IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v5y1986i2p159-168.html
   My bibliography  Save this article

Technical Note—Delegating Pricing Responsibility to the Salesforce

Author

Listed:
  • Rajiv Lal

    (Stanford University)

Abstract

In this paper, we use an agency theory framework to address the issue of delegating pricing responsibility to the salesperson. In this analysis, it is shown that delegating the pricing responsibility to the salesperson is as profitable as centralization when the salesperson and the sales manager have identical information about the selling environment; but delegation may be more profitable when the saleperson's information is superior to that of the sales manager's. It is also argued that this characteristic is typical of market conditions where we observe delegation of such responsibility in cases identified by Weinberg (Weinberg, C. B. 1975. An optimal commission plan for salesman's control over price. (8, April) 937–943.) and Stephenson, Cron and Frazier (Stephenson, P. R., W. L. Cron, G. Frazier. 1979. Delegating pricing authority to the salesforce: The effects on sales and profit performance. (April) 21–28.).

Suggested Citation

  • Rajiv Lal, 1986. "Technical Note—Delegating Pricing Responsibility to the Salesforce," Marketing Science, INFORMS, vol. 5(2), pages 159-168.
    • Handle: RePEc:inm:ormksc:v:5:y:1986:i:2:p:159-168
    DOI: 10.1287/mksc.5.2.159
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.5.2.159
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mksc.5.2.159?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:5:y:1986:i:2:p:159-168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.