Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 304

Search results for: C. A. R. Sales

304 Characteristics of Successful Sales Interaction in B2B Sales Meetings

Authors: Ari Alamäki, Timo Kaski

Abstract:

The value of co-creation has gained much attention in sales research, but less is known about how salespeople and customers interact in the authentic business to business (B2B) sales meetings. The study presented in this paper empirically contributes to existing research by presenting authentic B2B sales meetings that were video recorded and analyzed using observation and qualitative content analysis methods. This paper aims to study key elements of successful sales interactions between salespeople and customers/buyers. This study points out that salespeople are selling value rather than the products or services themselves, which are only enablers in realizing business benefits. Therefore, our findings suggest that promoting and easing open discourse is an essential part of a successful sales encounter. A better understanding of how salespeople and customers successfully interact would help salespeople to develop their interpersonal sales skills.

Keywords: personal selling, relationship, sales management, value co-creation

Procedia PDF Downloads 242
303 Interactive Systems in B2B Marketing: Perceptions of Sales Configurator Use

Authors: Tommi Mahlamaki, Mika Ojala

Abstract:

Digitalization is changing our lives in many ways. As consumers, we are accustomed using different online interactive sales systems. However, while many online selling sites offer systems that have evolved from simple selling functions, the change has not been as rapid in business-to-business (B2B) markets. This is because many B2B companies rely on personal sales and personal communication. The main objective of this research is to clarify perceptions towards digital interactive sales systems and, more specifically, sales configurators. It also aims to identify trends towards the use of sales configurators. To reach these objectives, an online questionnaire was created that targets Finnish B2B distributors who are, by definition, part of B2B markets. The questionnaire was sent to 340 distributors, and it was returned by 150 respondents. The results showed that 82% of respondents had heard about sales configurators, and 64% had used them. The results also showed that 48% of respondents felt that the use of sales configurators would increase in the future, while only 2% felt they would be used less. The future use of sales configurators was not seen as affecting the level of personal sales. In light of the results, we recommend that B2B companies create marketing strategies that integrate and complement traditional sales processes with digital interactive systems.

Keywords: digitalization, interactive systems, marketing, sales process

Procedia PDF Downloads 119
302 Applying Arima Data Mining Techniques to ERP to Generate Sales Demand Forecasting: A Case Study

Authors: Ghaleb Y. Abbasi, Israa Abu Rumman

Abstract:

This paper modeled sales history archived from 2012 to 2015 bulked in monthly bins for five products for a medical supply company in Jordan. The sales forecasts and extracted consistent patterns in the sales demand history from the Enterprise Resource Planning (ERP) system were used to predict future forecasting and generate sales demand forecasting using time series analysis statistical technique called Auto Regressive Integrated Moving Average (ARIMA). This was used to model and estimate realistic sales demand patterns and predict future forecasting to decide the best models for five products. Analysis revealed that the current replenishment system indicated inventory overstocking.

Keywords: ARIMA models, sales demand forecasting, time series, R code

Procedia PDF Downloads 289
301 Trait of Sales Professionals

Authors: Yuichi Morita, Yoshiteru Nakamori

Abstract:

In car dealer business of Japan, a sale professional is a key factor of company’s success. We hypothesize that, if a corporation knows what is the sales professionals’ trait of its corporation’s business field, it will be easier for a corporation to secure and nurture sales persons effectively. The lean human resources management will ensure business success and good performance of corporations, especially small and medium ones. The goal of the paper is to determine the traits of sales professionals for small-and medium-size car dealers, using chi-square test and the variable rough set model. As a result, the results illustrate that experience of job change, learning ability and product knowledge are important, and an academic background, building a career with internal transfer, experience of the leader and self-development are not important to be a sale professional. Also, we illustrate sales professionals’ traits are persistence, humility, improvisation and passion at business.

Keywords: traits of sales professionals, variable precision rough sets theory, sales professional, sales professionals

Procedia PDF Downloads 290
300 Sales Patterns Clustering Analysis on Seasonal Product Sales Data

Authors: Soojin Kim, Jiwon Yang, Sungzoon Cho

Abstract:

As a seasonal product is only in demand for a short time, inventory management is critical to profits. Both markdowns and stockouts decrease the return on perishable products; therefore, researchers have been interested in the distribution of seasonal products with the aim of maximizing profits. In this study, we propose a data-driven seasonal product sales pattern analysis method for individual retail outlets based on observed sales data clustering; the proposed method helps in determining distribution strategies.

Keywords: clustering, distribution, sales pattern, seasonal product

Procedia PDF Downloads 476
299 Material Saving Strategies, Technologies and Effects on Return on Sales

Authors: Jasna Prester, Najla Podrug, Davor Filipović

Abstract:

Manufacturing companies invest a significant amount of sales into material resources for production. In our sample, 58% of sales is used for manufacturing inputs, while only 24% of sales is used for salaries. This means that if a company is looking to reduce costs, the greater potential is in reduction of material costs than downsizing. This research shows that manufacturing companies in Croatia did realize material savings in last three years. It is also shown by which technologies they achieved materials cost savings. Through literature research, we found research gap as to which technologies reduce material consumption. As methodology of research four regression analyses are used to prove our findings.

Keywords: Croatia, materials savings strategies, technologies, return on sales

Procedia PDF Downloads 182
298 Sales-Based Dynamic Investment and Leverage Decisions: A Longitudinal Study

Authors: Rihab Belguith, Fathi Abid

Abstract:

The paper develops a system-based approach to investigate the dynamic adjustment of debt structure and investment policies of the Dow-Jones index. This approach enables the assessment of relations among sales, debt, and investment opportunities by considering the simultaneous effect of the market environmental change and future growth opportunities. We integrate the firm-specific sales variance to capture the industries' conditions in the model. Empirical results were obtained through a panel data set of firms with different sectors. The analysis support that environmental change does not affect equally the different industry since operating leverage differs among industries and so the sensitivity to sales variance. Including adjusted-specific variance, we find that there is no monotonic relation between leverage, sales, and investment. The firm may choose a low debt level in response to high sales variance but high leverage to attenuate the negative relation between sales variance and the current level of investment. We further find that while the overall effect of debt maturity on leverage is unaffected by the level of growth opportunities, the shorter the maturity of debt is, the smaller the direct effect of sales variance on investment.

Keywords: dynamic panel, investment, leverage decision, sales uncertainty

Procedia PDF Downloads 68
297 Joint Optimal Pricing and Lot-Sizing Decisions for an Advance Sales System under Stochastic Conditions

Authors: Maryam Ghoreishi, Christian Larsen

Abstract:

In this paper, we investigate the effect of stochastic inputs on problem of joint optimal pricing and lot-sizing decisions where the inventory cycle is divided into advance and spot sales periods. During the advance sales period, customer can make reservations while customer with reservations can cancel their order. However, during the spot sales period customers receive the order as soon as the order is placed, but they cannot make any reservation or cancellation during that period. We assume that the inter arrival times during the advance sales and spot sales period are exponentially distributed where the arrival rate is decreasing function of price. Moreover, we assume that the number of cancelled reservations is binomially distributed. In addition, we assume that deterioration process follows an exponential distribution. We investigate two cases. First, we consider two-state case where we find the optimal price during the spot sales period and the optimal price during the advance sales period. Next, we develop a generalized case where we extend two-state case also to allow dynamic prices during the spot sales period. We apply the Markov decision theory in order to find the optimal solutions. In addition, for the generalized case, we apply the policy iteration algorithm in order to find the optimal prices, the optimal lot-size and maximum advance sales amount.

Keywords: inventory control, pricing, Markov decision theory, advance sales system

Procedia PDF Downloads 215
296 Integrating Data Envelopment Analysis and Variance Inflation Factor to Measure the Efficiency of Decision Making Units

Authors: Mostafa Kazemi, Zahra N. Farkhani

Abstract:

This paper proposes an integrated Data Envelopment Analysis (DEA) and Variance Inflation Factor (VIF) model for measuring the technical efficiency of decision making units. The model is validated using a set of 69% sales representatives’ dairy products. The analysis is done in two stages, in the first stage, VIF technique is used to distinguish independent effective factors of resellers, and in the second stage we used DEA for measuring efficiency for both constant and variable return to scales status. Further DEA is used to examine the utilization of environmental factors on efficiency. Results of this paper indicated an average managerial efficiency of 83% in the whole sales representatives’ dairy products. In addition, technical and scale efficiency were counted 96% and 80% respectively. 38% of sales representative have the technical efficiency of 100% and 72% of the sales representative in terms of managerial efficiency are quite efficient.High levels of relative efficiency indicate a good condition for sales representative efficiency.

Keywords: data envelopment analysis (DEA), relative efficiency, sales representatives’ dairy products, variance inflation factor (VIF)

Procedia PDF Downloads 421
295 Estimation of Desktop E-Wastes in Delhi Using Multivariate Flow Analysis

Authors: Sumay Bhojwani, Ashutosh Chandra, Mamita Devaburman, Akriti Bhogal

Abstract:

This article uses the Material flow analysis for estimating e-wastes in the Delhi/NCR region. The Material flow analysis is based on sales data obtained from various sources. Much of the data available for the sales is unreliable because of the existence of a huge informal sector. The informal sector in India accounts for more than 90%. Therefore, the scope of this study is only limited to the formal one. Also, for projection of the sales data till 2030, we have used regression (linear) to avoid complexity. The actual sales in the years following 2015 may vary non-linearly but we have assumed a basic linear relation. The purpose of this study was to know an approximate quantity of desktop e-wastes that we will have by the year 2030 so that we start preparing ourselves for the ineluctable investment in the treatment of these ever-rising e-wastes. The results of this study can be used to install a treatment plant for e-wastes in Delhi.

Keywords: e-wastes, Delhi, desktops, estimation

Procedia PDF Downloads 156
294 Statistic Regression and Open Data Approach for Identifying Economic Indicators That Influence e-Commerce

Authors: Apollinaire Barme, Simon Tamayo, Arthur Gaudron

Abstract:

This paper presents a statistical approach to identify explanatory variables linearly related to e-commerce sales. The proposed methodology allows specifying a regression model in order to quantify the relevance between openly available data (economic and demographic) and national e-commerce sales. The proposed methodology consists in collecting data, preselecting input variables, performing regressions for choosing variables and models, testing and validating. The usefulness of the proposed approach is twofold: on the one hand, it allows identifying the variables that influence e- commerce sales with an accessible approach. And on the other hand, it can be used to model future sales from the input variables. Results show that e-commerce is linearly dependent on 11 economic and demographic indicators.

Keywords: e-commerce, statistical modeling, regression, empirical research

Procedia PDF Downloads 95
293 Role and Impact of Artificial Intelligence in Sales and Distribution Management

Authors: Kiran Nair, Jincy George, Suhaib Anagreh

Abstract:

Artificial intelligence (AI) in a marketing context is a form of a deterministic tool designed to optimize and enhance marketing tasks, research tools, and techniques. It is on the verge of transforming marketing roles and revolutionize the entire industry. This paper aims to explore the current dissemination of the application of artificial intelligence (AI) in the marketing mix, reviewing the scope and application of AI in various aspects of sales and distribution management. The paper also aims at identifying the areas of the strong impact of AI in factors of sales and distribution management such as distribution channel, purchase automation, customer service, merchandising automation, and shopping experiences. This is a qualitative research paper that aims to examine the impact of AI on sales and distribution management of 30 multinational brands in six different industries, namely: airline; automobile; banking and insurance; education; information technology; retail and telecom. Primary data is collected by means of interviews and questionnaires from a sample of 100 marketing managers that have been selected using convenient sampling method. The data is then analyzed using descriptive statistics, correlation analysis and multiple regression analysis. The study reveals that AI applications are extensively used in sales and distribution management, with a strong impact on various factors such as identifying new distribution channels, automation in merchandising, customer service, and purchase automation as well as sales processes. International brands have already integrated AI extensively in their day-to-day operations for better efficiency and improved market share while others are investing heavily in new AI applications for gaining competitive advantage.

Keywords: artificial intelligence, sales and distribution, marketing mix, distribution channel, customer service

Procedia PDF Downloads 24
292 Retail Strategy to Reduce Waste Keeping High Profit Utilizing Taylor's Law in Point-of-Sales Data

Authors: Gen Sakoda, Hideki Takayasu, Misako Takayasu

Abstract:

Waste reduction is a fundamental problem for sustainability. Methods for waste reduction with point-of-sales (POS) data are proposed, utilizing the knowledge of a recent econophysics study on a statistical property of POS data. Concretely, the non-stationary time series analysis method based on the Particle Filter is developed, which considers abnormal fluctuation scaling known as Taylor's law. This method is extended for handling incomplete sales data because of stock-outs by introducing maximum likelihood estimation for censored data. The way for optimal stock determination with pricing the cost of waste reduction is also proposed. This study focuses on the examination of the methods for large sales numbers where Taylor's law is obvious. Numerical analysis using aggregated POS data shows the effectiveness of the methods to reduce food waste maintaining a high profit for large sales numbers. Moreover, the way of pricing the cost of waste reduction reveals that a small profit loss realizes substantial waste reduction, especially in the case that the proportionality constant  of Taylor’s law is small. Specifically, around 1% profit loss realizes half disposal at =0.12, which is the actual  value of processed food items used in this research. The methods provide practical and effective solutions for waste reduction keeping a high profit, especially with large sales numbers.

Keywords: food waste reduction, particle filter, point-of-sales, sustainable development goals, Taylor's law, time series analysis

Procedia PDF Downloads 27
291 Money as Motivation Amongst Industrial Sales People in Nigeria

Authors: Mahmoud Rufai Mahmoud

Abstract:

A look at existing literature on sales force motivation reveals lack of consensus on the role monetary rewards play in motivating salespeople. In view of the apparent contradiction inherent in the literature, it follows perhaps, chat sales managers are faced with the dilemma of what role to assign to monetary incentives in the scheme of motivating salespeople. This study investigated the perception of industrial salespeople on the role of money as a motivator. The result shows that salespeople believe that money is an important motivator whose power of motivation is influenced by a complex function of economic, social and psychological variables. Based on the findings, if is recommended that managers need different types of rewards to achieve a given level of motivation.  

Keywords: motivation, salespeople, money, Nigeria

Procedia PDF Downloads 208
290 Multi-Faceted Growth in Creative Industries

Authors: Sanja Pfeifer, Nataša Šarlija, Marina Jeger, Ana Bilandžić

Abstract:

The purpose of this study is to explore the different facets of growth among micro, small and medium-sized firms in Croatia and to analyze the differences between models designed for all micro, small and medium-sized firms and those in creative industries. Three growth prediction models were designed and tested using the growth of sales, employment and assets of the company as dependent variables. The key drivers of sales growth are: prudent use of cash, industry affiliation and higher share of intangible assets. Growth of assets depends on retained profits, internal and external sources of financing, as well as industry affiliation. Growth in employment is closely related to sources of financing, in particular, debt and it occurs less frequently than growth in sales and assets. The findings confirm the assumption that growth strategies of small and medium-sized enterprises (SMEs) in creative industries have specific differences in comparison to SMEs in general. Interestingly, only 2.2% of growing enterprises achieve growth in employment, assets and sales simultaneously.

Keywords: creative industries, growth prediction model, growth determinants, growth measures

Procedia PDF Downloads 206
289 Forecast of the Small Wind Turbines Sales with Replacement Purchases and with or without Account of Price Changes

Authors: V. Churkin, M. Lopatin

Abstract:

The purpose of the paper is to estimate the US small wind turbines market potential and forecast the small wind turbines sales in the US. The forecasting method is based on the application of the Bass model and the generalized Bass model of innovations diffusion under replacement purchases. In the work an exponential distribution is used for modeling of replacement purchases. Only one parameter of such distribution is determined by average lifetime of small wind turbines. The identification of the model parameters is based on nonlinear regression analysis on the basis of the annual sales statistics which has been published by the American Wind Energy Association (AWEA) since 2001 up to 2012. The estimation of the US average market potential of small wind turbines (for adoption purchases) without account of price changes is 57080 (confidence interval from 49294 to 64866 at P = 0.95) under average lifetime of wind turbines 15 years, and 62402 (confidence interval from 54154 to 70648 at P = 0.95) under average lifetime of wind turbines 20 years. In the first case the explained variance is 90,7%, while in the second - 91,8%. The effect of the wind turbines price changes on their sales was estimated using generalized Bass model. This required a price forecast. To do this, the polynomial regression function, which is based on the Berkeley Lab statistics, was used. The estimation of the US average market potential of small wind turbines (for adoption purchases) in that case is 42542 (confidence interval from 32863 to 52221 at P = 0.95) under average lifetime of wind turbines 15 years, and 47426 (confidence interval from 36092 to 58760 at P = 0.95) under average lifetime of wind turbines 20 years. In the first case the explained variance is 95,3%, while in the second –95,3%.

Keywords: bass model, generalized bass model, replacement purchases, sales forecasting of innovations, statistics of sales of small wind turbines in the United States

Procedia PDF Downloads 255
288 The Profit Trend of Cosmetics Products Using Bootstrap Edgeworth Approximation

Authors: Edlira Donefski, Lorenc Ekonomi, Tina Donefski

Abstract:

Edgeworth approximation is one of the most important statistical methods that has a considered contribution in the reduction of the sum of standard deviation of the independent variables’ coefficients in a Quantile Regression Model. This model estimates the conditional median or other quantiles. In this paper, we have applied approximating statistical methods in an economical problem. We have created and generated a quantile regression model to see how the profit gained is connected with the realized sales of the cosmetic products in a real data, taken from a local business. The Linear Regression of the generated profit and the realized sales was not free of autocorrelation and heteroscedasticity, so this is the reason that we have used this model instead of Linear Regression. Our aim is to analyze in more details the relation between the variables taken into study: the profit and the finalized sales and how to minimize the standard errors of the independent variable involved in this study, the level of realized sales. The statistical methods that we have applied in our work are Edgeworth Approximation for Independent and Identical distributed (IID) cases, Bootstrap version of the Model and the Edgeworth approximation for Bootstrap Quantile Regression Model. The graphics and the results that we have presented here identify the best approximating model of our study.

Keywords: bootstrap, edgeworth approximation, IID, quantile

Procedia PDF Downloads 26
287 Opportunities and Challenges of Omni Channel Retailing in the Emerging Market

Authors: Salma Ahmed, Anil Kumar

Abstract:

This paper develops and estimates a model for understanding the drivers and barriers for Omni-Channel retail. This study serves as one of the first attempt to empirically test the effect of various factors on Omni-channel retail. Omni-channel is relative new and evolving, we hypothesize three drivers: (1) Innovative sales and marketing opportunities, (2) channel migration, (3) Cross channel synergies; and three barriers: (1) Integrated sales and marketing operations, (2) Visibility and synchronization (3) Integration and Technology challenges. The findings from the study strongly support that Omni-channel effects exist between cross channel synergy and channel migration. However, it partially supports innovative sales and marketing operations. We also found the variables which we identified as barriers to Omni-channel retail have a strong impact on Omni-channel retail.

Keywords: retailing, multichannel, Omni-channel, emerging market

Procedia PDF Downloads 378
286 Batman Forever: The Economics of Overlapping Rights

Authors: Franziska Kaiser, Alexander Cuntz

Abstract:

When copyrighted comic characters are also protected under trademark laws, intellectual property (IP) rights can be overlapping. Arguably, registering a trademark can increase transaction costs for cross-media uses of characters, or it can help advertise across multiple sales channels. In an application to book, movie and video game publishing industries, we thus ask how creative reuse is affected in situations of overlapping rights, and whether ‘fuzzy boundaries’ of right frameworks are in fact enhancing or decreasing content sales. We use a major U.S. Supreme Court decision as a quasi-natural experiment to apply an IV estimation in our analysis. We find that overlapping rights frameworks negatively affect creative reuses. At large, when copyright-protected comic characters are additionally registered as U.S. trademarks, they are less often reprinted and enter fewer video game productions, while generating less revenue from game sales.

Keywords: copyright, fictional characters, trademark, reuse

Procedia PDF Downloads 29
285 Improving Sales through Inventory Reduction: A Retail Chain Case Study

Authors: M. G. Mattos, J. E. Pécora Jr, T. A. Briso

Abstract:

Today's challenging business environment, with unpredictable demand and volatility, requires a supply chain strategy that handles uncertainty and risks in the right way. Even though inventory models have been previously explored, this paper seeks to apply these concepts on a practical situation. This study involves the inventory replenishment problem, applying techniques that are mainly based on mathematical assumptions and modeling. The primary goal is to improve the retailer’s supply chain processes taking store differences when setting the various target stock levels. Through inventory review policy, picking piece implementation and minimum exposure definition, we were able not only to promote the inventory reduction as well as improve sales results. The inventory management theory from literature review was then tested on a single case study regarding a particular department in one of the largest Latam retail chains.

Keywords: inventory, distribution, retail, risk, safety stock, sales, uncertainty

Procedia PDF Downloads 166
284 Promotional Mix as a Determinant of Consumer Buying Decision in the Food and Beverages Industry: A Case Study of Nigeria Bottling Company Plc., Asejire Ibadan

Authors: Adedeji S. Adegoke, Olakunle N. Popoola

Abstract:

Promotion is indispensible and inestimable property of marketing through which different organizations persuade their prospective customers. The idea of passing information about a product to the consumer at outside the world is known as promotional activities. A study was determined whether there was relationship between promotional mix and consumer buying decision, that is may be customers were influenced by promotion. It was investigated to determine whether promotion can be used to influence competitors’ activities in the market and also research was conducted to determine if there was any problem encountered by Nigeria bottling company plc, in promoting its beverages products. The various forms of promotional mix available for an organization were examined and recommended the appropriate promotional mix that company can adopt to boost the company sales. The research design was depended on the primary and secondary data. The primary data were information collected from the subjects using methods of data collection, that is through the use of questionnaire, interview, direct observation, etc. The secondary data consist of information that already exists having been collected for another purpose by some researchers. These include internal and external sources. The questionnaire was designed and administered to the staff of production and marketing department of Nigeria bottling company plc., which served as the population of this study, out of which sample was drawn randomly from the population, using sample random technique. It was deduced that 90% of the respondents opined that advertising influenced competition in the market and that there was a good sale after they started advert while 10% of them were not sure. At advertising level, 85% of the respondents chose 81-100% as the increase in the percentage recorded in their sales level, while 10% of them agreed that increase in the percentage recorded in their sales was within 61-80% and 5% of them chose 45-60% as the percentage increase in their sales record. Due to unstable economic condition of the Nigeria, many business organizations adopted the promotional strategies. Apart from advertising, it was discovered through research that sales promotion served as an incentive to consumers of Nigeria bottling company plc at a time offer gifts and prizes to consumers which drastically increased their level of sales. Since advertising and sales promotion increased the level of sales, more money should be allocated for this purpose to maintain market share and thereby increase profit.

Keywords: consumer, marketing, organization, promotional mix

Procedia PDF Downloads 66
283 Mediating Role of Experiential Value Added by the Sales Force

Authors: Said Echchakoui

Abstract:

This paper aims to investigate how experiential value added by the salesperson mediates the relationship between perceived salesperson source characteristics and his performance. Structural equation modelling was employed to assess the proposed research model empirically. The empirical results revealed that the three dimensions of experiential value economic benefit, service productivity and enjoyable interaction, mediated the relationship between perceived salesperson source characteristics and his performance. Managerial implications are addressed.

Keywords: sales force, experiential added value, customer perceived value, performance

Procedia PDF Downloads 309
282 Selling Electric Vehicles: Experiences from Car Salesmen in Sweden

Authors: Jens Hagman, Jenny Janhager Stier, Ellen Olausson, Anne Y. Faxer, Ana Magazinius

Abstract:

Sweden has the second highest electric vehicle (plug-in hybrid and battery electric vehicle) sales per capita in Europe but in relation to sales of internal combustion engine electric vehicles sales are still minuscular (< 4%). Much research effort has been placed on various technical and user focused barriers and enablers for adoption of electric vehicles. Less effort has been placed on investigating the retail (dealership-customer) sales process of vehicles in general and electric vehicles in particular. Arguably, no one ought to be better informed about needs and desires of potential electric vehicle buyers than car salesmen, originating from their daily encounters with customers at the dealership. The aim of this paper is to explore the conditions of selling electric vehicle from a car salesmen’s perspective. This includes identifying barriers and enablers for electric vehicle sales originating from internal (dealership and brand) and external (customer, government) sources. In this interview study five car brands (manufacturers) that sell both electric and internal combustion engine vehicles have been investigated. A total of 15 semi-structured interviews have been conducted (three per brand, in rural and urban settings and at different dealerships). Initial analysis reveals several barriers and enablers, experienced by car salesmen, which influence electric vehicle sales. Examples of as reported by car salesmen identified barriers are: -Electric vehicles earn car salesmen less commission on average compared to internal combustion engine vehicles. -It takes more time to sell and deliver an electric vehicle than an internal combustion engine vehicle. -Current leasing contracts entails relatively low second-hand value estimations for electric vehicles and thus a high leasing fee, which negatively affects the attractiveness of electric vehicles for private consumers in particular. -High purchasing price discourages many consumers from considering electric vehicles. -The education and knowledge level of electric vehicles differs between car salesmen, which could affect their self-confidence in meeting well prepared and question prone electric vehicle buyers. Examples of identified enablers are: -Company car tax regulation promotes sales of electric vehicles; in particular, plug-in hybrid electric vehicles are sold extensively to companies (up to 95 % of sales). -Low operating cost of electric vehicles such as fuel and service is an advantage when understood by consumers. -The drive performance of electric vehicles (quick, silent and fun to drive) is attractive to consumers. -Environmental aspects are considered important for certain consumer groups. -Fast technological improvements, such as increased range are opening up a wider market for electric vehicles. -For one of the brands; attractive private lease campaigns have proved effective to promote sales. This paper gives insights of an important but often overlooked aspect for the diffusion of electric vehicles (and durable products in general); the interaction between car salesmen and customers at the critical acquiring moment. Extracted through interviews with multiple car salesmen. The results illuminate untapped potential for sellers (salesmen, dealerships and brands) to mitigating sales barriers and strengthening sales enablers and thus becoming a more important actor in the electric vehicle diffusion process.

Keywords: customer barriers, electric vehicle promotion, sales of electric vehicles, interviews with car salesmen

Procedia PDF Downloads 104
281 Estimation of Service Quality and Its Impact on Market Share Using Business Analytics

Authors: Haritha Saranga

Abstract:

Service quality has become an important driver of competition in manufacturing industries of late, as many products are being sold in conjunction with service offerings. With increase in computational power and data capture capabilities, it has become possible to analyze and estimate various aspects of service quality at the granular level and determine their impact on business performance. In the current study context, dealer level, model-wise warranty data from one of the top two-wheeler manufacturers in India is used to estimate service quality of individual dealers and its impact on warranty related costs and sales performance. We collected primary data on warranty costs, number of complaints, monthly sales, type of quality upgrades, etc. from the two-wheeler automaker. In addition, we gathered secondary data on various regions in India, such as petrol and diesel prices, geographic and climatic conditions of various regions where the dealers are located, to control for customer usage patterns. We analyze this primary and secondary data with the help of a variety of analytics tools such as Auto-Regressive Integrated Moving Average (ARIMA), Seasonal ARIMA and ARIMAX. Study results, after controlling for a variety of factors, such as size, age, region of the dealership, and customer usage pattern, show that service quality does influence sales of the products in a significant manner. A more nuanced analysis reveals the dynamics between product quality and service quality, and how their interaction affects sales performance in the Indian two-wheeler industry context. We also provide various managerial insights using descriptive analytics and build a model that can provide sales projections using a variety of forecasting techniques.

Keywords: service quality, product quality, automobile industry, business analytics, auto-regressive integrated moving average

Procedia PDF Downloads 39
280 Pakistan’s Taxation System: A Critical Appraisal

Authors: Khalid Javed, Rashid Mahmood

Abstract:

The constitution empowers the Federal Government to collect taxes on income other than agricultural income, taxes on capital value, customs, excise duties and sales taxes. The Central Board of Revenue (CBR) and its subordinate departments administer the tax system. Each of the three principal taxes has a different history and different set of issues. For a large number of income tax payers the core of the business process is pre-audit and assessment by a tax official. This process gives considerable discretion to tax officials, with potential for abuse. Moreover, this process is also not tenable as the number of taxpayers increase. The report is focused on a total overhaul of the process and organization of income tax. Sales tax is recent and its process and organization is adjusted to the needs of an expanding tax base. These are based on self-assessment and selective audit. Similarly, in customs the accent is on accelerating and broadening the changes begun in recent years. Before long, central excise will be subsumed in sales tax. During the nineties, despite many changes in the tax regime and introduction of withholding and presumptive taxes, Federal Government tax to GDP ratio has varied narrowly around eleven percent. The tax base has grown but still remains narrow and skewed. The number of income tax filers is around one million.

Keywords: central board of revenue, GDP, sale tax, income tax

Procedia PDF Downloads 213
279 Composite Forecasts Accuracy for Automobile Sales in Thailand

Authors: Watchareeporn Chaimongkol

Abstract:

In this paper, we compare the statistical measures accuracy of composite forecasting model to estimate automobile customer demand in Thailand. A modified simple exponential smoothing and autoregressive integrate moving average (ARIMA) forecasting model is built to estimate customer demand of passenger cars, instead of using information of historical sales data. Our model takes into account special characteristic of the Thai automobile market such as sales promotion, advertising and publicity, petrol price, and interest rate for loan. We evaluate our forecasting model by comparing forecasts with actual data using six accuracy measurements, mean absolute percentage error (MAPE), geometric mean absolute error (GMAE), symmetric mean absolute percentage error (sMAPE), mean absolute scaled error (MASE), median relative absolute error (MdRAE), and geometric mean relative absolute error (GMRAE).

Keywords: composite forecasting, simple exponential smoothing model, autoregressive integrate moving average model selection, accuracy measurements

Procedia PDF Downloads 252
278 Discovering Event Outliers for Drug as Commercial Products

Authors: Arunas Burinskas, Aurelija Burinskiene

Abstract:

On average, ten percent of drugs - commercial products are not available in pharmacies due to shortage. The shortage event disbalance sales and requires a recovery period, which is too long. Therefore, one of the critical issues that pharmacies do not record potential sales transactions during shortage and recovery periods. The authors suggest estimating outliers during shortage and recovery periods. To shorten the recovery period, the authors suggest using average sales per sales day prediction, which helps to protect the data from being downwards or upwards. Authors use the outlier’s visualization method across different drugs and apply the Grubbs test for significance evaluation. The researched sample is 100 drugs in a one-month time frame. The authors detected that high demand variability products had outliers. Among analyzed drugs, which are commercial products i) High demand variability drugs have a one-week shortage period, and the probability of facing a shortage is equal to 69.23%. ii) Mid demand variability drugs have three days shortage period, and the likelihood to fall into deficit is equal to 34.62%. To avoid shortage events and minimize the recovery period, real data must be set up. Even though there are some outlier detection methods for drug data cleaning, they have not been used for the minimization of recovery period once a shortage has occurred. The authors use Grubbs’ test real-life data cleaning method for outliers’ adjustment. In the paper, the outliers’ adjustment method is applied with a confidence level of 99%. In practice, the Grubbs’ test was used to detect outliers for cancer drugs and reported positive results. The application of the Grubbs’ test is used to detect outliers which exceed boundaries of normal distribution. The result is a probability that indicates the core data of actual sales. The application of the outliers’ test method helps to represent the difference of the mean of the sample and the most extreme data considering the standard deviation. The test detects one outlier at a time with different probabilities from a data set with an assumed normal distribution. Based on approximation data, the authors constructed a framework for scaling potential sales and estimating outliers with Grubbs’ test method. The suggested framework is applicable during the shortage event and recovery periods. The proposed framework has practical value and could be used for the minimization of the recovery period required after the shortage of event occurrence.

Keywords: drugs, Grubbs' test, outlier, shortage event

Procedia PDF Downloads 29
277 A Corporate Social Responsibility View on Bribery Control in Business Relationships

Authors: Irfan Ameer

Abstract:

Bribery control in developing countries is the biggest challenge for multinational enterprises (MNEs). Bribery practices are socially embedded and institutionalized, and therefore may achieve collective legitimacy in the society. MNEs often have better and strict norms, codes and standards about such corrupt practices. Bribery in B2B sales relationships has been researched but studies focusing on the role of firm in controlling bribery are scarce. The main objective of this paper is to explore MNEs strategies to control bribery in an environment where bribery is institutionalized. This qualitative study uses narrative approach and focuses on key events, actors and their role in controlling bribery in B2B sales relationships. The context of this study is pharmaceutical industry of Pakistan and data is collected through 23 episodic interviews supported by secondary data. The Corporate social responsibility (CSR) literature e.g. CSR three domain model and CSR pyramid is used to make sense of MNEs strategies to control bribery in developing countries. Results show that MNEs’ bribery control strategies are rather emerging based on the role of some key stakeholders and events which shape bribery strategies. Five key bribery control strategies were found through which MNEs can control both demand and supply side of bribery: bribery related codes development; bribery related codes implementation; focusing on competitive advantage; find mutually beneficial ethical solution; and collaboration with ethical stakeholders. The results also highlight the problems associated with each strategy. Study is unique in a sense that it focuses on stakeholders having unethical interests and provides guidelines to MNEs in controlling bribery practices in B2B sales relationships.

Keywords: bribery, developing countries, CSR, narrative research, B2B sales, MNEs

Procedia PDF Downloads 286
276 Economics Analysis of Chinese Social Media Platform Sina Weibo and E-Commerce Platform Taobao

Authors: Xingyue Yang

Abstract:

This study focused on Chinese social media stars and the relationship between their level of fame on the social media platform Sina Weibo and their sales revenue on the E-commerce platform Taobao/Tmall.com. This was viewed from the perspective of Adler’s superstardom theory and Rosen and MacDonald’s theories examining the economics of celebrities who build their audience using digital, rather than traditional platforms. Theory and empirical research support the assertion that stars of traditional media achieve popular success due to a combination of talent and market concentration, as well as a range of other factors. These factors are also generally considered relevant to the popularisation of social media stars. However, success across digital media platforms also involves other variables - for example, upload strategies, cross-platform promotions, which often have no direct corollary in traditional media. These factors were the focus of our study, which investigated the relationship between popularity, promotional strategy and sales revenue for 15 social media stars who specialised in culinary topics on the Chinese social media platform Sina Weibo. In 2019, these food bloggers made a total of 2076 Sina Weibo posts, and these were compiled alongside calculations made to determine each food blogger’s sales revenue on the eCommerce platforms Taobao/Tmall. Quantitative analysis was then performed on this data, which determined that certain upload strategies on Weibo - such as upload time, posting format and length of video - have an important impact on the success of sales revenue on Taobao/Tmall.com.

Keywords: attention economics, digital media, network effect, social media stars

Procedia PDF Downloads 47
275 Did Nature of Job Matters - Impact of Perceived Job Autonomy on Turnover Intention in Sales and Marketing Managers: Moderating Effect of Procedural and Distributive Justice

Authors: Muhammad Babar Shahzad

Abstract:

The purpose of our study is to investigate the relationship between perceived job autonomy and turnover intention in sales & marketing staff. Perceived job autonomy is considered one of most studied dimension of Job Characteristic Model. But still there is a confusion in scholars about predictive role of perceived job autonomy in turnover intention. In line of more complex research on this relation, we investigated the relationship between perceived job autonomy and turnover intention. Did nature of job have any impact on this relationship. On the call of different authors we take interactive effect of perceived job autonomy and procedural justice on turnover intention. Predictive role of distributive justice to employee outcomes is not deniable. But predictive role of distributive justice will be prone in different contextual influences. Interactive role of distributive justice and perceived job autonomy is also not tested before. We collected date from 279 marketing and sales managers working in financial institution, FMCG industries, Pharamesutical Industry & Bank. Strong and direct negative relation was found in perceived job autonomy, distributive justice & procedural justice on turnover intention. Distributive and procedural justice is also amplifying the negative relationship of perceived job autonomy and turnover intention. Limitation and future direction for research is also discussed.

Keywords: perceived job autonomy, turnover intention, procedural justice, distributive job

Procedia PDF Downloads 400