We study the performance of small retail sales teams facing an incentive scheme that includes both a lump sum bonus and multiple accelerators (kinks where the piece rate jumps upward). Consistent with standard labor supply models, we find that the presence of an attainable bonus or kink on a...

In this paper, we analyze the impact of two forms of commonly used threshold-based incentive schemes on the observed 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...

Sales incentives are omnipresent in sales organizations. Numerous studies have thus analyzed the effect of sales incentives on sales force motivation and performance. At the same time, extant research portrays customer knowledge of sales incentives predominantly as a burden for the customer-firm...