Template - Chapter 8 activities

Determine the two best decision alternatives by a pessimistic decision maker. Decision dl d2 d3 d4 d2 and d4 Od1 and d4 Od1 and d2 d3 and d4 States of Nature $1 320 280 d1 and d3 170 450 $2 425 -160 100 220 83 -150 160 325 -175

38 When you go to a supermarket and end up buying something that you didn't intent to buy, this is an example of making a A) rational decision B) intuitive decision C) escalation of commitment D) irrational decision E) bounded decision

Choose the letter of the correct answer on each questions being asked for each case 1. If the decision maker knows nothing about the probabilities of the four states of nature, what is the recommended decision using MAXIMAX CRITERION? D1 D2 D3 D4   2. What decision alternative will he choose if using MAXIMIN CRITERION?   D1 D2 D3 D4   3. What about MINIMAX REGRET CRITERION?   D1 D2 D3 D4   4. What decision would he make if using criterion of realism at alpha 0.6 is used?    D1 D2 D3 D4

Answer the following MCQ questions.  1) When Delroy draw on well-developed procedures in his job of grocery store inventory clerk to determine which products to stock first, he is making which type of decision? a) Tactical b) Programmed c) Operational d) Non-Programmed 2) Identifying a problem and matching it with established routines and procedures for resolving it is a ? a) Tactical decision b) Programmed decision c) Operational decision d) Non-Programmed decision 3) Crystal is a marketing manager who is deciding how to allocate the financial resources among three different product launches over the next three months years. Crystal is making a ? a) Strategic decision b) Operational decision c) Tactical decision d) Opportunistic decision

Compare and contrast the option to make or buy. What factors would one need to consider while making such a decision?

What are the advantages of predictive analytics?

Use the following information to answer multiple-choice Questions 21 to 30. A fibre glass company is considering the possibility of introducing a new product. Because of the expense involved in developing the initial moulds and acquiring the necessary equipment to produce fibreglass, it has decided to conduct a pilot study to make sure that the market will be adequate. They estimate that the pilot study will cost £12,000. Furthermore, the pilot study can be either successful or unsuccessful. The basic decisions are to build a large manufacturing facility, a small manufacturing facility, or no facility at all. With a favourable market, the company can expect to make £100,000 from the large facility or £60,000 from the smaller facility. If the market is unfavourable, however, they estimate that they would lose £40,000 with a large facility, while they would lose only £30,000 with the small facility. The company estimates that the probability of a favourable market given a successful…

A health group wants to identify consumers who: once went to a competing primary care group but left that group, have at least one child, and live in the primary service area of the town’s hospital. Write the questions to target this population and suggest the best method for getting this information. There are several questions that could help target this population.

CHOOSE THE BEST ANSWER  17- Since the world is constantly changing, and new circumstances or trends can dramatically affect how you do business, it is therefore advisable for marketers to do: Group of answer choices myopic planning long-term planning only contingency planning static marketing plans 14- Which implementation approach does the book say is more advantageous because it moves some decision-making authority closer to the frontline people in the company? Group of answer choices Implementation through Change Implementation by Command Implementation through Consensus Implementation by Authority

Chapter 14 discusses the types of consumer decisions.a. Which type(s) of decision making would purchasing a sandwich from a quick service restaurant(QSR) be?b. Which type of decision making are marketersat Wawa hoping that the mobile app willencourage consumers purchasing a sandwichfrom a QSR to be?c. Assume that purchasing a sandwich from a QSRis categorized as nominal decision making in agiven situation. Which of the two categories ofthis type of decision making is purchasing a sandwich from a QSR most likely to be? Why?

During the development of alternatives phase of decision making the manager must determine the underlying casual factors associated with the decision situation. True or False

Decision-making framework: You will use the DECIDE model to make your decision. The DECIDE model is a six-step decision-making framework that stands for: Define the problem Establish the criteria Consider all the alternatives Identify the best alternative Develop and implement a plan of action Evaluate and monitor the decision Scenario: Imagine that you are the CEO of a small business that sells handmade jewelry. Your business has been growing steadily for the past few years, and you are now considering expanding into a new market. You have narrowed down your options to two cities: New York City and Los Angeles. Instructions: Use the DECIDE model to make a decision about which city to expand into. Be sure to include all of the steps in the DECIDE model in your post. Be as specific as possible when describing your scenario. What are the pros and cons of each city? What are the criteria that you will use to make your decision?

A new buy, developed buy, and straight rebuy are the three decision options in the business buying process. Select one: True False

ADVERSE SELECTIONSomet Health Insurance Company wants to sell a health insurance product for $700 permonth. There is no requirement for healthy people to have insurance coverage. Thecompany conducts a survey to see how different populations respond to the proposed cost.People with no illnesses and disabilities, generally the young and healthy, respond that theydo not spend $700 on healthcare in an entire year, and most feel they would not waste somuch money on premiums when the chance of needing surgery or expensive healthcaretreatments is so small. However, older, sicker people think that $700 per month is a greatdeal, as most of them spend far in excess of this amount on healthcare. It seems like agreat deal for them.1. If the company offers this product, how will adverse selection affect it?

Suppose you are a manager in some leading firm / organization. The owner of the firm wants you to uplift the profit of the firm by introducing some new commodity in the market. Explain all decision making process relating to successfully introducing your commodity in the market.

Please offer a resolution to the following case utilizing both utilitarian and deontological approaches then explain which approach renders the best course of action. A major tobacco company has proposed that its new CEO be nominated to the board of directors of a three-hospital regional health system.  The CEO lives and works in the community.  In addition to suggesting membership on the board, the tobacco firm has indicated a willingnes to sponsor or cosponsor a variety of health promotion activities in the community, with special outreach to children and persons who are economically disadvantaged.  The health system's senior management team is divided about whether to proceed with the nomination.  Some believe that because the CEO brings much needed expertise in the areas of finance and investment, he is a good candidate for the board.  Others believe that, despite these qualifications, such a nomination might be viewed as supporting the tobacco companies product and…

Can you describe the difference between a rational decision and a non-rational decision?

d. What is the best decision alternative using MINIMAX REGRET decision criterion? e. What is the best decision alternative using criterion of realism at alpha = 0.8?

You are on the lookout for a new smartphone after your old unit has gone kaput. Given so many brands available in the market, you were confused and undecided about the purchase to give you the optimum solution. a. Illustrate the EIGHT (8) steps of decision making graphically as suggested in the Decision-Making Process model.

When is it acceptable to use estimated monetary value as a decision criterion? When isn't it acceptable to use it?

You are a marketing manager for a food products company, considering the introduction of a new brand of organic salad dressings. You need to develop a marketing plan for the salad dressings in which you must decide whether you will have a gradual introduction of the salad dressings (with only a few different salad dressings introduced to the market) or a concentrated introduction of the salad dressings (in which a full line of salad dressings will be introduced to the market). You estimate that if there is a low demand for the salad dressings, your first year’s profit will be $1 million for a gradual introduction and million (a loss of $5 million) for a concentrated introduction. If there is high demand, you estimate that your first year’s profit will be $4 million for a gradual introduction and $10 million for a concentrated introduction. The payoff table for the organic salad dressings marketing is given as follows:     Low Demand High Demand Gradual 1 4…

You are a marketing manager for a food products company, considering the introduction of a new brand of organic salad dressings. You need to develop a marketing plan for the salad dressings in which you must decide whether you will have a gradual introduction of the salad dressings (with only a few different salad dressings introduced to the market) or a concentrated introduction of the salad dressings (in which a full line of salad dressings will be introduced to the market). You estimate that if there is a low demand for the salad dressings, your first year’s profit will be $1 million for a gradual introduction and million (a loss of $5 million) for a concentrated introduction. If there is high demand, you estimate that your first year’s profit will be $4 million for a gradual introduction and $10 million for a concentrated introduction. The payoff table for the organic salad dressings marketing is given as follows:     Low Demand High Demand Gradual 1 4…

Describe a business situation in which a Two-sample Test for the Difference in Means would support decision-making.  Please do not use examples from the textbook.

Using a major purchase of your choice, apply and evaluate the high involvement decision-making process to each of the stages

A step in decision-making process which involves a manager uncover the risks involved or difficulties which need to be overcome when implementing the options. *     Step 7: Select the options to pursue       Step 8: Analyze the risks       Step 5: Establish decision-making criteria       Step 6: Evaluate the options against the criteria

How would you go about managing the database for iTunes? How can predictive analytics help you determine which bands and films will sell the most tickets in the next year?

Discuss the basic premise of the rational (classical) model of decision making and how does it differ from the rationality model.