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Incentives

MM074y ago
A book line said that; "Incentives may be potential conflict when contrasting long and short term objectives. (e.g. sales staff offering discounts to customers to win extra orders this year to get a bonus, at the expense of next year’s sales)." Professor, how can giving discount today be expense for next year's sales? It should increase sales.
gromitgromitTutor4y ago#1
If giving discounts causes buyers to accelerate their purchases from next year to this year then next year's sales will potentially suffer.
MM074y ago#2
Thank you professor.
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