The Ruppert Company needed to build market share quickly. To motivate sales growth, Ruppert installed a straight
Question:
The Ruppert Company needed to build market share quickly. To motivate sales growth, Ruppert installed a straight commission compensation plan: The more the sales reps sold, the more they made. This strategy seemed to work—sales volume climbed and the Ruppert Company captured more market share. After two years on this program, sales growth flattened out and Ruppert began to lose market share. Sales reps continued to earn $85,000 to $90,000 on average in commissions through developing and penetrating current key accounts in their territories. Studies showed the sales force was not overworked and further territory penetration was clearly possible. What do you think was happening?
Step by Step Answer:
Sales Force Management Leadership Innovation Technology
ISBN: 9781138951723
12th Edition
Authors: Mark W. Johnston, Greg W. Marshall