Carefully Explain the Difference Between and the Rationale for Selecting

question 47

Essay

Carefully explain the difference between and the rationale for selecting a strategy of related diversification and/or a strategy of unrelated diversification.

---

Definitions:

Foot-In-The-Door Technique

The foot-in-the-door technique is a persuasion strategy where agreeing to a small request increases the likelihood of agreeing to a larger request later.

Lowballing Effect

A psychological phenomenon where an initially lower cost is presented to secure agreement, followed by the revelation of additional costs.

Social Commitment

An individual's sense of responsibility or duty towards society, which can influence behavior and decisions towards achieving societal wellbeing.

Self-Perception Processes

The ways in which individuals come to understand their own attitudes, emotions, and core self through their behaviors and actions.