Implications of framing on decision

Assignment Help Business Management

Reference no: EM1334024

Details: You recently observed a meeting between Ron, (a production manager at your company) and a sales representative from "Big Machines Inc". Big Machines Inc last year sold your company a major piece of production equipment. They are now trying to sell your company additional options and services for that same piece of equipment.

The salesperson has come prepared. In addition to glossy brochures she shows you and Ron a PowerPoint presentation complete with video outlining the advantages of adding the additional items and services. Ron is impressed by the facts presented and the video showing the options in action. In particular Ron is drawn to the facts regarding additional cost savings. Ron expresses serious concern about the additional price of the options and services. The salesperson approaches the topic of "cost" with great skill explaining that "While the initial investment may seem rather steep, I think you'll find over the life of the equipment that the cost of these options averages out to about $1.00 a day. I think you'll find that's less than the cost of a can of soda a day. Isn't the potential for greater efficiencies and possible cost savings worth the cost of a daily can of soda?"

Ron, after hearing all this information admits that this sounds reasonable and agrees to purchase the additional options and service.

As the observer your objective is to prepare a research paper addressing the decision making in this situation. Your paper should address and discuss the following:

Identify how Ron "framed" his decision. To identify his frame you will need to outline or flowchart his thought process (a way of identifying his decision frame).

What factors would have led Ron to come to a different decision (in other words an alternative "frame")

What do you believe are the implications of "framing" on our decisions and in particular on our attempts to influence others?

Reference no: EM1334024

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