This is interesting and indicative of a bigger problem.
Why isn't it most profitable for the stores to provide the best experience for customers in order to be most profitable?
Suppose there are two stores:
- Store A. Offers decent experience for the customer.
- Store B. Offers much better experience for the customer.
One would naively expect and hope that, given those two choices, more people would prefer to go to the better Store B and hence it would be more profitable. Hence the stores would try to do their best to serve the customer interests.
Why is it instead more optimal for stores not to optimize for the happiness of its customers?
Could it be because customers are not adept at recognizing which stores offer better experience for them, _and rewarding_ such stores by preferring them over other stores?
Why isn't it most profitable for the stores to provide the best experience for customers in order to be most profitable?
Suppose there are two stores:
- Store A. Offers decent experience for the customer.
- Store B. Offers much better experience for the customer.
One would naively expect and hope that, given those two choices, more people would prefer to go to the better Store B and hence it would be more profitable. Hence the stores would try to do their best to serve the customer interests.
Why is it instead more optimal for stores not to optimize for the happiness of its customers?
Could it be because customers are not adept at recognizing which stores offer better experience for them, _and rewarding_ such stores by preferring them over other stores?