Spring 2009

Anne Coughlan, Professor of Marketing
Northwestern University

Previously hosted on Friday, April 17, 2009 in Cornell Hall.
 
This research demostrates that the interaction between territory allocation and sales compensation strongly affects the firm’s profitability. Applying agency theory, the negative or positive correlation across territory outcomes; differences in sales potentials; the agency problem with risk-averse salespeople; and the availability of both individual commission and group commissions or tournaments are investigated. The implications of various combinations of these variables will be explored.

Dr. George John 
General Mills - Gerot Chair in Marketing
Carlson School of Management
University of Minnesota

Hosted Wednesday, March 18, 2009, Cornell Hall. 

Dr. George John examines the question: Why do manufacturers create diverse multi-channel networks (such as concurrently using company-owned stores, franchised dealers, and independent outlets) to serve their customers? How can the manufacturer ensure that each type of channel effectively acquires customers and serves those customers well? Econometric methods are used to estimate a moral hazard model which sheds light on these questions.