of the literature uncovered only two empirical studies which examined salespersons' accuracy. The current paper presents a conceptual discussion and empirical study of the antecedents and consequences of the accuracy of the salespersons' perceptions. The paper emphasizes that the determination and improvement of salespersons' accuracy should be an essential part of the management of the salesforce. (Reprinted by permission of the publisher.)

Customer relations

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