HA 347 ex. 8_Solutions - 11/6/2007 HA 347 Exercise 8: The...

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11/6/2007 HA 347 Exercise 8: The Over-Justification Effect The John Thomas Steakhouse frequency program is the perfect example of how a rewards program may seem effective in theory, but in reality actually amplifies the negative effects of extrinsic rewards on intrinsic value. For the most part, the elements of John Thomas card program fail to adhere to the proven philosophy that there is “no artificial incentive that can match the power of intrinsic motivation.” However, despite the fact that their frequency program violates many rules regarding the true effectiveness of extrinsic motivation, the program does have some redeeming qualities. Ways the program increases the negative effects of extrinsic rewards on intrinsic value Old Man’s Plan The basic theory behind the old man’s plan to get rid of the heckling children was to first reward a voluntary activity, then progressively reduce the rewards, and once the reward was gone the children would leave as well. The John Thomas card game can work in the same manner, which will negatively affect the consumers’ view of the restaurant. Consumers used go to John Thomas voluntarily, simply because of the intrinsic
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This homework help was uploaded on 02/20/2009 for the course H ADM 347 taught by Professor Mlynn during the Fall '07 term at Cornell University (Engineering School).

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HA 347 ex. 8_Solutions - 11/6/2007 HA 347 Exercise 8: The...

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