Research on service compensation is rare. In this article we examine different compensation rules for integrated services (IS) which are produced jointly by a service provider and his client. Examples are consulting, advertising or management training. We distinguish three different compensation rules and compare them with joint profit maximization where both, service provider and client act as one organizational unit. The ompensation rules are (1) the input based compensation (IBC) characterized by a compensation that is based on work hours or work days, (2) the sales based compensation (SBC) with the compensation based on client’s sales and (3) the profit based compensation (PBC) with compensation based on client’s profits. We can show that under reasonable, realistic conditions the IBC (surprisingly) leads to better results for the service provider and for the client as compared to the PBC and the SBC.
Identifer | oai:union.ndltd.org:DRESDEN/oai:qucosa:de:qucosa:16322 |
Date | 21 September 2017 |
Creators | Löbler, Helge, Posselt, Thorsten, Welk, Martin |
Publisher | Springer |
Source Sets | Hochschulschriftenserver (HSSS) der SLUB Dresden |
Language | English |
Detected Language | English |
Type | info:eu-repo/semantics/acceptedVersion, doc-type:article, info:eu-repo/semantics/article, doc-type:Text |
Rights | info:eu-repo/semantics/openAccess |
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