The Nonlinear Effect of Incentives in Distribution Channels

Flora Gu, Danny T Wang

Research output: Contribution to conferenceConference abstractpeer-review


Using incentive premiums to stimulate channel members is one of the principal strategies of marketing channel governance. However, conflicting evidence exists regarding their role and effectiveness in motivating channel members' cooperation. Drawing on the motivation crowding theory and integrating it with the channel governance literature, the study proposes that incentive premium has a nonlinear effect on channel members' cooperative performance. Using an experiment and a field study, the authors find strong empirical support for the inverted U-shaped effect. These findings highlight the performance trade-offs associated with incentive premiums and have important implications in managing marketing channels.
Original languageEnglish
Publication statusPublished - 14 Jul 2023
Event24th Academy of Marketing Science World Marketing Congress: Bringing the Soul Back to Marketing - Kent Business School, University of Kent, Canterbury, United Kingdom
Duration: 11 Jul 202314 Jul 2023


Conference24th Academy of Marketing Science World Marketing Congress
Abbreviated titleAMSWMC
Country/TerritoryUnited Kingdom
Internet address

Scopus Subject Areas

  • Business, Management and Accounting(all)


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