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Figure Figure 2 Growth that compounds

One severance, two directions

Revenue change in the year after a salesperson change at one logistics firm: repeat business fell, first-time business rose, and the average total was still negative.

A bar chart of revenue change one year after a salesperson change at one European logistics firm. Resale revenue, the repurchasing of products already bought: minus 28.8 percent. Total revenue on average: minus 6.8 percent. New-sale revenue, products bought for the first time: plus 52.2 percent. The two marked bars show one severance moving repeat and first-time business in opposite directions.-40-200204060-28.8Resale revenue-6.8Total revenue (average)52.2New-sale revenueChange one year after a salesperson change (%)
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Reference & Evidence

Source: Schmitz, Friess, Alavi & Habel (2020), Table 5: difference-in-differences, e^b−1; 2,040 B2B customers of one European logistics company. Average effects: the total turned positive only in measured favorable combinations (their Table 7). One firm; directions, not portable rates.

Each line is a claim from the register this journal publishes against, resolved from the register at build time.

  • A The two opposing paths, verbatim: "Data pertaining to 2,040 B2B customers of a leading European logistics company over a four-year period, implemented in a series of difference-in-differences models, reveal that relationship disruptions can decrease resale reve""nue by 28.8% but can also increase new sale revenues by 52.2%" Schmitz, Friess, Alavi & Habel (2020), Table 5 · SFAH20-C1
  • A The total effect is the smaller of the three: "we find that customers who experience a relationship disrup""tion generate 6.8% less total revenue on average" Schmitz, Friess, Alavi & Habel (2020), Table 5 · SFAH20-C2
  • A The positive totals are conditional, and the design is one firm: "Data pertaining to 2,040 B2B customers of a leading European logistics company over a four-year period, implemented in a series of difference-in-differences models" Schmitz, Friess, Alavi & Habel (2020), implications and Table 7 · SFAH20-C3

Grades: A, verified against the printed page of the primary source · B, primary source, text layer only · C, authoritative secondary · D, reported.

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