Publications
Publications
- January 2021 (Revised March 2022)
- HBS Case Collection
Maritz Automotive
By: Ashley V. Whillans and Lamar Pierce
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. (Revised March 2022.)