User Account

All Pages

Discount on products they buy at kaufmann

Assignment Help Business Management
Reference no: EM131531778

Parkleigh Pharmacy is a small department store in Rochester, NY, specializing in upscale, expensive personal accessories (e.g., sunglasses, beauty aids, leather goods) and home decorations (e.g., crystal, china, table lamps). Kaufmann's is a large department store chain, based in Pennsylvania, with several stores in the Rochester area. Kaufmann's car- ries a broader range of products and caters more to middle-income consumers. Salespeople at Parkleigh are paid a straight hourly wage (i.e., no sales commissions). In addition, they are entitled to a 30 percent discount on anything they buy at the store. By contrast, salespeople at Kaufmann's are paid an hourly wage (lower than the hourly wage paid at Parkleigh) plus a commission of 5 percent on sales they make. They receive no discount on products they buy at Kaufmann's.

1. Why do you think the compensation plans differ at the two firms? In particular, why do you think Kaufmann's pays commissions to salespeople, while Parkleigh does not? Why does Parkleigh offer employees discounts on purchases, while Kaufmann's does not?

2. Assume, for the moment, that neither store pays sales commissions. Parkleigh offers an hourly wage plus the employee discount. Kaufmann's offers only an hourly wage. Do you expect Kaufmann's hourly wage to be higher or lower than Parkleigh's? Why?

Reference no: EM131531778

Questions Cloud

Paper on use of the spearman rank correlation coefficient : Write a paper regarding the use of the Spearman rank correlation coefficient by Messina et al - Comment on what variables were used
Financial statement analysis and financial ratio analysis : Financial Statement Analysis/Financial Ratio Analysis
Does this apply to facts about ethical behaviour : What are ‘objective facts'? Do the personal values of individuals colour the language in which facts are expressed? If we have power, do we inevitably use it.
How organizational cultures have an impact on performance : Explain how organizational cultures have an impact on performance and satisfaction. Discuss group behaviour in terms of the following context.
Discount on products they buy at kaufmann : They receive no discount on products they buy at Kaufmann's.
Compare non-systematic risk from four-factor model and CAPM : Compare the non-systematic risk from the four-factor model and the CAPM. Are they different? What do the differences suggest?
How would these solutions influence public health overall : What is their health like currently? What do we already know about the population you have identified
Responsible for the discriminatory acts : The issue is whether the franchiser or the franchisee is ultimately responsible for the discriminatory acts. What result?
Define the coping strategy : The Ancient Greek philosopher Socrates was a ‘gadfly', executed for corrupting the youth of Athens with his dangerous ideas.

Reviews

Write a Review

Business Management Questions & Answers

  Explain why is extensive research necessary for an accurate

Explain how necessary is it to fine-tune your Marketing Plan so that your target market is clearly defined and measurable? Explain why is extensive research necessary for an accurate definition of a target market?

  Important positions in most foreign subsidiaries

In the Dutch firm Philips, all important positions in most foreign subsidiaries were at one time held by Dutch nationals who were referred to by their non-Dutch colleagues as the Dutch Mafia. This example illustrates a(n):

  Process for establishing crew resource management

Explain the process for establishing crew resource management (CRM). With references

  Expanding team self-awareness

Thinking more about those "Expanding Team Self-Awareness", share an example when you may have seen one of those  definitely NOT being followed.  What was the result?

  What are the two rationales for the crime of attempt

What are the two rationales for the crime of attempt? Discuss broken windows theory and provide examples. What has research shown about the validity of theory?

  Suggestions to avoid forecasting errors

Suggestions to Avoid Forecasting Errors - How should I proceed to write this memo and what should be emphasized?

  What request if ramona plans to stay in the hr field

Her supervisor was impressed with Ramona's knowledge of current laws with respect to hiring practices, but asked her to quickly get up to speed on compensation also training laws. This is a reasonable request if Ramona plans to stay in the HR fiel..

  Approaches to entrepreneurship

The approaches to entrepreneurship were examined from two different perspectives. Please elaborate. on first the Integrative approach, & then dynamic states approach.

  Average level of prices of goods and services rises

Consider the following statement: 'When the average level of prices of goods and services rises, the inflation rate rises'? Do you agree or disagree? Explain.

  Economic indicators that would affect

What are some economic indicators that would affect how Under Armour performs?

  Managerial accounting for organizational performance

Evaluate the long-term growth and performance of the company based on the balanced scorecard.

  Managerial economics and organizational architecture

Important information about Managerial Economics and Organizational Architecture - What do you think will happen to the price and quantity

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd