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Management of sales advisers and service climate: an experiment

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  • Fanny-Juliet Poujol

    (Institut d'Administration des Entreprises de Valenciennes - UVHC - Université de Valenciennes et du Hainaut-Cambrésis)

Abstract

Purpose: Although experts agree on the importance of service quality, sales force management practices are often far from conforming to their recommendations. The current use of sales contests with quantitative objectives on turnover or profit margin is evidence of this divergence. Sharma notes the need for a better understanding of the impact of such incentives on quality of service. In response to this call, the concept of "service climate" as an internal indicator of customer perception of service quality is studied. More specifically, the purpose of this paper is to consider which type of sales contest best preserves service climate. Design/methodology/approach: Four characteristics of sales contests are examined through an experimental approach. Salespeople's perception of service climate are measured. Hypotheses are tested with ANOVA. Findings: The study shows that sales contest can have a negative impact on the service climate. The results give indications as to which incentives are optimal in terms of service climate. Surprisingly, selective contests, with a ranked competition and few winners, would affect service climate to a lesser extent. Practical implications: The findings of this study are unexpected and indicate that sales managers need to pay attention not only to sales contest's characteristics but also their interaction. The sales contest is not an addition to but a combination of modalities. Originality/value: This study has both managerial and research implications for design and implementation of sales contest.

Suggested Citation

  • Fanny-Juliet Poujol, 2009. "Management of sales advisers and service climate: an experiment," Post-Print hal-03122111, HAL.
    • Handle: RePEc:hal:journl:hal-03122111
    DOI: 10.1108/09564230910964390
    Note: View the original document on HAL open archive server: https://hal.parisnanterre.fr/hal-03122111
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    References listed on IDEAS

    as
    1. Fanny Poujol & Christophe Fournier, 2007. "Caractéristiques d’un challenge de vente et adhésion des commerciaux : quelques recommandations," Post-Print hal-02915235, HAL.
    2. Anil Gaba & Ajay Kalra, 1999. "Risk Behavior in Response to Quotas and Contests," Marketing Science, INFORMS, vol. 18(3), pages 417-434.
    3. Murphy, William H., 2004. "In pursuit of short-term goals: anticipating the unintended consequences of using special incentives to motivate the sales force," Journal of Business Research, Elsevier, vol. 57(11), pages 1265-1275, November.
    4. Eric Langeard & Pierre Eiglier, 1994. "Relation de service et marketing," Post-Print halshs-02926686, HAL.
    5. Ajay Kalra & Mengze Shi, 2001. "Designing Optimal Sales Contests: A Theoretical Perspective," Marketing Science, INFORMS, vol. 20(2), pages 170-193, December.
    6. Drago, Robert & Turnbull, Geoffrey K., 1991. "Competition and cooperation in the workplace," Journal of Economic Behavior & Organization, Elsevier, vol. 15(3), pages 347-364, May.
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    Cited by:

    1. Benistant, Julien & Galeotti, Fabio & Villeval, Marie Claire, 2021. "The Distinct Impact of Information and Incentives on Cheating," IZA Discussion Papers 14014, Institute of Labor Economics (IZA).
    2. Hailian Qiu & Ning Wang & Minglong Li, 2021. "Stimulating Customer Citizenship Behavior With Service Climate: The Mediating Role of Customer Psychological Empowerment," SAGE Open, , vol. 11(1), pages 21582440211, March.
    3. Benistant, Julien & Galeotti, Fabio & Villeval, Marie Claire, 2022. "Competition, information, and the erosion of morals," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 148-163.

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