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Investigations of sales representatives’ valuation of options

Author

Listed:
  • Leff Bonney

    (Florida State University)

  • Christopher R. Plouffe

    (University of Akron)

  • Michael Brady

    (Florida State University)

Abstract

The present research leverages the “irrational options” theoretical framework to explore options rationality differences between salespeople and non-salespeople. Specifically, the reported research first examines (Study 1) whether or not salespeople are more likely to place a higher value on diminishing options than individuals who do not work in sales. Two follow-up studies embed a potential internal moderator (salesperson thinking style; Study 2) and a potential external moderator (performance-based incentives; Study 3) of salesperson valuations of diminishing options. The method employed in all three studies is an experimental design tailored after Shin and Ariely’s (Management Science 50(5):575-586, 2004) seminal work on irrationality and options availability. The results demonstrate that, compared to non-salespeople, salespeople are more inclined to value option availability (Study 1), with this effect being especially pronounced for rule-bound thinkers (Study 2) and those operating under incentive-based compensation plans (Study 3). The article concludes by highlighting key managerial and theoretical implications, while acknowledging limitations and proposing directions for related, future work.

Suggested Citation

  • Leff Bonney & Christopher R. Plouffe & Michael Brady, 2016. "Investigations of sales representatives’ valuation of options," Journal of the Academy of Marketing Science, Springer, vol. 44(2), pages 135-150, March.
    • Handle: RePEc:spr:joamsc:v:44:y:2016:i:2:d:10.1007_s11747-014-0412-7
    DOI: 10.1007/s11747-014-0412-7
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    Cited by:

    1. Son K. Lam & Michel Borgh, 2021. "On salesperson judgment and decision making," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 855-863, September.
    2. Robert Mayberry & James Sanders Boles & Naveen Donthu, 2018. "An escalation of commitment perspective on allocation-of-effort decisions in professional selling," Journal of the Academy of Marketing Science, Springer, vol. 46(5), pages 879-894, September.
    3. Valerie Good & Douglas E. Hughes & Hao Wang, 2022. "More than money: establishing the importance of a sense of purpose for salespeople," Journal of the Academy of Marketing Science, Springer, vol. 50(2), pages 272-295, March.
    4. Yael Karlinsky-Shichor & Oded Netzer, 2024. "Automating the B2B Salesperson Pricing Decisions: A Human-Machine Hybrid Approach," Marketing Science, INFORMS, vol. 43(1), pages 138-157, January.
    5. Bryan Hochstein & Willy Bolander & Ronald Goldsmith & Christopher R. Plouffe, 2019. "Adapting influence approaches to informed consumers in high-involvement purchases: are salespeople really doomed?," Journal of the Academy of Marketing Science, Springer, vol. 47(1), pages 118-137, January.

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