Inducing salespeople to sell proprietary products: The roles of traditional, transaction -cost, and relational factors

Two frameworks finding increasing application in the marketing literature are relationship marketing (RM) and transaction cost analysis (TCA). Both have been applied to decision-making in an exchange context, investigating similar issues such as salesperson motivation. To date, there has been little overlap of the two frameworks, either in theory or research. Relational factors, such as trust and commitment, usually absent in TCA-based models of decision-making (which treats them largely as “friction,” rather than as explanatory variables). Conversely, TCA factors are rarely considered in relational models. However, some researchers, rather than view RM and TCA as competitors, argue for combining the two frameworks in the same model (Zaheer and Venkatraman 1995; Hesterly, Liebskind, and Zenger 1990; Granovetter).;This research integrates constructs from both frameworks and investigates a salesperson's decision to adopt proprietary or house-branded products. The dissertation (1) models hug and commitment in organizations, (2) compares this relational model to a TCA-based model, (3) further develops a model incorporating both relational and TCA factors, and (4) tests this comprehensive model using data from a sample of ethical drug distribution salespeople.;This research focuses on the effects of TCA factors and of relational factors on the sales of proprietary products. The hypotheses are that the TCA hazards reduce sales efforts, but that relational factors attenuate this effect. The effects of relational factors and of TCA factors on sales motivation have been studied in a variety of contexts. In this study, in this context, neither the TCA factors nor the relational factors were found to contribute to the adoption of proprietary products by salespeople.