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The purpose of this study is to provide an optimal joint strategy of multi-period pricing and sales effort for a retailer with a logit choice demand in an integrated channel.
Abstract
Purpose
The purpose of this study is to provide an optimal joint strategy of multi-period pricing and sales effort for a retailer with a logit choice demand in an integrated channel.
Design/methodology/approach
Customer demand is characterized by a logit choice model, it varies over time and is influenced by price and sales effort. The multi-period decision model for the retailer is constructed using a discrete-time dynamic programming method to determine the optimal price and sales effort in each period.
Findings
When the inventory level does not exceed a certain threshold, decreasing price and increasing sales effort over time or as inventory level increases are the optimal strategies. However, once the inventory level exceeds the threshold, the optimal strategy is to maintain both price and sales effort constant as the inventory level changes or to increase price and decrease sales effort over time. Additionally, the greater the influence of sales effort on demand or the higher the arrival rate of customers, the higher the optimal price and the greater the optimal sales effort level.
Originality/value
This study contributes to the existing research on dynamic pricing and sales effort in integrated channels by incorporating a logit choice model. Furthermore, it provides valuable management insights for retailers operating in an integrated channel to make pricing and sales effort decisions based on inventory level and time period.
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Keywords
Lei Liu, Shaohui Wu and Guoliang Cai
Product presentation plays a critical role in influencing consumers’ purchasing decisions in online shopping. The purpose of this study is to examine the effects of text-image…
Abstract
Purpose
Product presentation plays a critical role in influencing consumers’ purchasing decisions in online shopping. The purpose of this study is to examine the effects of text-image information on online product presentation pages on sales. This study also specifically explores the moderating role of celebrity endorsements in the relationship between text-image presentation information and sales.
Design/methodology/approach
This study is based on regression analysis using data sets from the largest online book retailer in China, Dangdang.com.
Findings
The results of this study show that there is an inverse U-shaped relationship between word count and book sales. Conversely, image quantity has a positive linear effect on book sales. Furthermore, celebrity endorsements moderate the relationship between word count and sales in two distinct ways. First, the positive effect of increasing word count from low to medium is enlarged by increasing the number of celebrity endorsers. Second, the turning point of the inverse-U relationship between word count and sales rank moves to the right as the number of endorsers increases.
Originality/value
To the best of the authors’ knowledge, this study is among the first to examine the effects of text-image quantity on sales across the full continuum. This study adds understanding on how information load might have distinct consequences on the processing performance of text and images. Furthermore, this study investigates how sales are impacted by the quantity of celebrity endorsers in relation to textual and pictorial information in online shopping contexts, extending our knowledge of the effectiveness of celebrity endorsements.
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Yong Liu, Chang-Xue Lin and Gang Zhao
The paper attempts to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on…
Abstract
Purpose
The paper attempts to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a two-part tariff coordination mechanism.
Design/methodology/approach
To deal with this pricing conflict problems of dual-channel supply chain consisting of dominant manufacturer and a retailer, considering the fact that online reviews and in-sale service are important factors on consumers’ purchase decisions, the authors establish some basic models and exploit them to discuss the optimal pricing decisions under the decentralized and centralized decision and analyze the influence of online reviews and in-sale service on dual-channel supply chain. Finally, the authors design a profit-sharing coordination mechanism.
Findings
The results show that the optimal online direct selling price is positively correlated with product perceived quality obtained from online reviews and negatively correlated with the in-sale service. The traditional retail price is positively correlated with the in-sale service and weakly correlated with online reviews. For the manufacturer and retailer, whether decentralized decision or coordination contract, their profits increase with the increase of the in-sale service in a certain range and quality perceived from spontaneous online reviews. Online reviews and in-sale service are important factors on consumers’ purchase decisions. Positive in-sale services and online reviews can provide consumers with a better shopping experience, thereby promoting their enthusiasm for shopping and improving their quality of life. The two-part tariff coordination mechanism improves the profits of the manufacturer and the traditional retailer, respectively, through the transfer fee.
Originality/value
The proposed approach can well analyze the channel conflicts and pricing problems between retailers and manufacturers with respect to product offline price and online price. The analysis and results can inform decision-making for manufacturers and retailers.
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Teidorlang Lyngdoh, Ellis Chefor and Bruno Lussier
Salespeople’s unethical behaviors have been the subject of extensive academic research and practitioner outcry. High pressure, complex selling environments and extant methods of…
Abstract
Purpose
Salespeople’s unethical behaviors have been the subject of extensive academic research and practitioner outcry. High pressure, complex selling environments and extant methods of monitoring, control and compensation of salespeople have been found to lead to short-term sales behaviors, such as lying, that are detrimental to both customers and firms in the long run. Furthermore, work and family pressures can lead to unethical sales behaviors. However, research on the impact of the social environment on unethical behaviors in sales is scant. This study aims to examine the impact of social factors (e.g. supervisor support and family work support) on salespeople’s unethical behaviors as a social exchange process in an emerging market context where work and family pressures are high. Specifically, the mediating role of emotional and cognitive engagement on the relationship between social support and unethical behaviors is investigated.
Design/methodology/approach
An empirical study was conducted to examine the relationship between social support (family work support and supervisor support), engagement (emotional and cognitive) and unethical behaviors. Survey data were collected from 496 salespeople from multiple industries in India, and partial least squares structural equation modeling was used to test the hypothesized relationships. In addition, post hoc qualitative interviews were conducted with 15 salespeople to corroborate the findings.
Findings
Supervisor support is positively related to emotional and cognitive engagement and negatively related to unethical behaviors. Contrary to our hypothesis, family work support is positively related to unethical behaviors. However, this relationship becomes negative when the salesperson is emotionally and cognitively engaged with their work.
Research limitations/implications
This research enhances the understanding of the antecedents of unethical behaviors in sales. Supervisor support, emotional engagement and cognitive engagement reduce unethical behaviors. However, family work support increases unethical behaviors. The relationship between social support (supervisor and family work) and unethical behaviors is mediated by emotional and cognitive engagement. These findings offer sales managers dealing with increasing work and family pressures and the blurring of personal and professional life a way to motivate their sales force to act in a manner that benefits customers and the firm in the long run.
Practical implications
The findings offer insights on how sales managers and organizations can help design supportive work environments for their salespeople to help reduce unethical behaviors. The findings also highlight the importance of understanding salesperson family values during the hiring process and keeping salespeople engaged, especially while they work from home, are isolated from their work environment and spend more working hours at home with family members.
Originality/value
To the best of the authors’ knowledge, the current research is the first to investigate the impact of family work support on unethical behaviors. This is timely and valuable as the current COVID-19 pandemic has increased the number of salespeople working from home, reduced sales performance and increased anxiety due to economic uncertainty, all of which could encourage unethical sales behaviors. This paper is also the first to investigate the mediating role of engagement on the effects of social support on unethical behaviors.
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Keywords
Marta Giovannetti, Arun Sharma, Deva Rangarajan, Silvio Cardinali and Elena Cedrola
The COVID-19 pandemic has led to major sales strategy and process changes as many interactions migrated from face-to-face to virtual environments. The nature of the interactions…
Abstract
Purpose
The COVID-19 pandemic has led to major sales strategy and process changes as many interactions migrated from face-to-face to virtual environments. The nature of the interactions changed, and sales firms, the sales function and salespeople created new processes to excel in virtual environments. As sales processes evolve further, this paper aims to focus on understanding the enduring shifts in sales strategy and processes. In addition, this study seeks to understand the characteristics of enduring shifts and how they are distinct from temporary shifts.
Design/methodology/approach
This qualitative analysis provides a comprehensive overview of the sales organizations and salespeople over the period from the start of the pandemic to early 2022. The authors interviewed 66 sales professionals from different countries and industries to better understand the temporary and enduring shifts in sales strategy and processes, adopting ad inductive and narrative approach.
Findings
There are four major findings. First, four key themes emerged: increased digitalization, resistance to digitalization, sales process changes and sales organization transformation. Second, changes are classified as temporary, permanent and accelerated changes. Third, some proposed changes were not supported. Finally, five findings were found that were not discussed in previous literature.
Originality/value
This paper finds distinctive findings that offer additional valuable insights that connect to and extend existing literature. These include emerging themes, classification shifts, unsupported proposed changes and unique findings.
Details
Keywords
Tyler Hancock, Michael L. Mallin, Ellen B. Pullins and Catherine M. Johnson
This study aims to use cognitive appraisal theory to explain how organizational disruption influences the development of envy resulting in unethical selling practices, turnover…
Abstract
Purpose
This study aims to use cognitive appraisal theory to explain how organizational disruption influences the development of envy resulting in unethical selling practices, turnover intentions and a reduction in customer orientation that causes disruption to impact customer relationships. This research helps to address drivers of salesperson envy, the potential disruptions to customer relationships and the required need to invest in psychological resources to offset these negative effects.
Design/methodology/approach
A total of 211 salespeople were surveyed to test the hypotheses. First, the measurement model was validated using a confirmatory factor analysis. Next, the hypotheses were tested using structural equation modeling AMOS 27. Mediation and moderated mediation were tested using the bootstrap method. Estimands were created within AMOS to test the indirect and interaction effects in the full model. A post hoc analysis further informed the findings.
Findings
The results show that the development of envy increases under conditions of organizational disruptions, leading to potential customer disruptions through turnover intentions, unethical selling behaviors and a reduction in customer orientation. In addition, the mediation analysis shows that envy drives the relationship between organizational disruption and unethical selling, turnover intentions and customer orientation through fully mediated relationships. Finally, the interaction effects between organizational disruption and psychological capital show high levels of psychological capital help to decrease the development of envy, thus reducing unethical selling behaviors and turnover intentions while increasing customer orientation.
Practical implications
The study provides practitioners with insights into how to reduce envy by investing in the psychological capital of their salesforce. The study also provides suggestions for handling disruptions and managing envy to prevent actions that act to damage customer relationships.
Originality/value
Salespeople are likely to encounter organizational disruption. Sales managers need to be prepared to manage the outcomes of organizational disruption as it impacts the sales force. Understanding how disruptions impact customer relationships through envy is an important yet under-explored topic. This research adds to and expands the sales literature using cognitive appraisal theory to help address drivers of salesperson envy and its potentially negative impact on customer relationships and shows the required need to invest in psychological resources to offset these negative effects. The study also helps expand the recent focus on worldwide disruptions by adopting another context for disruption stemming from organizational disruption.
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Keywords
Yongchang Jiang, Hejie Zhu and E. Bai
The existence of the advertising delay effect and its impact on supply chain operations have been demonstrated in the current study. Therefore, this study develops a timely…
Abstract
Purpose
The existence of the advertising delay effect and its impact on supply chain operations have been demonstrated in the current study. Therefore, this study develops a timely inventory control strategy for the fresh produce supply chain to address the advertising delay effect in the fresh produce supply chain.
Design/methodology/approach
This study proposes a game model based on the Nerlove-Arrow time delay differential equation and Pontryagin's maximum principle. Through comparative analyses of the optimal equilibrium strategies, the authors compare the optimal equilibrium strategies, product goodwill and optimal inventory trajectories for suppliers and retailers under secondary replenishment decisions and decentralized decisions.
Findings
The authors find that (1) Only when the sales cycle meets certain conditions can the overall profit of the supply chain under the secondary replenishment decision be greater than that under the decentralized decision. As the price markup coefficient increases, the total profit of the supply chain first increases and then decreases. (2) With the increase in the delay time, the replenishment quantity during the initial period gradually decreases. After the delay time elapses, the inventory depletion rate under secondary replenishment decisions is faster than that under decentralized decision-making. (3) Although there is a continuously increasing maximum value of product goodwill with the increase in delay time, it becomes difficult to achieve this value for longer delays.
Practical implications
The authors’ findings provide a theoretical basis for supply chain members of fresh agricultural products to select replenishment and inventory control strategies when adopting different levels of delay in advertising marketing.
Originality/value
Firstly, this paper explains the impact of advertising delay effect on fresh produce supply chain from a dynamic perspective, and secondly, it provides guidance on advertising formulation and inventory replenishment for fresh produce retailers under the influence of advertising delay effect.
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Adah-Kole Emmanuel Onjewu, Richard B. Nyuur, Salima Paul and Yong Wang
Although recent literature has examined diverse measures adopted by SMEs to navigate the COVID-19 turbulence, there is a shortage of evidence on how crisis-time strategy creation…
Abstract
Purpose
Although recent literature has examined diverse measures adopted by SMEs to navigate the COVID-19 turbulence, there is a shortage of evidence on how crisis-time strategy creation behaviour and digitalization activities increase (1) sales and (2) cash flow. Thus, predicated on a novel strategy creation perspective, this inquiry aims to investigate the crisis behaviour, sales and cash flow performance of 528 SMEs in Morocco.
Design/methodology/approach
Novel links between (1) aggregate wage cuts, (2) variable operating hours, (3) deferred payment to suppliers, (4) deferred payment to tax authorities and (5) sales performance are developed and tested. A further link between sales performance and cash flow is also examined and the analysis is conducted using a non-linear structural equation modelling technique.
Findings
While there is a significant association between strategy creation behaviours and sales performance, only variable operating hours have a positive effect. Also, sales performance increases cash flow and this relationship is substantially strengthened by e-commerce digitalization and innovation.
Originality/value
Theoretically, to the best of the authors’ knowledge, this is one of the first inquiries to espouse the strategy creation view to explain SMEs' crisis-time behaviour and digitalization. For practical purposes, to supplement Moroccan SMEs' propensity to seek tax deferrals, it is argued that debt and equity support measures are also needed to boost sales performance and cash flow.
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Szu-Yu Kuo, Ya-Ling Kao, Jia-Wei Tang and Pei-Hsuan Tsai
Given the increasing intensity of highly competitive markets, this study aims to evaluate the effect of salespeople's emotional regulation, adaptive selling and customer-oriented…
Abstract
Purpose
Given the increasing intensity of highly competitive markets, this study aims to evaluate the effect of salespeople's emotional regulation, adaptive selling and customer-oriented behavior on sales performance.
Design/methodology/approach
A research model was tested by using a sample of 288 respondents from the logistics industry in Taiwan. Structural equation modeling was used to examine the relationships between emotional regulation, adaptive selling, job resourcefulness, customer-oriented behavior and sales performance.
Findings
The results indicate that emotional regulation, adaptive selling and job resourcefulness can improve customer-oriented behavior, and that customer-oriented behavior and job resourcefulness can enhance sales performance. By highlighting the role of job resourcefulness, the authors find a positive moderating effect among these four dimensions.
Originality/value
The findings can help salespeople integrate customer-oriented behaviors into strategic changes to regulate their own emotions and those of others to productively address and resolve difficult business conditions. The theoretical and managerial implications of this work's contributions to international logistics are also discussed.
Details
Keywords
Yongfu He, Harmen Oppewal, Yuho Chung and Ling Peng
This paper aims to study how price and sales level information influence consumer product perceptions and choices in online settings. It, in particular, tests whether displaying…
Abstract
Purpose
This paper aims to study how price and sales level information influence consumer product perceptions and choices in online settings. It, in particular, tests whether displaying sales level information increases consumer price sensitivity, which is a potential strategic risk to retailers.
Design/methodology/approach
Study 1 uses eBay data to investigate whether the interaction effects between price and sales level can be observed in an existing market. Study 2 involves online experiments across three product categories. Participants choose from product pairs that are shown with either the same or different prices and with no, the same or different sales levels.
Findings
Study 1 shows strong effects of a product’s displayed sales and price level on its daily sales but finds no interaction effect. Study 2 shows strong effects of price and sales levels on product choice but similarly finds no evidence that sales level information influences consumer price sensitivity, although it reveals an effect on quality perceptions. The results show how perceptions of quality, sacrifice and popularity mediate the effects of price and sales level information on product choice.
Research limitations/implications
Study 1 has limited control over prices and sales levels. Study 2 involves only hypothetical choices.
Practical implications
These findings indicate that businesses can use sales level information to manage consumer product quality perceptions and choices without having to be concerned that this will make consumers more price-sensitive.
Originality/value
To the best of the authors’ knowledge, this paper is the first to investigate how sales level information affects consumer responses to price differences in online contexts.
Details