This paper presents two dynamic models, from the views of the company and its heterogeneous sales forces respectively, to find the principles of designing an effective bonus scheme for a monopolist. We obtain: (i) the increases of the sales potential elasticity may cause the decreases of the terminal sales volumes and the bonus scheme’s change rate; (ii) the relationship between the sales forces’ unit cost of product and the sales potential elasticity for the starting point of bonus scheme; (iii) the influences of the sales forces’ and the company’s markup limits on the terminal sales volumes and the change rate of bonus scheme; (iv) the management can shorten the time horizon for a higher discount rate or a lower change rate of bonus scheme.
關聯:
Journal of information & optimization sciences 16(3), pp.501-515