Question

Maya runs a store selling pizza. To increase demand for her pizzas she employs Bob to deliver discount coupons in the local neighbourhood. Bob is given 200 coupons to deliver each day. At the end of each day Bob returns to the store to collect another 200 coupons for the next day. After 3 weeks of coupons, Maya has still not seen an increase in her pizza demand.

a) Advise Maya as to why her strategy is not working.

b) How could Maya improve her strategy?

Answer 1

a)The strategy is not working since there exists non accountablity for Bob in terms of his wage structure with a flat pay.Bob gets paid the same amount of money regardless of the bump in sales which means he is not motivated to either deliver them all or sell people on the store. Maya's focus on the local neigbourhood could also be hurting her as the market might be saturated and she should consider employing someone to deliver in order to increase the number of potential consumers.

b)Maya could offer Bob an incentive based wage structure which means that he gets paid based on the number of coupons cashed in rather than the number of coupons delivered which creates an accountablity based model hence preventing Bob from slacking.Maya could also expand the potential consumer base by offering higher discount based coupons to consumers living beyond the local neighbourhood to attract them.