Apply the Principles of Escalating Commitment to the Following Situation

question 63

Short Answer

Apply the principles of escalating commitment to the following situation to carry it forward in time, imagining what would happen next: You are a marketing manager at PrintCards where you have for ten years had the most successful software for creation of all types of cards in the home or office environment. However, PrintCards is finally faced with competition from a more powerful software package, new to the marketplace, that came in at a price of half that of PrintCards. PrintCards quickly began to lose market share, but initially made no adaptation. New product could not be delivered for months into the future because of the timing of the product development cycle. You made a decision not to change the pricing structure of PrintCards because of your department's analysis that the old higher pricing structure was fitting for a product with such high name recognition. Market share continued to decline.

---

Definitions:

Collections

The process of pursuing payments of debts owed by individuals or businesses, typically referring to the accounts receivable department's efforts.

Merchandise Purchases

The acquisition of goods for resale, typically in a retail or wholesale business setting.

Cost of Goods Sold

The expenses directly tied to the creation of the products sold by a business.

Collections

The process of pursuing payments of debts owed by individuals or businesses, typically involving accounts receivable.