The Joint and Multilevel Effects of Training and Incentives from Upstream Manufacturers on Downstream Salespeople’s Efforts

Sarah Magnotta, Brian Murtha, Goutam Challagalla

Research output: Contribution to journalArticlepeer-review

16 Scopus citations

Abstract

Manufacturers frequently face the challenge of motivating distributor salespeople to focus efforts on their products rather than competitors’ products. The present research explores two mechanisms that manufacturers use to address this challenge: training and incentives (spiffs). The authors find that the impact of these mechanisms on distributor salespeople’s efforts (toward a manufacturer’s products) largely depends on the extent to which manufacturers also provide training and incentives to distributor sales managers. More specifically, providing greater incentives to distributor sales managers undermines the relationship between their salespeople’s training and effort but enhances the relationship between their salespeople’s incentives and effort. Furthermore, greater sales manager training enhances the impact of salespeople’s incentives on effort; however, greater salesperson training undermines the relationship between salesperson incentives and effort. Thus, this research shows that the combination of mechanisms (training and incentives) and the levels at which manufacturers provide them (distributor salespeople and sales managers) can have different implications for distributor salespeople’s efforts.

Original languageEnglish
Pages (from-to)695-716
Number of pages22
JournalJournal of Marketing Research
Volume57
Issue number4
DOIs
StatePublished - Aug 1 2020

Bibliographical note

Publisher Copyright:
© American Marketing Association 2020.

Keywords

  • effort
  • incentive dilemma
  • incentives
  • legitimacy
  • sales managers
  • spiffs
  • training
  • training transfer

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing

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