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1 – 10 of over 70000

Abstract

Details

Economics of Art and Culture Invited Papers at the 12th International Conference of the Association of Cultural Economics International
Type: Book
ISBN: 978-0-44450-995-6

Article
Publication date: 31 July 2007

Tom Nagle and John Hogan

The article seeks to discuss how and why it is possible to motivate a sales force to follow the guidelines of a consistent pricing policy that promotes profitability and…

1275

Abstract

Purpose

The article seeks to discuss how and why it is possible to motivate a sales force to follow the guidelines of a consistent pricing policy that promotes profitability and increases margin, and which is beneficial to both providers and consumers of products and services.

Design/methodology/approach

Theories and examples stemming from the authors' research and experience with the subject matter are stated. The sales incentive theory in particular is supported by a specific formula that determines the sales credit someone would earn for making a sale based on profit contribution rather than price.

Findings

While employing flexible pricing policies in competitive markets is enticing for suppliers, it can ultimately lead to price erosion and falling margins. A sound pricing policy lets customers know that the price they are paying is related to the value they receive, and keeps salespeople from dealing with long, complicated negotiation processes. While many managers worry that their sales force won't accept such a change, most salespeople will adopt it if the new policy is implemented well. The key is to recompense salespeople for driving profitability instead of just revenue and sales volume.

Originality/value

This article addresses an ongoing problem that many companies face as they try to win and maintain business using flexible pricing policies to cut customer‐specific deals. It discusses how and why it is possible to change this behavior using sales incentives that reward profitable sales rather than just sales volume.

Details

Business Strategy Series, vol. 8 no. 5
Type: Research Article
ISSN: 1751-5637

Keywords

Article
Publication date: 10 May 2019

Sof Thrane, Martin Jarmatz, Michael Fetahi Laursen and Katrine Kornmaaler

The purpose of this paper is to analyze price decision-making through a practice-based approach. The paper investigates the micro-level practices used to arrive at sales

Abstract

Purpose

The purpose of this paper is to analyze price decision-making through a practice-based approach. The paper investigates the micro-level practices used to arrive at sales price decisions.

Design/methodology/approach

In this study, a qualitative study approach is used to develop findings abductively. The data are gathered through an in-depth case study at two firms: semi-structured interviews, meeting observations, shadowing and pricing documents.

Findings

This paper finds that pricing is a collective decision-making process involving multiple actors across the organization. The case firms work on solving information, coordination and control problems to arrive at sales prices by enacting interlinked practices. Pricing is therefore neither a structure nor a single decision but a process consisting of multiple micro-level practices that enable firms to make pricing decisions.

Originality/value

This paper develops a practice-based approach to pricing that conceptualize the micro-level practices used to to make pricing decisions in the face of information, coordination and control problems. The paper is interdisciplinary and adds to the accounting literature and the market literature, which have tended to study pricing as a decision made by one decision maker, and not as an organizational process where multiple actors share, evaluate, interpret and coordinate information and decisions.

Details

Qualitative Research in Accounting & Management, vol. 16 no. 1
Type: Research Article
ISSN: 1176-6093

Keywords

Article
Publication date: 8 August 2016

Rafay Ishfaq, Uzma Raja and Shashank Rao

The purpose of this paper is to evaluate the interaction between inventory availability (scarcity) and pricing levels (price-leadership (PL)), and its effect on product…

2015

Abstract

Purpose

The purpose of this paper is to evaluate the interaction between inventory availability (scarcity) and pricing levels (price-leadership (PL)), and its effect on product returns in the internet retail supply chain. Specifically, this paper investigates how supply chain managers can use inventory (seller-induced scarcity) and pricing (PL) levers to control product returns.

Design/methodology/approach

Empirical data of sales and product returns from an internet retailer is analyzed to identify the scale of the effect that product scarcity and PL has on product returns. These factors are considered in developing a sales-return process model which is used with empirical data in a simulation study. The study evaluates changes in product returns for different policy settings related to PL and inventory levels. Findings of the simulation study are validated using statistical analysis of empirical data.

Findings

PL and seller-induced product scarcity affect the rate of product returns; however, the scale of this effect depends on inventory and pricing decisions. The results identify an inflection boundary based on scarcity and PL levels which reverses this effect. This reversal is explained by underlying principles at play regarding buyers’ valuation of the sale and corresponding product attributes.

Practical implications

Supply chain managers in internet retail can leverage lower inventory under the seller-induced scarcity approach to improve revenues. However, reducing inventory levels beyond a threshold is counterproductive, due to an associated increase in product returns. Similarly, setting market competitive prices (PL) can help reduce product returns. Under the seller-induced scarcity condition, this effect is reversed for inventory levels below a threshold. Retailers can implement the methodology developed in this paper to identify the inventory-price threshold that can help increase revenues while keeping the rate of product returns at a manageable level.

Originality/value

This research extends prior work regarding the role of product scarcity and pricing on product returns and develops a deeper understanding of how these factors can be managed to control product returns in the internet retail setting.

Details

The International Journal of Logistics Management, vol. 27 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 12 September 2016

Anup Kumar, Amit Adlakha and Kampan Mukherjee

The purpose of this paper is to capture the dynamic variations in sales of a product based upon the dynamic estimation of the time series data and propose a model that…

2003

Abstract

Purpose

The purpose of this paper is to capture the dynamic variations in sales of a product based upon the dynamic estimation of the time series data and propose a model that imitates the price discounting and promotion strategy for a product category in a retail organization.

Design/methodology/approach

Time series data relating to sales has been used to model the sales estimates using moving average and proportional and derivative control; thereafter a sales forecast is generated to estimate the sales of a particular product category. This provides valuable inputs for taking lot sizing decisions regarding procurement of the products and selection of suppliers. A hybrid model has been proposed and explained with a hypothetical case, which considerably impacts the sales promotion and intelligent pricing decisions.

Findings

A conceptual framework is developed for modeling the dynamic price discounting strategy in retail using fuzzy logic. The model imitates sales promotion and price discounting strategy. This has helped minimize the inventory cost thereby keeping the profitability of the retail organization intact.

Research limitations/implications

There is no appropriate empirical data to verify the models. In light of the research approach (modeling based upon historical time series data of a particular product category) that was undertaken, there is a possibility that the research results may be valid for the product category that was selected. Therefore, the researchers are advised to test the proposed propositions further for other product categories.

Originality/value

The study provides valuable insight on how to use the real-time sales data for designing a dynamic automated model for product sales promotion and price discounting strategy using fuzzy logic for a retail organization.

Details

Industrial Management & Data Systems, vol. 116 no. 8
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 1 January 2005

Ron D'Andrea

To identify the keys to executing profitable sales negotiations based on analysis of the negotiation approaches of high‐performing salespeople.

3699

Abstract

Purpose

To identify the keys to executing profitable sales negotiations based on analysis of the negotiation approaches of high‐performing salespeople.

Design/methodology/approach

BayGroup International (a leading global sales consultancy) conducted a research study involving 2,000 salespeople at all levels from Fortune 500 companies across a wide range of industries. Respondents participated in an actual buy‐sell negotiation. BayGroup collected and analyzed data on the negotiation approaches taken by study participants, and determined how the approaches taken by the sales professionals who negotiated the best agreements differed from others in the study.

Findings

BayGroup concluded that high performers raise their customers’ perception of value by using six fundamental strategies, summarized in the form of principles of sales negotiation. The paper not only describes the principles, but also reveals the unique, counterintuitive manner in which high‐performing salespeople plan and execute profitable sales strategy.

Practical implications

Owing to increasing pressure to improve earnings (and share prices), value‐based sales negotiation has become more critical than ever to corporate success. Use of the research conclusions and analysis from this article can provide useful guidance to sales professionals and their managers on how to execute more profitable customer agreements throughout the sales process.

Originality/value

The importance of “selling value, not price” has been fully embraced by the world's leading sales organizations, but effective approaches to implementing behavioral change in this area have been rare. This paper presents provocative findings that suggest new ways to approach this critical strategic challenge.

Details

Industrial and Commercial Training, vol. 37 no. 1
Type: Research Article
ISSN: 0019-7858

Keywords

Article
Publication date: 1 June 2004

Erkki K. Laitinen

The study develops a mathematical model of the firm to derive theoretical foundations for the balanced scorecard concept (BSC). The model is based on several parts which…

1486

Abstract

The study develops a mathematical model of the firm to derive theoretical foundations for the balanced scorecard concept (BSC). The model is based on several parts which are integrated into a company model. This model includes the demand function, the production function and the objective function of the firm which are depicted by traditional microeconomic concepts. Demand is presented as a function of price and customer relationship management (CRM) costs. Production is assumed to depend on labor, capital, and development and learning (D&L) costs. Simple dynamics is included both in the demand and production function. The strategy of the firm is depicted by the objective function based on profit and net sales. The output variables of the model are classified as the four perspectives of BSC. The effects of the objectives (strategies) on the importance (shadow prices) of the constraints are analysed. It is shown that a change in the objectives may alter the order of their importance. Thus, a change in the strategy should be accompanied with a change in the focus of BSC. Furthermore, non‐financial and financial performance ratios may change in opposite directions, when the strategy is shifted towards revenue maximization. Thus, inconsistencies with the interpretation of cause and effects may emerge, when the strategy is shifted. Numerical examples are presented to demonstrate the results.

Details

Managerial Finance, vol. 30 no. 6
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 1 March 2003

Aman Ullah and Zhong‐guo Zhou

In this paper, we examine dynamic relationships among three housing market variables and a stock market index in a multivariate vector autoregressive error correction…

1455

Abstract

In this paper, we examine dynamic relationships among three housing market variables and a stock market index in a multivariate vector autoregressive error correction (VAREC) model. It is first found that, in the USA, sales and the median sales price of the existing single‐family homes and the 30‐year mortgage rate have unit roots, while the New York Stock Exchange (NYSE) value‐weighted portfolio returns appear random. Moreover, it is found that not only are three real estate variables cointegrated with one another but that they are also cointegrated with the stock index returns. After controlling for the unit root problem and cointegration, a multivariate VAREC model is further developed to examine dynamic relationships among the four variables using Johansen’s approach. It is found that the price, mortgage rate, and stock returns affect sales. It is found that the mortgage rate and stock returns affect the price. The 30‐year mortgage rate is affected by sales and the stock returns. Except for the mortgage rate which is negatively correlated with the stock returns, significant evidence is not found that sales and the median sales price affect the stock returns directly.

Details

Property Management, vol. 21 no. 1
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 2 March 2020

Yong Liu, Xiaoying Wang and Wenwen Ren

This paper attempts to analyze the relationship between the complementarity degrees of imperfect complementary products and sales strategies and give appropriate sales

Abstract

Purpose

This paper attempts to analyze the relationship between the complementarity degrees of imperfect complementary products and sales strategies and give appropriate sales strategies for a two-stage supply chain.

Design/methodology/approach

With respect to two-stage supply chain consisting of two manufacturers who produce imperfect complementary products and one retailer who sells the products, aiming at bundling sales strategy, the authors define complementarity elasticity of products and use it to measure the degree of complementary between two products. Based on Stackelberg game and cooperation, the authors analyze the relationship between the complementarity degrees of imperfect complementary products and appropriate sales strategies.

Findings

As the impact of complementarity degree on sales strategy decision-making is better, the authors can pinpoint out which sales decision-making is optimal and which bundling sales strategy is the best for a two-stage supply chain. Considering that the degree of complementarity has a significant impact on the product sales strategy, the authors can point out which sales decision-making is optimal, that is, which bundled sales strategy is the optimal in the secondary supply chain of selling complementary products.

Practical implications

An innovative bundling can expand the sales of existing products and new products. It helps a retailer transcend and defeat competitors by reducing marketing expenses while increasing profits. Proper use of bundling can improve consumers utility and create an overall positive effect for both the enterprises and consumer.

Originality/value

The research can help some retailers to make many appropriate bundling sales strategies.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 20 April 2015

Mary Ann Stamsø

The purpose of this paper is to examine the widespread of property sellers choosing to sell by themselves or through an estate agent, what characterises them and the…

1072

Abstract

Purpose

The purpose of this paper is to examine the widespread of property sellers choosing to sell by themselves or through an estate agent, what characterises them and the reason for their choice. In addition the paper contains comparisons of the gap between sales price and asking price between the sales methods and satisfaction with the sales process. This study is the first study of these phenomena carried out in Norway.

Design/methodology/approach

The data used for this study was obtained from a national survey including 1,649 house sellers. A logistic regression analysis is used to analyse the impact of household’s characteristics on the sales method.

Findings

The main findings of this study are that 83 per cent of the house sellers used an estate agent through the whole sales process and differences in the choices are related to urbanisation, age and education. The most important reason for preferring a real estate broker is that doing the sale on your own is considered too much work. Conversely, the most important reason for doing the sale on your own is that estate agents are too expensive. Those selling without an estate agent were more satisfied and the gap between sales price and asking price was smaller than for those selling through a real estate broker.

Originality/value

Issues concerning competition within the market for estate agents should be central topics for property management. Property sellers selling their property by themselves are an important contribution to increase the competition in the market for estate agents. This issue has not been on the agenda in Norway, or in Europe, in the same way as in the USA. This is probably due to the complexity in the legislation and strict laws within property sales in Central and Southern Europe. However, in Norway, UK and in the Nordic countries, the legal system is not complicated. It is rather the lockout of private individuals from the housing web sites and the fact that the property sellers are not familiar with this kind of transaction that has prevented property sellers to sell their house by themselves. Today Norway is one of few countries with a booming housing market, which also has increased the commission for estate agents. From 2010 private individuals got access to advertise their house on the housing web sites in Norway. These have influenced the focus on alternative sales methods.

Details

Property Management, vol. 33 no. 2
Type: Research Article
ISSN: 0263-7472

Keywords

1 – 10 of over 70000