Abstract
Compensation practices play a role in the perpetuation of the much reviled “used-car salesman” stereotype. This article explores the occupation that everybody loves to hate. In particular, it investigates the relationship between the design of automotive sales compensation and the types of personalities and behaviors that commonly characterize salespeople in the auto industry. The article concludes that auto sales compensation programs play a significant role in creating an environment of high competition within dealerships, a climate of aggressiveness and frequent use of high-pressure sales techniques. The article also describes examples of steps taken by some dealerships to change this environment and trends within the industry that may significantly change the auto sales and sales compensation structures of the future.
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