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Delegating Pricing Authority to the Sales Force: The Effects on Sales and Profit Performance

Journal of MarketingPublished 1 March 1979
P. Ronald Stephenson, William L. Cron, Gary L. Frazier
Citations116
SJR quartileQ1
SJR score13.39
SNIP5.22

Abstract

A long-standing marketing question is whether sales personnel should be given authority to set prices. The marketing literature contains theoretical support for the practice. This article, however, presents research results that argue the opposite. Among a sample of 108 firms, those giving salespeople the highest degree of pricing authority generated the lowest sales and profit performance.

Keywords

Business, Management and Accounting