​Data Driven Decision Making

Essay

​Data Driven Decision Making
Kroger Groceries provides store managers flexibility to determine prices for a number of popular items they carry because demand is affected primarily by local conditions that managers are more aware of.To make sure managers use this discretion wisely,managers are rewarded with bonuses based on quarterly sales.With improvements in data collection and analysis,the "quants" in corporate headquarters can run many small experiments.Doing so allows them to understand nuanced patterns in consumer demand that had been un-noticed previously.How does this affect manager compensation?