3 ms·
It comes down to incentives. If you're the owner of a small business that relies on a good reputation and repeat customers, you're going to care about quality o
by photochemsyn 3y ago
It comes down to incentives. If you're the owner of a small business that relies on a good reputation and repeat customers, you're going to care about quality of service because it directly impacts your bottom line.
As companies grow, they might choose to hire employees and managers who are paid flat wages regardless of whether the company does a lot of business or a little. If the employees work hard and the business flourishes, but they see no reward of any kind, this fosters resentment and they stop caring about quality of service.
Intelligent business owners recognize this reality and offer incentives that reward employees if business is good - e.g. commissions on sales in the retail world, stock options in the startup world, wage increases in the manufacturing sector, etc. Greedy shortsighted owners ignore this dynamic, so their employees are incentivized to do the least amount of work possible, just enough to avoid being fired.
Where things get really bad is when monopolization grows and markets end up controlled by very few players, so customers have nowhere else to turn to (Comcast etc.).