Date of Award
Summer 2013
Degree Type
Dissertation
Degree Name
Doctor of Business Administration (DBA)
Department
Marketing
First Advisor
Dr. Michelle Steward
Second Advisor
Dr. Felicia N. Morgan
Third Advisor
Dr. Joseph F. Hair
Fourth Advisor
Dr. Brian N. Rutherford
Abstract
Previous research has examined the dysfunctional relationships often encountered between marketing and sales, and the importance of cooperation and coordination between these two functional areas. But no prior studies have investigated the consequences of misaligned pricing and sales force compensation strategies that emerge from these two functional areas. This dissertation examines the impact of the firm’s pricing strategy on the sales force, and evaluates the importance of identifying the misalignment of goals of the pricing and sales force compensation strategies as a potential root cause of disappointing program outcomes. Essay 1 uses in-depth qualitative interviews with business-to-business (B2B) salespeople and sales managers across several industries to examine the nature and ramifications of strategic misalignment of pricing and sales compensation approaches. Based on extant literature and insights from the field, a series of potential relationships are proposed between pricing and sales force compensation strategies. Essay 2 examines the effects of misalignment of goals of the pricing and sales force compensation strategies on the salesperson’s expectancy, instrumentality, motivation, and behavioral intention. A scenario-based experimental design is used to test the hypotheses in Essay 2 based on data collected from salespeople. The findings of this dissertation suggest that understanding the impact of the firm’s pricing strategy on the salesperson is an unstudied yet critical factor influencing sales and marketing program success.