You are working at a marketing firm in ad sales. Your manager announces that the company is
Question:
You are working at a marketing firm in ad sales. Your manager announces that the company is starting a new incentive program to increase the number of potential customers, or leads, for salespeople to contact. For every lead submitted by an employee, the employee will receive $10 in their next paycheck. After a week, the sales manager realizes that her staff is simply submitting lists of names of everyone they know for $10 a name, resulting in a net loss to the company because the vast majority of the leads are useless. For each of the following changes, explain to your manager whether or not it will fix the problem.
a. Instead of offering $10 for each lead, offer $25 instead.
b. Instead of offering $10 for each lead, offer $5 instead.
c. Instead of paying $10 for each lead, offer to pay employees a percentage of revenue actually earned from a lead they submit.
d. Hire a consultant to sift through the leads and pass along only useful leads to the sales team.
Step by Step Answer:
Principles Of Economics
ISBN: 9781319330156,9781319419769
2nd Edition
Authors: Betsey Stevenson, Justin Wolfers