The Role of Satisfaction with Territory Design on the Motivation, Attitudes, and Work Outcomes of Salespeople

Abstract

The primary emphasis of previous research concerning salespeople has been focused on their attitudes and behavior. The relationship between organizational variables and salesperson attitudes and behavior has received very limited attention. Sales territory design is largely uncontrollable by the salesperson, yet is acknowledged by managers and researchers as an important factor enabling salespeople to perform well. The objective is to examine satisfaction with territory design from the perspective of the salesperson. A conceptual model and hypotheses are developed linking the satisfaction with territory design with role ambiguity, intrinsic motivation, job satisfaction, and performance. Role conflict, met expectations, organizational commitment, and intention to leave are also included in the model. Survey results provide strong support for 19 of the 21 hypotheses examined. The findings offer significant insights concerning the role of territory design satisfaction in face-to-face selling and its consequences. Several managerial implications and avenues for future research are discussed.

Clustering the mediators between the sales control systems and the sales performance using the AMO model: A narrative systematic literature review

“…Behavior-based control resulted in higher levels of satisfaction with the sales territory design and this satisfaction enhances sales organization effectiveness, and salesforce behavioral and outcome performance (Babakus et al, 1996;Baldauf & Cravens, 1999;Grant, Cravens, Low & Moncrief, 2001;Piercy, et al, 2004a).…”

“…Job satisfaction Degree to which an employee is satisfied or happy with the job including all characteristics of the job and its environment, which salespeople find rewarding, fulfilling and satisfying, or frustrating and unsatisfying (Grant, Cravens, Low, & Moncrief, 2001). Job tension / role stress / job related tension Extent to which workers are bothered by work features, such as job evaluations and achievement of performance goals (Challagalla & Shervani, 1997;Lusch & Jaworski, 1991).…”

“…Consequently, sales managers should evaluate the adequacy of each design, by determinating the satisfaction in the salesforce from regular feedback in meetings and reports. If satisfaction is low, the sales manager should assess if salesperson's perception is correct and act accordingly, either to redesign the territory, or to clarify misperceptions (Grant et al, 2001). Improving a faulty territory design may have a larger impact in sales results than other mediators, and this new design will influence positively on motivation, as better designs increase the salesperson's chances to perform well (Grant & Cravens, 1999).…”

Measuring sales performance of home décor products

“…The TD is a major determinant of a salesperson ' s opportunity to perform well, and their ability to earn incentive pay where incentives are linked directly to territory-level individual performance ( Grant et al , 2001 ). Sales personnel in the more effective sales units display higher levels of intrinsic and extrinsic motivation, sales support orientation and customer orientation.…”

Organisational buying and sales administration in the retail sector

“…The territory design is a major determinant of salespeople ' s opportunity to perform well, and their ability to earn incentive pay where incentives are linked directly to territory-level individual performance ( Grant et al ., 2001 ). It has been observed that organisations may not defi ne salespeople ' territories based on mutually exclusive geographical areas.…”