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

P. Ronald Stephenson, William L. Cron, Gary L. Frazier

Journal of Marketing · 1979 · 49 citations · 0 references

Concepts

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.