Greg Is Working as a Marketing Trainee for an Online

question 48

Multiple Choice

Greg is working as a marketing trainee for an online music and video retailer. His boss called a meeting for next week with one thing on the agenda: "Bring with you your ideas about how we can gain a competitive advantage." Greg plans to provide the following response:

• A) create a management-driven environment with lots of employee training.
• B) create a customer-driven environment where we constantly try to create customer value.
• C) restructure the organization so that there is always a manager on duty to chat with online customers who are having problems with their orders.
• D) always match the promotions of our competitors. Price is the only thing customers care about.

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Definitions:

Base-Rate Information

Statistical information about the frequency of events or characteristics within a given population.

Availability Heuristic

An intuitive leap based on readily recalled examples when considering a particular subject, notion, approach, or judgment.

Representativeness Heuristic

The representativeness heuristic is a cognitive bias in which an individual categorizes a situation based on how similar the aspects are to the prototypes the person holds in their mind.

Cognitive Map

An internal representation of the spatial relationships between objects or locations in an individual's environment.