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Sales Performance and Social Preferences

Author

Listed:
  • Essl, Andrea

    () (University of Bern)

  • von Bieberstein, Frauke

    () (University of Bern)

  • Kosfeld, Michael

    () (Goethe University Frankfurt)

  • Kröll, Markus

    ()

Abstract

We use an incentivized experimental game to uncover heterogeneity in otherregarding preferences among salespeople in a large Austrian retail chain. Our results show that the majority of agents take the welfare of others into account but a significant fraction reveals self-regarding behavior. Matching individual behavior in the game with firm data on sales performance shows that higher concern for others is significantly associated with higher revenue per customer. At the same time, it is also associated with fewer sales per day. Both effects offset each other, so that the overall association with total sales revenue becomes insignificant. Our findings highlight the nuanced role of self- vs. other-regarding concerns in sales contexts with important implications for management and marketing research.

Suggested Citation

  • Essl, Andrea & von Bieberstein, Frauke & Kosfeld, Michael & Kröll, Markus, 2018. "Sales Performance and Social Preferences," IZA Discussion Papers 11505, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp11505
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    References listed on IDEAS

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    More about this item

    Keywords

    other-regarding preferences; sales performance; experimental games;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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