René Y. Darmon

Assessing consumer preferences in the context of new product diffusion

Abstract The possibility for different types of adopters, along the Rogers [Rogers, E.M., 1962. Diffusion of Innovations. Free Press, New York.] categorization, to display different preference patterns for a products features, is investigated. Product descriptions containing diffusion-related situational variables, time elapsed since product introduction and level of market penetration, are subjected to conjoint analysis, providing a basis for categorizing individuals prior to purchase and deriving group-specific feature importances. The impact of such situational variables on preferences is estimated through the analysis of interactions between product features and situations.

Role of Headquarter Control by Multinationals in International Advertising Decisions

The arguments for and against international advertising standardization are briefly reviewed. Then the factors influencing the international advertising decision are touched upon in order to show the relevance of the headquarter control factor for multinationals. The findings indicate that the extent of headquarter control on international advertising hears some relation to country of multinational corporation origin; it is independent of product, but reflects dependence on export market differences.

The ConCepT of SaleSperSon replaCemenT Value: a SaleS forCe TurnoVer managemenT Tool

In most industries, sales force turnover is high and very costly to an organization. This paper argues that sales force turnover refects the quality of sales management performance and that a systematic analysis of sales force turnover can provide clear guidance to increased sales management’s practices and effectiveness. For that purpose, a simple and fexible fve-step procedure relying on the concept of a salesperson’s “replacement value” is proposed. It requires only some systematic data collection from leavers at the exit interview time. A case study illustrates the procedure.

A model for optimizing the refund value in rebate promotions

Abstract We derive a simple model for finding the optimal refund to be offered to final consumers by manufacturing firms during rebate promotions. The key features of our work are the explicit representations of the redemption function, purchase acceleration, and rebuys by brand-switchers. Depending upon a firms objectives and given some generally accepted assumptions about the firms demand function, an optimal refund rate exists that should be different than the short-term rebate rate.

Where Do the Best Sales Force Profit Producers Come From

This paper outlines an analytical framework for assessing the long-run monetary value to a given firm of hiring salespeople from various sources of candidates. The proposed method takes into account the likely career path of a salesperson from each source within the considered firm, and consequently accounts for the expected sales levels, the expected turnover rate and all the associated costs. An application to an actual case study is reported. It was found, in this specific instance, that salespeople who had company previous experience, but in non-selling positions, could be expected to yield more long-run profits than salespeople from any other source.

Selecting Appropriate Sales Quota Plan Structures and Quota-Setting Procedures

The typical objective of a sales quota-bonus plan (QBP) is to enhance salespeoples performance by granting them a bonus when they reach a prespecified performance level (a sales quota), set higher than the performance level they would achieve otherwise. Even though QBPs are short-term plans, they have long-run profit impacts through their effects on a sales force morale and feelings of equity (or inequity). This is why devising sales quota plans has always been a difficult task. This papers objective is to discuss how different QBP structures and related quota setting procedures are likely to be selected by management, depending on such situational characteristics as managements objectives, constraints, and available (or collectible) information.

A New Conceptual Framework of Sales Force Control Systems

An important stream of research has recently studied sales force control systems (SFCS). Most studies have relied on a simple conceptualization of control, especially outcome-/behavior-based and formal/informal controls. Because most empirical studies based on such conceptual frameworks have led to contradictory or inconsistent findings, this paper attempts to identify a few important causes, especially management style (centralized or decentralized) and the different managerial objective’s time horizons (short and long run). Relying on an extended definition of an SFCS, the proposed new conceptual framework recognizes the dynamic nature of controls, introduces the concepts of usage intensity, depth of usage, and rigor of enforcement of control and feedback tools. The effects of the SFCS on salespeople’s transactional and customer relationship-building performances are considered. A series of research propositions is proposed.

Internal Validity Assessment of Conjoint Estimated Attribute Importance Weights

This paper investigates how various conjoint designs (full versus fractional) and estimation procedures (LINMAP, MONANOVA, OLS) may interact with basic characteristics of the “true” utility functions (i.e., their range, shape, and curvature) when estimating attribute importance weights. Substantial weight distortions are found, especially under a fractional design.

Controlling sales force turnover costs through optimal recruiting and training policies

Abstract Although some sales force turnover has been shown to be desirable, too high a turnover rate has adverse consequences on the sales organization, is costly, and should be controlled. This paper shows that under typical circumstances, over a certain period of time, no firm can reasonably expect to always have exactly the number of salespeople it desires. In most cases, a firm may have more salespeople than it needs, and bear the associated costs of idle personnel, or too few sales representatives with the related vacant territory costs. This paper shows that (1) these costs are related to the length and costs of new salespeople’s recruiting procedures and training programs, and (2) management can minimize them by devising proper policies about the frequency of new salespeople recruiting campaigns and about the size of the various new recruit cohorts. Data requirements and implementation issues are discussed.

Optimal sales force compensation plans: an operational procedure

This paper describes an operational procedure for identifying optimal sales force compensation plans featuring salary, commissions and/or quota/bonus. Utility-maximising salespeoples behaviours and reactions to given compensation plans are simulated, and the resulting sales, costs and long-term expected profits are assessed. Then, a search technique attempts to identify the long-term profit-maximising compensation plan structure. Operationally, the simulation model parameters are calibrated so as to reflect those of an actual sales force, and consequently the optimal compensation scheme for this specific sales force can be identified. The concept is illustrated in an actual case study.