Measuring the Effectiveness of Salespeople: Evidence from a Cold-Drink Market

Haofeng Jin & Zhentong Lu
"Salespeople are widely employed in many industries. Zoltners, Sinha and Lorimer (2008) conservatively estimate that US companies spend $800 billion on salespeople each year—close to three times the amount spent on advertising. However, due to lack of field data, direct empirical evidence on the effectiveness of salespeople is scarce. We leverage a unique data set on retail sales from a leading Chinese cold-drink manufacturer and information on the firm’s salespeople assignment rule to measure the...
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