Solutions in Practice

3 important questions on Solutions in Practice

What are the 4 strategic responses discussed?

  1. Classic accommodation
  2. Classic reduction
  3. Low-cost accommodation
  4. Uncompromised reduction

Why would one customer necessarily care about the inconvenience suffered by another?

To use normative controls effectively, companies need to create an environment in which customers care about the impact of their behavior on others.

When can normative controls be particularly important?

When instrumental incentives have failed.

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