The role of status and leadership style in sales contests: A natural field experiment

Willem Verbeke, Richard P. Bagozzi and Frank D. Belschak

Journal of Business Research, 2016, vol. 69, issue 10, 4112-4120

Abstract: This paper addresses the question whether status alone, as compared to a combined financial/status incentive, is strong enough to motivate team members taking part in a retail sales contest to sell more goods to customers. Using a two-phase natural field experiment, we studied the impact of a sales contest on actual sales growth in 102 discount stores. The first experimental phase included a financial/status reward and status-only condition; the second experimental phase included financial/status reward, status-only, and control conditions. Compared to the control condition, the status-only condition had a significant effect on sales volume. Store managers' leadership style, however, was found to have a moderating effect. Greater sales growth resulted in the financial/status reward condition when store managers had a transformational leadership style.

Keywords: Sales contest; Incentives; Tournament theory; Status theory; Field experiment; Leadership (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:69:y:2016:i:10:p:4112-4120

DOI: 10.1016/j.jbusres.2016.03.040

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