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An escalation of commitment perspective on allocation-of-effort decisions in professional selling

Author

Listed:
  • Robert Mayberry

    (Georgia State University)

  • James Sanders Boles

    (The University of North Carolina at Greensboro)

  • Naveen Donthu

    (Georgia State University)

Abstract

Salesforce compensation theory assumes that given proper design of the incentive structure, salespeople will rationally allocate effort to maximize returns to their firm and themselves. However, faced with large sunk investments over long selling cycles, salespeople continue to commit resources to opportunities with little or no chance of being won, to the exclusion of viable leads. This article theoretically explores and empirically tests this over-investment effect under four potentially moderating conditions using a large multinational corporation’s industrial salesforce. The findings from this field study indicate that escalation of commitment is more likely to occur in non-strategic accounts and accounts not involving channel partners. In addition, salespeople with lower ability demonstrate greater escalation of commitment. The study indicates that without targeted managerial intervention, salespeople will over-invest precious selling resources in unprofitable, unwinnable opportunities.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:joamsc:v:46:y:2018:i:5:d:10.1007_s11747-018-0591-8
    DOI: 10.1007/s11747-018-0591-8
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    Cited by:

    1. 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.
    2. Lv, David Diwei & Chen, Weihong & Zhu, Hang & Lan, Hailin, 2019. "How does inconsistent negative performance feedback affect the R&D investments of firms? A study of publicly listed firms," Journal of Business Research, Elsevier, vol. 102(C), pages 151-162.
    3. 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.
    4. Valerie Good & Douglas E. Hughes & Ahmet H. Kirca & Sean McGrath, 2022. "A self-determination theory-based meta-analysis on the differential effects of intrinsic and extrinsic motivation on salesperson performance," Journal of the Academy of Marketing Science, Springer, vol. 50(3), pages 586-614, May.
    5. Miao Li & Luluo Peng & Guijun Zhuang, 2020. "Sales Control Systems and Salesperson Commitment: The Moderating Role of Behavior Uncertainty," Sustainability, MDPI, vol. 12(7), pages 1-18, March.

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