You Make the Call-Situation 2

question 67

Essay

You Make the Call-Situation 2
Tom Anderson started his records storage business in the New York metropolitan area in 1991. His differentiation strategy was to offer competitive prices while providing state-of-the-art technology, easy access to his warehouse, and, of course, great service.
After opening the business, Anderson learned that most potential customers had already signed long-term storage contracts with competitors. These contracts included a removal fee for each box permanently removed from the storage company's warehouse, making it difficult for customers to consider switching.
Anderson believes that the survival of his company hinges on his view of what the essence of his business is. In other words, is he operating a storage company or a real estate business? He is convinced that he must answer this question before making any decision regarding pricing strategy.

Recognize the role of intuition in quick decision-making and the formation of first impressions.

Grasp how motivated reasoning and confirmation bias can lead to biased evaluations of evidence.

Identify strategies for overcoming belief perseverance, such as considering the opposite.

Understand how consumer behavior is influenced by the presentation of information.

---

Definitions:

Dictator Game

An experimental game in economics where one player, the "dictator," determines how to divide an endowment (such as a sum of money) between themselves and the second player, studying social preferences like altruism.

Total Control

A situation where all aspects of a process or system are under the direct authority and regulation of a single entity.

Dictator Game

A behavioral economic experiment where one participant, the "dictator," determines how to split an amount of money between themselves and another participant.

Behavioral Economists

Researchers who study the psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.