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Maritz Automotive

By: Ashley V. Whillans and Lamar Pierce
  • Format:Print
  • | Language:English
  • | Pages:30
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Abstract

This case focuses on Charlotte Blank, the Chief Behavioral Officer at Maritz, as she tries to assist a major automotive manufacturer (CarCo) with increasing their sales by prepaying monthly bonuses to independently franchised car dealers and clawing them back if the sales targets are not reached. This pre-payment structure is what behavioral economists call “loss-framing.” Broadly, this prepayment structure is an attempt to increase sales effort by harnessing people’s desire to defend their earnings, endowments, and possessions. The case is based on a National Bureau of Economic Research (NBER) working paper that can be read for additional detail on the underlying theory or empirics.

Keywords

Loss-framing; Sales; Performance Improvement; Compensation and Benefits; Motivation and Incentives; Behavior; Theory; Auto Industry

Citation

Whillans, Ashley V., and Lamar Pierce. "Maritz Automotive." Harvard Business School Teaching Note 921-044, January 2021.

About The Author

Ashley V. Whillans

Negotiation, Organizations & Markets
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