You recently observed a meeting between Ron, (a production manager at your company) and a sales representative from “Big Machines Inc”. Big Machines Inc last year sold your company a major piece of production equipment. They are now trying to sell your company additional options and services for that same piece of equipment.
The salesperson has come prepared. In addition to glossy brochures she shows you and Ron a Powepoint presentation complete with video outlining the advantages of adding the additional items and services. Ron is impressed by the facts presented and the video showing the options in action. In particular Ron is drawn to the facts regarding additional cost savings. Ron expresses serious concern about the additional price of the options and services. The salesperson approaches the topic of “cost” with great skill explaining that “While the initial investment may seem rather steep, I think you’ll find over the life of the equipment that the cost of these options averages out to about $1.00 a day. I think you’ll find that’s less than the cost of a can of soda a day. Isn’t the potential for greater efficiencies and possible cost savings worth the cost of a daily can of soda?”
Ron, after hearing all this information admits that this sounds reasonable and agrees to purchase the additional options and service.
As the observer your objective is to prepare a research paper addressing the decision making in this situation. Your paper should address and discuss the following:
Identify how Ron "framed" his decision. To identify his frame you will need to outline or flowchart his thought process (a way of identifying his decision frame).
What factors would have led Ron to come to a different decision (in other words an alternative “frame”)
What do you believe are the implications of "framing" on our decisions and in particular on our attempts to influence others??
How is it you would like us to HELP without being forced to DO the work for you? Check the spelling of "Powerpoint" as that caught my eye.
Sra
Project should be removed as it is a copyrighted assignment question from a college course and is the intellectual property of the professor.
How is it you would like us to HELP without being forced to DO the work for you? Check the spelling of "Powerpoint" as that caught my eye.
Research Paper: Decision Making in the Meeting between Ron and the Sales Representative from "Big Machines Inc"
Introduction:
In this research paper, we will analyze the decision-making process of Ron, the production manager, during a meeting with a sales representative from Big Machines Inc. The sales representative presents additional options and services for a major piece of production equipment that the company had previously purchased. We will outline Ron's decision frame, discuss alternative frames that could have led to a different decision, and examine the implications of framing on our decisions and attempts to influence others.
1. Ron's Decision Frame:
To identify Ron's decision frame, we can outline his thought process using the following flowchart:
a) Meeting with Sales Representative
- Ron attends a meeting with the sales representative from Big Machines Inc.
- The representative presents glossy brochures and a PowerPoint presentation with a video showcasing the advantages of the additional options and services.
- Ron is impressed by the facts presented and the video demonstration.
b) Concern about Additional Costs
- Ron expresses serious concern about the price of the options and services.
- The salesperson skillfully approaches the topic of cost by presenting the average cost of the options as $1.00 per day, comparing it to the cost of a daily can of soda.
- Ron considers the potential for greater efficiencies and cost savings, which influences his decision-making process.
c) Agreement to Purchase Additional Options and Service
- Ron, convinced by the salesperson's argument about cost and potential benefits, agrees to purchase the additional options and service.
2. Alternative Frames and Decision Outcomes:
Given the complex nature of decision-making, several alternative frames could have led Ron to a different decision:
a) Alternative Financial Frame
- If Ron had focused solely on the financial aspect and analyzed the long-term cost-benefit analysis of the additional options and services, he might have come to a different decision.
- Considering the initial investment, maintenance costs, and expected ROI over the life of the equipment, Ron may have decided that the benefits do not outweigh the costs.
b) Risk-averse Frame
- If Ron had a risk-averse decision frame, he might have been more cautious about investing in additional options and services.
- Ron could have analyzed potential risks and uncertainties associated with the equipment and the additional features, leading him to opt for a more conservative approach.
3. Implications of Framing on Decision-Making and Influence:
Framing plays a crucial role in decision-making and our attempts to influence others. It can have the following implications:
a) Perception Bias:
- Framing influences how we perceive information, emphasizing certain aspects and downplaying others.
- In Ron's case, the sales representative framed the cost of options and services as minimal compared to the potential benefits, leading Ron to perceive the investment as reasonable.
b) Emotional Appeal:
- Effective framing can tap into emotions and sway decision-making.
- The salesperson used a relatable analogy of the cost of a daily can of soda, appealing to Ron's emotions and making the investment seem insignificant.
c) Influence Techniques:
- Framing can be used as a persuasive technique to influence others.
- The sales representative strategically framed the cost as a daily expense, making it seem more manageable and justifiable to Ron, ultimately influencing his decision to purchase the additional options and services.
Conclusion:
Understanding how decision frames shape our choices and how framing can influence decision-making is crucial. Ron's decision to purchase the additional options and services was influenced by the framing of cost as a daily expense compared to a can of soda. Recognizing alternative frames can provide valuable insights into decision outcomes, enabling individuals to make more rational and well-informed choices. Additionally, understanding the power of framing can empower individuals to critically evaluate attempts to influence their decisions.