A highly risk-averse decision maker will often react to bounded rationality by
Answer(s): A
Rational decision making is almost always subject to limitations that make the certain determination of the optimal decision impossible. Avery risk-averse decision maker may reactor such uncertainly by satisfying, that is, choosing an adequate course of action that is perceived to be safe. Satisfying thus leads to decisions that are not only less than optimal but also less than the best available.
A chief executive officer (CEO) believes that a major competitor may be planning a new campaign. The CEO sends a questionnaire to key personnel asking for original thinking concerning what the new campaign may be. The CEO selects the best possibilities then sends another questionnaire asking for the most likely option. The process employed by the CEO is called the
Answer(s): B
The Delphi Technique is a forecasting or decision making approach that attempts to avoid groupthink (the tendency of individuals to conform to what they perceive to be the consensus). The technique allows only written, anonymous communication among group members. Each member takes a position on the problem at hand. A summary of these positions is communicated to each member. The process is repeated for several iterations as the 1members move toward a consensus. Thus, the Delphi technique is a qualitative, not quantitative, technique.
A company has a computer that it no longer needs because of a discontinued operation. Currently, there are several computer projects that may be able to use the machine but some modification will be necessary if such new application is to be successful. Which of the following techniques is most appropriate to use?
Attribute listing is applied primarily to improve a tangible object. It lists the parts and essential features of the object and systematically anoles modifications intended as improvements.
A company is about to introduce a new service and wishes to develop a new slogan and logo to be used in advertising and on company publications. You have been chosen to participate in this process and to look at past slogans, logos, and suggestions given by the advertising agency. You are not limited to the suggested ideas and have been encouraged to suggest original ideas of your own. Which of the following techniques is most appropriate to use?
Answer(s): C
Free association is an approach to idea generation that reports the first thought to come to mind in response to a given stimulus, for example, a symbol or analogy pertaining to a product for which an advertising slogan is sought. The objective is to express the content of consciousness without censorship or control.
A company wishes to determine what advertising mix of radio, television, and newspapers offers the optimal desired result in increased sales and improved public image. Which of the following techniques is most appropriate to use?
Value analysis is a methodical approach primarily designed to optimize performance of an activity at a minimum cost. Emphasis is on the cost-benefit criterion.
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