Quotas Topic Guide
This topic guide contains articles centered around the topic of Quotas. the information contained here is based on the Marketing course: Sales Management and is provided as according to the course outline.
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A CASE HISTORY OF SALES QUOTAS. Some full text available
The article discusses the methods implemented by Economy Grocery Stores Corp. to increase the sale of bread products in its full-service and self-service grocery stores. The improvements were called for in order for the company to transition all the full-service stores into self-service stores. To improve the sales of bread products, sales quotas were assigned based on the volume and size of the store. It was found that while not all stores met the quota, they all did improve the sales of bread products. Furthermore, the self-service stores performed much better than the full-service stores.
note: Article
China takes all? An empirical study on the impacts of quota elimination on world clothing trade from 2000 to 2009 Some full text available
Purpose– The purpose of this paper is to empirically investigate the impacts of quota elimination on the world clothing trade.

Design/methodology/approach– Multivariate analysis of variance (MANOVA) was undertaken based on trade statistics of 51 clothing exporters from 2000 to 2009 provided by the World Trade Organization (WTO).

Findings– First, exporters’ performances in response to quota elimination overall were suggested unequal among countries located in different geographic regions of the world. Second, clothing exporters located in different geographic regions were suggested having unequal results of compound annual growth rate from 2005 to 2009 and market share changes from 2000 to 2009. Third, it was suggested that European countries were achieving faster clothing export growth from 2005 to 2009 and more market share gains from 2000 to 2009 than the rest of the world; and that China was also achieving more market share gains from 2000 to 2009 than other clothing exporters.

Research limitations/implications– Although China once again was suggested as one of the largest beneficiaries of quota elimination, the paper's findings remind us that neither China's gains nor some other countries’ losses should be exaggerated. The findings also call attention to the influence of geographic location as a key factor shaping the pattern of the world clothing trade in the post‐quota era. Also, the findings suggest special care be given to African clothing exporters in the future.

Originality/value– The paper evaluates the real impacts of quota elimination on the world clothing trade by taking a global perspective based on updated data.
note: Article
Sales contests versus quotas with imbalanced territories. Some full text available
This paper studies the consequences of sales contests versus quota systems when territories have imbalanced sales potential. How do the optimal sales, efforts of salespeople, and profits vary with territory imbalance in a sales contest and how do these change if compensation is based upon quotas? Our major result is that territory imbalance has a differential effect: it hurts a contest more than a quota. In a sales contest, the salesperson in the stronger territory only need to mimic the effort of the salesperson in the other territory to maximize compensation, but this implies that the salesperson in the weaker territory will shirk relative to a quota system. Handicapping the contest to correct for territory imbalance overcomes its disadvantage vis-à-vis the quota plan, but this is seldom incorporated into sales contests.
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Sales Force Participation in Quota Setting and Sales Forecasting. Some full text available
The article reports on a study that investigated sales force participation in sales quota setting and sales forecasting in different companies based in the U.S. In addition to quota setting and forecasting, the study also deals with variables including compensation packages for sales personnel, salary level, and commission. The results of the study suggest that managers who keep sales personnel informed about company plans experience the most accurate quota estimates.
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Selecting Appropriate Sales Quota Plan Structures and Quota-Setting Procedures. Some full text available
The typical objective of a sales quota-bonus plan (QBP) is to enhance salespeople's performance by granting them a bonus when they reach a prespecified performance level (a sales quota), set higher than the performance level they would achieve otherwise. Even though QBPs are short-term plans, they have long-run profit impacts through their effects on a sales force morale and feelings of equity (or inequity). This is why devising sales quota plans has always been a difficult task. This papers objective is to discuss how different QBP structures and related quota setting procedures are likely to be selected by management, depending on such situational characteristics as management's objectives, constraints, and available (or collectible) information.
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Selling and Sales Management in Action: Attitudes and Applications of Quotas by Sales Executives and Sales Managers. Some full text available
A survey of 186 sales managers and executives revealed that in setting sales quotas, factors such as the sales territory and the support provided by the manager were considered more important than the past performance of the sales representative. As would be expected, in an inspection of general opinions about sales quotas, the managers demonstrated a preference for linking the sales quota to the compensation of the salesperson.
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Setting Sales Quotas with Conjoint Analysis. Some full text available
On the basis of a theoretical model of salesperson behavior, the author proposes an operational procedure in which conjoint analysis is used to determine sales quotas optimal for the company and acceptable to each salesperson.
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Setting Sales Quotas. Some full text available
Sales quotas need not be set intuitively or by hit or miss "we've got to beat last year's figures" systems. There is a whole arsenal of proved statistical procedures which the businessman can use as weapons in his war against sales resistance.
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Strategy-proof, efficient, and nonbossy quota allocations. Some full text available
We consider the problem of designing a mechanism to allocate objects to agents when each agent has a quota that must be filled exactly. Agents are assumed to have responsive preferences over items. We show that the only strategy-proof, Pareto optimal, and nonbossy mechanisms are sequential dictatorships. We also show that the only strategy-proof, Pareto optimal, nonbossy, and neutral mechanisms are serial dictatorships. Since these negative results hold for responsive preferences, they hold for more general preferences as well.
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The Effect Of Product Sales Quotas on Sales Force Productivity. Some full text available
This article describes an actual controlled experiment to test the validity of the Davis-Farley sales compensation model. Results indicate that the implicit assumption of the model that salesmen seek to maximize income needs additional study.
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The impact of sales quotas on moral judgment in the financial services industry Some full text available
Because sales people operating under an outcome‐based control system are likely to be motivated by self‐interest, sales quotas are believed to drive salespeople to perform unethical behavior, particularly if this behavior is deemed necessary to achieve quota. Accordingly, this article examines the relationship between perceived quota difficulty and moral judgment. Two factors potentially moderating this relationship, ethical climate and consequences for not making quota, are also considered, as well as the influence of market attractiveness and self‐efficacy on quota difficulty. The analysis indicates a significant relationship between quota difficulty and moral judgment when salespeople foresee negative consequences for failing to achieve quota. Further, self‐efficacy and market attractiveness affected perceived quota difficulty. Implications of the study are offered.
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The Motivational Impact of Sales Quotas on Effort. Some full text available
A conceptual framework is presented that resolves some of the conflicts and inconsistencies in the various paradigms pertaining to goal setting. Hypotheses about the impact of quota level, expectancy, and self-efficacy on motivation are developed and tested in a laboratory experiment in which the subjects assume the role of salespersons and negotiate with opponents whose roles are simulated by a custom-designed computer program. The results indicate that as quota level is increased, effort increases only up to a point, after which increases in the level of the quota may actually decrease effort. Additionally, the impact of increased quota levels is stronger for subjects who are high in self-efficacy than for subjects who are low in self-efficacy. Finally, information about the level of task difficulty also influences the motivation to expend effort at the task.
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The Political Economy of Fishery Reform Some full text available
Despite compelling evidence that property rights–based management can improve the economic and ecological performance of fisheries, reform proposals are often met with political opposition. Moreover, the opposition sometimes comes from incumbent fishermen and fishing communities that would ostensibly gain the most from rent-enhancing reforms. We flesh out this puzzle by describing the political economy of past and present institutional changes in North America such as bans on fish traps, limited-entry regulations, and individual transferable quotas (ITQs). Our review identifies patterns of distributional concerns surrounding property rights; many of the same groups that opposed limits on entry and fish traps also oppose ITQs. We provide examples of how political opposition to ITQs is mollified by modifications in program design, although these design compromises may have efficiency costs. We conclude by pointing to the need for more research on equity-efficiency trade-offs and for greater attention to fishermen heterogeneity in economic analysis.
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Understanding sales quotas: an exploratory investigation of consequences of failure Some full text available
Sales quotas typically “drive” sales organizations. As such, the ability of the sales organization, both individually (the salesperson) and the group (the total collection of the sales professionals), to accomplish its quota has a significant impact on the performance of the sales and marketing organization, as well as the entire firm. Within the context of this use, quotas represent a critical sales goal, although very little is actually known about their strategic or operational use within marketing organizations. The purpose of this paper is to investigate quotas from a strategic and operational perspective to provide additional insight into understanding sales quotas. Specifically, this manuscript investigates the consequences of failing to achieve quota and the relationship between these consequences and salesperson performance, salesperson income, and the firm’s annual sales revenue. In addition, the relationship between these variables and quota difficulty, and quota performance are explored.
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Electronic Databases

EBSCOhost for Quota topic guide Some full text available
Provides full-text, abstracted and indexed lournals from from all branches of science, technology, medicine, social sciences and humanities. Also providing exhaustive information on the topic of sales quotas
note: Electronic Database


International Trade in Natural Resources: Practice and Policy Some full text available
Natural resources account for 20% of world trade and dominate the exports of many countries. Policy is used to manipulate both international and domestic prices of resources, yet policy is largely outside the disciplines of the WTO. The instruments used include export taxes, price controls, production quotas, and domestic producer and consumer taxes (equivalent to trade taxes if no domestic production is possible). We review the literature and argue that the policy equilibrium is inefficient. This inefficiency is exacerbated by market failure in long-run contracts for the exploration and development of natural resources. Properly coordinated policy reforms offer an avenue to resource-exporting and resource-importing countries to overcome these inefficiencies and to obtain mutual gains.
note: Journal


Sales Management Some full text available
This book essentially covers sales management as a subject. with chapters that look at the history of sales management. Also here we explore the entire sales process from identifying the product to identifying the target market right through to marketing the product and eventually selling it.Topics such as the marketing strategy, sales quotas, market evolution, and plenty more are looked at under this title.
note: E-book
Sales Management with Personal Selling - Salesmanship Some full text available
The book "Sales Management with Personal Selling - Salesmanship" focuses on all aspects of management of sales. Covering over 34 different facets of Sales Management, including a specific chapter on Sales Quotas. Also provides a wide range of case studies to aid in the appreciation of the subject.
note: E-book

Open Access Resources

Assessing the Relationship between Sales Quotas and Moral Judgement of Insurance Salespersons: The Moderating Effects of Personal Moral Values, Quota Failure Consequences, and Corporate Ethical Climate Some full text available
There is an increasing call for managers in the Nigerian insurance industry to espouse higher level of ethical behavior to earn the trust of customers, regulatory agencies, and other stakeholders. Arguably, this will enhance market penetration, increase patronage and higher level of profit. Theoretically however, ethical behavior can be institutionalized in organizations if the top management support ethical behavior through punishment and reward (high ethical climate). Other than corporate ethical values, managers’ beliefs about the rightness and wrongness of an action in a particular situation could also be a function of his/her personal moral philosophy. With respect to financial services, one aspect of marketing which have been empirically shown to have influence ethical judgement and behaviors of managers is sales quotas. When salespersons are assigned higher sales quotas, which are perceived as difficult, the tendency to engage in unethical behavior to achieve this target becomes higher. In this study, we assess and extend the theoretical relationship between moral judgement of salespersons and perceived quota difficulty in the insurance industry. The study also explores the moderating effects of salesperson’s ethical values (idealism and relativism), corporate ethical climate, and quota failure consequences on the proposed relationship. With a structured questionnaire, data was collected from respondents in the target industry through a multi-stage sampling strategy. Exploratory factor analysis was performed to assess the factorial structure of the measures used in the study, their reliability and validity. Using correlation and regression analysis, the results were presented and discussed with managerial implications for the Nigerian insurance industry. 
note: Open Access Resource
At no previous time have sales managers faced more opportunities and challenges. They will have to adapt to some dramatic trends like increased buyer expertise, rising customer expectations, intense foreign competition and revolutionary developments in communications and computer technology and the influx of women and minorities into sales careers. Adaptation to these trends involve increased understanding of the interdependent functions of sales and marketing. Field sales managers and the headquarters marketing team will require better understanding of each others responsibilities. Among the most important areas of expertise that the effective sales manager will need to develop are better understanding of buyer behavior, better motivational and leadership skills, more awareness of technological interfaces, and superior managerial and interpersonal skills. The objective of this thesis is to locate and explain the important characteristics required for a successful sales manager, which includes the explanation for why the sales manager needs to understand and develop skills for - general management, structuring the sales force, strategic planning to design the sales territories that increase sales, recruiting the best talents, training other sales people, and applying the latest developments in human motivation and leadership skills. The investigation has been accomplished through a literature review of research done over the years on the topic of sales management. Then with the help of those articles, arguments have been made about how and why each of those characteristics is important for success and then a conclusion has been drawn about the level of importance of each of those characteristics. The various aspects of sales management include understanding the importance of personal selling, strategic planning, strategic trends, sales force organization, sales force selection and training, selecting effective combination of motivational tools, amount of supervision needed, purposes of budgeting, sales quotas and effective compensation packages. Of these the ones that have been found and explained to be critical to the sales manager’s success are recruiting training and good motivational and leadership skills. Future challenges for sales managers are in handling a diverse workforce of different races and nationalities. Motivation being a very inherent part of sales manager’s job, the source of motivation is found to be different for people from different regions of the world.
note: Open Access Resource


Organisational capabilities for enhancing the sales quotas development process outcomes for pharmaceutical sales forces Some full text available
The improvement of the sales quotas development process in Spanish pharmaceutical organisations is challenging as the market environment becomes dramatically complex. Setting sales quotas has always been difficult, exemplified by the difficulties in quantifying future sales by sales territory. Extensive research has been conducted and several conceptual models created to facilitate the process of developing sales quotas. Effective management of this process has proved problematic mainly due to difficulties in estimating future sales by territory, the complexity of the systems utilised in the process, the granularity of the data required and the lack of attention to implementation issues. Therefore, determining organisational capabilities that facilitate developing an effective sales quotas process is paramount. This study uses goal setting theory to understand organisational capabilities for the sales quota development process. A sales quota development process for a mid-sized pharmaceutical organisation was examined in terms of activities, which satisfied stakeholders’ expectations. Based on empirical data organisational capabilities were identified and prioritised. Goal setting theory is advanced through the development of the SQD Model that includes a set of sixteen organisational capabilities that are critical for developing an effective sales quotas process for pharmaceutical organisations. This study created the SQP Maturity Framework, a diagnostic tool that allows organisations to assess their sales quota development process and understand which capabilities to acquire or further develop to improve the process. Differences by organisational contexts are highlighted. The focus of this research is the pharmaceutical sector in Spain. The organisational capabilities uncovered and assessed will be relevant to these and other sectors that rely on sales forces. Areas for future research include the replication of this study in different geographies and sectors focusing on identifying more organisational capabilities and routines that facilitate moving organisations towards an optimised level of maturity.
note: Dissertation/Thesis


Sales plans for 2016 Some full text available
This newspaper article by Graphic Online outlines how every salesperson must plan their sales strategy and goals. Basing his argument on the SMARTER model: Specific, Metric, Attainable/Action plan, Realistic, Time-bound, Ethical, and Resourced.
note: Newspaper
Setting Sales Quotas Is Like Running A 10K Race Some full text available
This Newspaper article by "Techcrunch" makes a comparison between a marathon race and setting quotas. reaching the conclusion that as in marathons, the more information captured the easier it becomes to set new targets and to improve on old targets.
note: Newspaper - International
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