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W2011132925 abstract "We build a mathematical model for designing an optimal salesforce compensation plan for multiple products. The agency theory approach to the single product problem is extended by introducing multi-dimensional sales-effort response distribution. We demonstrate analytically how to derive an optimal salesforce compensation plan from given sales-effort response distributions. We apply our model to some simple cases: independent, substitutable, and complementary products. For two independent products, our optimal salesforce compensation plan calls for a base salary plus commissions for every product. The commission rates can be different products. For two substitutable products, our optimal compensation has the form of a base salary plus a commission for the total sales. For two complementary products, our optimal compensation may take the form of a base salary plus a commission for the product with higher sales-effort effectiveness." @default.
W2011132925 created "2016-06-24" @default.
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W2011132925 date "1995-11-01" @default.
W2011132925 modified "2023-09-27" @default.
W2011132925 title "Development of optimal salesforce compensation plans for independent, complementary and substitutable products" @default.
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W2011132925 doi "https://doi.org/10.1016/0167-8116(95)00011-5" @default.
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