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Impact of Control Systems over New Product Sales

Abstract

This paper's main goal is to understand the impact of control systems on the relationship between a salesperson's effort and their performance. The control systems have two perspectives: outcome and behavior. The difference between them is how a salesperson is evaluated in regards to their job. If the sales manager is only concerned with sales results, the control system is based on outcome. However, if the sales manager is concerned with a salesperson's capacities, abilities and knowledge, the control system is based on behavior. Based on the theories developed by Anderson and Oliver (1987)Anderson, E., & Oliver, R. L. (1987). Perspectives on behavior-based versus outcome-based salesforce control systems. Journal of Marketing, 51(4), 76-88. doi: 10.2307/1251249
https://doi.org/10.2307/1251249...
and Oliver and Anderson (1994)Oliver, R. L., & Anderson, E. (1994). An empirical test of the consequences of behavior- and outcome-based sales control systems. Journal of Marketing, 58(3), 53-67. doi: 10.2307/1251916
https://doi.org/10.2307/1251916...
, we proposed a theoretical framework to explain sales performance, positioning the control system as a moderating variable. We undertook two descriptive field investigations to test the proposed model's hypotheses for pharmaceutical sales representatives and car dealer salespersons. We estimated four regression equations to test the hypotheses. The first conclusion is that the perception of product innovation by salespeople actually influences the launch of new products. The second conclusion showed that salesperson effort has a negative relationship with performance. Third, we demonstrated the moderating effect control systems have on the relationship between salesperson experience and sales efforts.

Key words
system; control; sales; marketing; performance

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