We collaborate with a retailer operating 70 stores in Austria, Germany and Switzerland. The retailer employs salesworkers whose main task is to sell the firm's products in the stores. Depending on their earned revenue the workers can receive a monthly bonus. Workers have some autonomy regarding the pricing of the products, meaning that they can give discounts to the customers. Giving a discount makes it easier to sell the product, but it also reduces the revenue per product sold so that workers should internalize part of the costs associated with a discount. Still, the firm's managers feel that workers offer too high discounts. The intervention thus restricts the workers' autonomy to give discounts. In the RCT, a specific change to the current discount system is considered, and this change is implemented in (about) half of the firm's stores. The other half of stores continues to operate under the original system. The planned change in the treatment group is as follows:
Treatment: The store manager (or the assistant store manager) needs to authorize every discount, so that the sales workers need permission by the store manager (or the assistant store manager) to grant a discount.
We further conduct employee surveys to measure employee attitudes and detect information spillovers between stores in different treatment groups.