Case 11.1 ​

question 61

Multiple Choice

Case 11.1
​
Wayne is making a sales call on a new client company.The previous sales professional servicing this account,Tom,left to join another company.Wayne had liked Tom the moment he met him but thought of him as a bit of a slob because of the way he always chewed gum.
​
Wayne is calling on Cassandra,the operations manager for this company.She is a middle-level manager.As Wayne walks into Cassandra's office,he notes her expensively tailored suit,her professional demeanor,the simple cologne,and the lack of jewelry.Cassandra's appearance and office décor are reminiscent of the VP's office in Wayne's own company.
​
During the sales call Wayne is somewhat nervous.He stutters occasionally during the presentation,stumbles over the answers to a couple of Cassandra's questions,and tends to end his statements with a question.At the end of the call,Cassandra thanks him for his visit and the information,and walks out to the main entrance with him,making casual conversation.They shake hands,and Wayne goes on to his next sales call.As she walks back to her office,she thinks,"Should I do business with a company represented by someone with so little self-confidence?"
-Refer to Case 11.1.Wayne's first impression of Tom is an example of​

• A) ​the power of facts to shape impressions.
• B) ​the importance of properly selecting your career apparel.
• C) ​a handshake shaping someone's impression of you.
• D) ​the primacy effect.

Recognize the role of reactance theory in behavior and decision-making.

Distinguish between status quo bias and omission bias in decision-making.

Analyze the characteristics and implications of being an entity theorist versus an incremental theorist.

Identify different forms of decision avoidance and their underlying reasons.

---

Definitions:

Departments

Divisions within an organization, each responsible for specific functions or tasks.

Departmental Predetermined Overhead Rates

Rates calculated in advance for each department, used to assign overhead costs based on estimated activity levels.

Machine-Hours

A measure of the total time that machines are operating, often used as a basis for allocating manufacturing overhead costs.

Markup

The amount added to the cost price of goods to cover overhead and profit, resulting in the selling price.