Dirkjan: Created page with "The transaction cost theory as it applies to sales incentives tells the following: {| class="wikitable" |Assumption |Market control mechanisms are more efficient than bureauc..."

2020-08-25T10:30:33Z

Created page with "The transaction cost theory as it applies to sales incentives tells the following: {| class="wikitable" |Assumption |Market control mechanisms are more efficient than bureauc..."

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The transaction cost theory as it applies to sales incentives tells the following:

{| class="wikitable"
|Assumption
|Market control mechanisms are more efficient than bureaucratic ones
|-
|Favours
|Outsourced sales force
|-
|Problem
|Markets can fail and therefore must be looked into (see below)
|-
|Solution
|If any of the problems exist, insource the sales force
|-
|}
Problems:
* '''Asset specificity'''
** Capabilities need to sell the product and that cannot easily be used for other products and services
* '''Safeguard problem'''
** Sales people can take advantage of the specific knowledge they receive as resellers
* '''Transaction frequency'''
** High transaction volumes are more cost efficient in an hierarchical organisation.
[[Category:sales]]

[[Category:M20]]

[[Category:Term]]

Transaction Cost Theory - Revision history

Dirkjan: Created page with "The transaction cost theory as it applies to sales incentives tells the following: {| class="wikitable" |Assumption |Market control mechanisms are more efficient than bureauc..."