Downstream channel allowances involve the practice of selling firms making payments to customers in exchange for distribution of a product. Such transactions occur most frequently in a business-to-business exchange. Although various forms of channel allowances have been investigated over the past three decades, the literature is lacking in guidance regarding whether or not, and to what extent, the salesperson should control these payments. Relying on the theoretical underpinnings of cognitive evaluation theory, this dissertation takes the initial step in understanding the effects of customer perceptions of salesperson control over allowances, with special attention to the impact on the customer-salesperson relationship. A key finding of this study is that high perceived salesperson control (from the customer‘s perspective) has moderation effects in relation to customer loyalty and salesperson performance. An explanation is offered for the unexpected findings followed by a discussion of the implications for theory, managers, and future research in the area of channel allowances.