Abstract
Ross (1991) demonstrated that a salesperson's quota acts as a reference point (target or goal) and influences sales call selection. Ross, however, focused only on the effect of a single reference point. The use of multiple goals is quite common in the sales environment, for example in the quota plus bonus compensation structure and in the use of incentive plans. Our study compares and contrasts call selection when a single goal (quota) is given versus when dual targets are assigned (a quota plus bonus level). Consistent with our hypotheses, we find that call selection patterns are influenced by the number of targets assigned to the salesperson.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Erez, Miriam and Frederick H. Kanfer. (1983). ''The Role of Goal Acceptance in Goal Setting and Task Performance,'' Academy of Management Review, 8(3), 454–463.
Erez, Miriam and Isaac Zidon. (1984). ''Effect of Goal Acceptance on the Relationship of Goal Difficulty to Performance,'' Journal of Applied Psychology, 69(1), 69–78.
Feather, Norman T. (1982a). ''Actions in Relation to Expected Consequences: An Overview of a Research Program,'' in Norman T. Feather (ed.), Expectations and Actions: Expectancy-Value Models in Psychology. Hillsdale, NJ: Erlbaum, 53–95.
Feather, Norman T. (1982b). ''Expectancy-value approaches: Present Status and Future Directions,'' in Expectations and Actions: Expectancy-Value Models in Psychology. Editor, Norman T. Feather, Hillsdale, NJ: Erlbaum.
Futrell, Charles M. (1999). Fundamentals of Selling: Customers For Life, 6th ed., Boston, MS, Irwin McGraw-Hill.
Garland, Howard. (1982). ''Goal Levels and Task Performance: A Compelling Replication of some Compelling Results,'' Journal of Applied Psychology, 67, 245–248.
Joseph, Kissan, and Manohar U. Kalwani. (1998). ''The Role of Bonus Pay in Salesforce Compensation Plans,'' Industrial Marketing Management, 27, 147–159.
Kahneman, Daniel, and Amos Tversky. (1979). ''Prospect Theory: An analysis of decision under risk,'' Econometrica, 47(2), 263–291.
Latham, Gary P., and Gary A. Yukl. (1975). ''A Review of Research on the Application of Goal Setting in Organizations,'' Academy of Management Journal, 18(4), 824–845.
Laughhunn, Dan J., John W. Payne, and Roy Crum. (1980). ''Managerial Risk Preferences for Below Target Returns,'' Management Science, 26, 1238–1249.
Lewin, Kurt, Tamara Dembo, Leon Festinger, and Pauline S. Sears. (1944). ''Level of Aspiration,'' in Personality and the Behavior Disorders, Vol. 1, Editor, J. Hunt, NY: The Ronald Press Co. 333–378.
Lopes, Lola L. (1987). ''Between Hope and Fear: The Psychology of Risk,'' in Advances in Experimental Social Psychology, Editor, Leonard Berkowitz, San Diego, CA: Academy Press Inc. 20, 255–295.
Locke, E. A. (1968). ''Toward a Theory of Task Motivation and Incentive,'' Organizational Behavior and Human Performance, 3, 157–189.
Locke, E. A., and Gary P. Latham. (1984). Goal Setting: A Motivational Technique that Works! Englewood Cliffs, NJ: Prentice-Hall.
Locke, E. A., and Gary P. Latham. (1990). A Theory of Goal Setting and Task Performance. Englewood Cliffs, NJ: Prentice-Hall.
MacCrimmon, Kenneth R., and Donald A. Wehrung. (1986). Taking Risks: The Management of Uncertainty. New York, NY: Free Press.
March, James G. (1988). ''Variable risk preferences and adaptive aspirations,'' Journal of Economic Behavior and Organization, 9(1), 5–24.
March, James G., and Zur Shapira. (1987). ''Managerial Perspectives on Risk and Risk Taking,'' Management Science, 33, 1404–1417.
Marchetti, Michele. (1996). ''Global Gamble,'' Sales & Marketing Management, 148(7), (July), 64–69.
Mowen, John C. and Greg W. Marshall. (1992). ''The Effects of Gain/Loss Frames on Product Management Risk-Taking: A Replication and Extension,'' American Marketing Association Winter Educators' Conference Proceedings, 3, 189–195.
Mowen, John C., R. Dennis Middlemist, and David Luther. (1981). ''Joint Effects of Assigned Goal Level and Incentive Structure on Task Performance: A Laboratory Study,'' Journal of Applied Psychology, 66(5), 598–603.
Naylor, James C., and Daniel R. Ilgen. (1984). ''Goal Setting: A theoretical analysis of a motivational technology,'' in Research in Organizational Behavior, Editors, B. M. Staw and L. L. Cummings, JAI, Greenwich: CT, 6, 95–140.
Payne, John W., Dan J. Laughhunn, and Roy Crum. (1980). ''Translation of Gambles and Aspiration Level Effects in Risky Choice Behavior,'' Management Science, 26(10), 1039–1060.
Payne, John W., Dan J. Laughhunn, and Roy Crum. (1981). ''Further Tests of Aspiration Level Effects in Risky Choice Behavior,'' Management Science, 27(8), 953–958.
Rasmusson, Erika. (1997). This is Not an Incentive,'' Sales & Marketing Management, 149(11), (October), 123–129.
Ross, William T. Jr. (1991). ''Performance Against Quota and the Call Selection Decision,'' Journal of Marketing Research, 28 (August), 296–306.
Schoemaker, Paul J. H. (1982). ''The Expected Utility Model: It's Variants, Purposes, Evidence, and Limitations,'' Journal of Economic Literature, 20, 529–563.
Siegel, Sidney. (1957). ''Level of aspiration and decision making,'' Psychological Review, 64(4), 253–262.
Thaler, Richard and Eric Johnson (1990). ''Gambling With the House Money and Trying to Break Even: The Effect of Prior Outcomes on Risky Choice,'' Management Science, 36(6), 643–661.
Vroom, Victor H. (1964). Work and Motivation. New York, NY: Wiley.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Mcfarland, R.G., Challagalla, G.N. & Zenor, M.J. The Effect of Single and Dual Sales Targets on Sales Call Selection: Quota versus Quota and Bonus Plan. Marketing Letters 13, 107–120 (2002). https://doi.org/10.1023/A:1016041802460
Issue Date:
DOI: https://doi.org/10.1023/A:1016041802460