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Consider the following firms and the salesperson incentive structure: a firm selling knives door to door at a set customer price; a firm selling jet
Consider the following firms and the salesperson incentive structure: a firm selling knives door to door at a set customer price; a firm selling jet engines to airlines at a negotiated price that is reviewed by many executives; and a firm selling cake mix to bakers and grocers where deals are made by individual salespeople. Which firm might find volume-based incentives most appropriate? Which firm might find revenue-based incentives most appropriate? Which firm might find profit-based incentives most appropriate? Are profit-based incentives always the most efficient? Why might a firm choose not to use them? Choose a submission type
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