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To play devil's advocate here, smaller shops tend to not have as many customers so they can lose a few cents on every transaction. If every Starbucks or big nam
by dangoldin 18y ago
To play devil's advocate here, smaller shops tend to not have as many customers so they can lose a few cents on every transaction. If every Starbucks or big name hotel started giving these freebies, it would go into the big bucks. I guess one can blame shareholders for that.
- noonespecial 18y agoThis implies that its a zero sum situation. The goodwill generated might actually (probably) lead to an increase in sales overall despite the small discounts per sale. Big business seems positively blinded to this potential emergent behavior. Sometimes I find it extremely comical how giant companies with the resources to hire a legion of economists will defy common sense in pursuit of a nickel at the cost of a dollar, all the while dragging their reputation through the mud.
- froo 18y agoI think its a result of the difficulties in quantifying customer satisfaction as opposed to simply trying to screw everyone with additional costs. I think the economists views are that its all about ensuring that you meet or exceed shareholder expectations, so they will take the approach of "its better having a bird in the hand than 2 in the bush" when it comes to these matters. Besides - when it comes to things like these, I think there is the vocal minority that complains and says that they will never use that company again (the majority of people do use them again anyway) and the majority of people are simply complacent and accept it.