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Sales Performance and Social Preferences

Author

Listed:
  • Andrea Essl
  • Frauke von Bieberstein
  • Michael Kosfeld
  • Markus Kröll
Abstract
We use an incentivized experimental game to uncover heterogeneity in other-regarding 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

  • Andrea Essl & Frauke von Bieberstein & Michael Kosfeld & Markus Kröll, 2018. "Sales Performance and Social Preferences," CESifo Working Paper Series 7030, CESifo.
    • Handle: RePEc:ces:ceswps:_7030
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    References listed on IDEAS

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    Cited by:

    1. von Bieberstein, Frauke & Essl, Andrea & Friedrich, Kathrin, 2020. "Gain versus loss contracts: Does contract framing affect agents’ reciprocity?," Economics Letters, Elsevier, vol. 187(C).
    2. Frauke Bieberstein & Jonas Gehrlein & Anna Güntner, 2020. "Teamwork revisited: social preferences and knowledge acquisition in the field," Journal of Business Economics, Springer, vol. 90(4), pages 591-614, May.

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    More about this item

    Keywords

    other-regarding preferences; sales performance; experimental games;
    All these keywords.

    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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