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BUMGT1501 Management Principles

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If we change this program. if we keep straight commission (or some and return to  hourly pay for others how does that fit with our new  imager Lauren said to Jack.

How does it deal with the difference in pay scale? How does it assure us that the attitudes of our sales team and the culture of this store will not [et= to what we were before - just another store?

1 What do you sec as the advantages and disadvantages of the incentive system that DeMarco's is using for sales associates?

What impact do you think it is having on the DeMarepOs culture? Explain.

2 you think the complaints of lower-paid sales associates are SL legitimate? Why? How do you suggest Lauren respond to these complaints.  such as theogripe ttte system offers few opportunities for large commissions in some

3 Have the successes of sales associates such as Katherine or Damien created a situation in which loyalty to customers is stronger than loyalty to the store? For example. if a successful associate leaves DeMarco's. might the customer leave also?

De Marco's, hIcekther raInTriartment stores. suffered the Auble whammy of a slitliag .omy and Increased competition from c41 discount retailers and 0 ne shopping.

How could the store, the 'box', compete, retain its old customers and build a strong future customer base?

'We've always known that it all about customer service,' Lauren said 'But what's so great about grabbing a giant plastic shopping cart and slogging through some giant warehouse in your shorts and flip-flops. and then yarning the herd at the checkout?

That is not a shopping experience: wc•r` "di 'And what isn't great about being treated hkeargifrom the moment you hit the door until the sales associate swipes your card and hands over something lovely that you just purchased?' Jack asked. Lauren's idea was that store customers receive that personal.  

Upscale. 'you're somebody special here' treatment at DeMarco's. Sales associates would raise their own professional level, regard customers as worthy_olgessonalleed service and build their own clientele. As added incentive. the entire DeMarco's sales team was calmed over from hourly pay to straight commission. Your pay is built through your own initiative and individualised service that makes customers return to you again NV, again.'

The idea intrialb Corporate. which approved a two-yearci experiment. As expected. the new plan created a minousgslusa5mOlig those who wentm a Ctill An IV of a egular pay cheque.

But as the program moved through Its first year, both store and corporate management was pleasede overall tesullt. Marketing pushed the new image of Cittpersonalised customer service,  and phrases such as 'Katherine at DeMarco's helped me select this out fit or 'Damien always lets me know when something new arrives at DeMarco's that he thinks is perfect for me' became the typical boast of savvy shoppers.

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