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Salesperson Profitability in Relationship Marketing

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Part of the Developments in Marketing Science: Proceedings of the Academy of Marketing Science book series (DMSPAMS)

Abstract

Unfortunately, though several authors have underscored the importance of the salesperson’s role in the creation of purchaser-salesperson relationships (Weitz and Bradford 1999), few studies have focused on the relationship between customer value and salesperson’s profitability in relationship approach. For example, consider the scenario of a manager who wishes to recruit a salesperson to maintain and develop a portfolio customer relationship. An important issue for the manager to consider is the following: Under which condition is this decision profitable for the firm? This in turn gives rise three keys questions: How does the salesperson’s profitability vary as a function of customer value? How should compensation be structured in response to such changes? And is it profitable that salesperson’s compensation should be equal across customer when the firm has a customer portfolio?

Keywords

  • Harvard Business Review
  • Relationship Marketing
  • Customer Retention
  • Customer Lifetime Value
  • Compensation Plan

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Echchakoui, S.d. (2015). Salesperson Profitability in Relationship Marketing. In: Kubacki, K. (eds) Ideas in Marketing: Finding the New and Polishing the Old. Developments in Marketing Science: Proceedings of the Academy of Marketing Science. Springer, Cham. https://doi.org/10.1007/978-3-319-10951-0_5

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