Tiffany Crowe works as a showroom executive at a clothing ...

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Tiffany Crowe works as a showroom executive at a clothing boutique in London. Today, she is in a positive mood and instantly greets and smiles at a customer who walks into the store. The customer feels welcomed by her response.
 
  While browsing the store, Crowe helps the customer with products and passes on her positive mood to the customer. The customer leaves the store feeling content with a smile on her face. Which of the following best describes this situation?
  A) emotional contagion
  B) positivity offset
  C) cognitive dissonance
  D) framing effect
  E) bandwagon effect

Question 2

Daichi Inc is a Japanese software development firm known for its high quality products. Recently, the company held its annual conference and awarded all those employees who were in the top five percent with substantial monetary rewards.
 
  Their performance was evaluated on the basis of target achievement, client feedback, and quality ratings. Employees whose performance had not changed drastically were given a minor raise and those who fared badly received no incentives. Many employees blamed the company for creating differences among employees because they felt that it would harm the company in the long run, but Daichi Inc truly believes that to retain and motivate its best performers, a large incentive is a good step. Daichi Inc is using a(n) ________ here.
  A) piece-rate plan
  B) employee stock ownership plan
  C) modular plan
  D) merit-based plan
  E) flexible benefits plan

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Answer to Question 1

A
Explanation: A) Emotional contagion refers to the process by which people's emotions are caused by the emotions of others. For instance, employees' emotions can transfer to the customer. The primary explanation is that when someone experiences positive emotions and laughs and smiles at you, you tend to respond positively. Emotional contagion is important because customers who catch the positive moods or emotions of employees shop longer.

Answer to Question 2

D
Explanation: D) A merit-based pay plan pays for individual performance based on performance appraisal ratings. Daichi Inc. rewarded these employees on the basis of meritorious performance.