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Salespersons often spend time and money giving prospective buyers compliments such as kind words, meals and gifts. Though prior research has shown that compliments will influence a prospective buyer's decision, it is unknown the extent to which salespersons should make these investments. In this...
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sales variability. The first form of the incentive comprises an additional marginal payment on crossing a specified sales … threshold and the second form of the incentive scheme comprises a lumpsum bonus payment on crossing the predetermined sales … threshold. We model the effect of such incentives under two specific scenarios: an exclusive dealership selling a single product …
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