A Study on Decision Making Strategies(MBA Marketing)
A Study on Decision Making Strategies(MBA Marketing) Abstract This paper focuses on marketing decisions made by managers as their performance declines. We examine how performance decline may result in a rigid decision-making process and decision characteristics that reflect a narrowing of attention and increased risk seeking, drawing on Ocasio's (1995) reconciliation of theories of failure-induced change and threat-rigidity. Furthermore, we consider how incentive pay may affect the marketing decision-making process and decision characteristics of managers during performance decline, drawing on managerial compensation research. Using a simulation game with experienced Chinese managers, our findings show that performance decline reduces the comprehensiveness of the marketing strategy process while increasing reliance on short-term marketing decisions, strategic change, and strategic risk taking. Furthermore, incentive pay softens managers' rigid decision-making processes while h...