Sales Incentives and Customer Trust
A short auto dealership decision problem. Use the supplied facts, commit to one action, then check your reasoning. Fictional practice; no leaderboard score is recorded.
Auto dealership · incentive design
You paid service advisors a commission on parts and labor revenue. Revenue per repair order rose 22%. Repeat service visits fell 15%, the online rating dropped from 4.5 to 3.8, and warranty complaints about unnecessary work doubled.
| Given fact | Scenario data |
|---|---|
| Advisor incentive | Parts and labor revenue commission |
| Revenue / repair order | Up 22% |
| Repeat service visits | Down 15% |
| Online rating | 4.5 to 3.8 |
| Unnecessary-work warranty complaints | Doubled |