Bonuses versus Commissions: A Field Study

  title={Bonuses versus Commissions: A Field Study},
  author={Sunil Kishore and Raghunath Singh Rao and Om Narasimhan and George John},
  journal={Journal of Marketing Research},
  pages={317 - 333}
Quota-based bonuses and commissions are the two most common incentive compensation plans. The authors uncover differential effects of these plans from a natural field-based experiment featuring 14,000 monthly observations over three years from 458 sales territories of a pharmaceutical firm that switched from a bonus plan to an equivalent commission plan. The intervention led to significant sales productivity improvement; this effect was heterogeneous across ability deciles, with much larger… 

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