Doug J. Chung
Assistant Professor of Business Administration
Doug J. Chung is an assistant professor of business administration in the Marketing Unit and teaches the Marketing course in the MBA required curriculum and Business Marketing in Executive Education. Professor Chung focuses his research primarily on sales force management and incentive compensation. His current work examines how different components of an incentive compensation plan affect the performance of varying types of sales agents. Professor Chung earned his Ph.D. in management at Yale University, where he also earned an MA and M. Phil in management. He is the recipient of the ISMS Doctoral Dissertation Award, ISBM Doctoral Support Award, and the Mary Kay Doctoral Dissertation Award. He is also a member of the Edward A. Bouchet Graduate Honor Society. He completed his undergraduate studies at Korea University. Prior to pursuing a career in academics, Professor Chung served as an officer and platoon commander in the South Korean Special Forces. He also held a variety of industry positions with several multinational companies.
Professor Chung models the effect of incentive compensation to study its impact on the sales force. Using data from a Fortune 500 company, he has developed a dynamic structural model of sales force response to a bonus-based compensation plan and examined how various components of the plan affect the performance of sales agents. While bonuses enhance productivity across all segments, strong and weak performers exhibit differences. The best sales people can sustain their high levels of productivity even after attaining their quotas with the incentive of overachievement commissions, and weaker performers can be kept on track toward annual quotas with the incentive of quarterly bonuses.
Professor Chung also studies the impact of unconditional incentives such as recognition and awards. Further, he is examining how framing a compensation plan can have different outcomes in sales force performance. He finds, in the short run, that the more vicious the incentive plan is, the more immediate the impact on performance. However, there are more negative effects in performance in the long-run. Recognition and rewards, on the other hand, have limited impact in the short-run but produce significant improvement in performance in the long-run.
Professor Chung is expanding his research to include cultural factors by investigating the effect of local and global incentives in businesses in Asia and Latin America.