Reputation Management as a Motivation for Sales Structure Decisions

Journal of Marketing, Vol. 63, pp. 74-89, October 1999

Posted: 11 Mar 2007

See all articles by Allen M. Weiss

Allen M. Weiss

University of Southern California - Marketing Department

Erin Anderson

INSEAD - Marketing

Deborah J. MacInnis

University of Southern California - Marketing Department

Abstract

The authors examine whether reputation concerns affect how manufacturers structure their sales organization. Using reputation theory, they examine whether reputation-related perceptions and beliefs affect whether a manufacturer that currently uses an outside selling organization {i.e., a rep) intends to vertically integrate the selling function or switch to a new rep. In particular, they propose that a manufacturer's intentions to replace its current manufacturers' rep with a company sales force or a different rep is a function of its perceptions of the reputation of itself and the rep and its beliefs about how high-reputation manufacturers in the industry typically organize their selling function. Survey data support the plausibility of these reputation-based arguments as factors that influence sales organization structure decisions. These results provide some important extensions to reputation theory. The authors discuss the study's implications for both managerial behavior and the literature on channels and organizational governance.

Keywords: reputation, sales structure

Suggested Citation

Weiss, Allen M. and Anderson, Erin and MacInnis, Deborah J., Reputation Management as a Motivation for Sales Structure Decisions. Journal of Marketing, Vol. 63, pp. 74-89, October 1999. Available at SSRN: https://ssrn.com/abstract=969759

Allen M. Weiss (Contact Author)

University of Southern California - Marketing Department ( email )

Hoffman Hall 616
Los Angeles, CA 90089-1427
United States

Erin Anderson

INSEAD - Marketing ( email )

Boulevard de Constance
Fontainebleau, 77305
France
+33 1 6072 4000 (Phone)
+33 1 6074 5500/01 (Fax)

Deborah J. MacInnis

University of Southern California - Marketing Department ( email )

Hoffman Hall 701
Los Angeles, CA 90089-1427
United States

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