This paper analyzes the role played by brand loyalty in determining optimal price promotional strategies used by firms in a competitive setting. (Loyalty is operationalized as the minimum price differential needed before consumers who prefer one brand switch to another brand.) Our objective is...

A theory of salesforce compensation plans is presented where the sales of a product depend not only on the salesperson's effort but also on the uncertainty in the selling environment. The firm chooses a compensation plan to maximize its profit taking into account the salesperson's likely effort...

The agency theory approach to understanding salesforce compensation plans is modified to incorporate the intratemporal nature of the salesperson's effort-rate decision, i.e., the decision about the effort-rate at any given point in time potentially depends upon the sales performance up to that...