Order ID:89JHGSJE83839 | Style:APA/MLA/Harvard/Chicago | Pages:5-10 |
Instructions:
1st long question (10 points)
A manager applied a proposed incentive program to a group of workers with the lowest productivity to see if it would increase productivity. Their productivity did indeed increase a month later. Give five plausible reasons for the rise in productivity. (2 points for every logical explanation found)
2nd long question (10 points)
Airlines frequently charge higher fares during peak seasons (such as the summer) than during off-peak seasons (such as the winter). The majority of customers think this practice is reasonable and do not object. Assume you own a small store and are the only one in the area that sells face masks.
Due to the recent COVID pandemic, there has been a significant increase in demand for face masks, and you have doubled the mask’s price. Many residents bought masks from you because they had no other option. They were, however, enraged and thought you were being unfair. Your store’s reputation has been severely harmed. Please list the key differences between what you did and what airlines do that you believe account for the disparity in consumer reactions in the two cases.
3rd long question (10 points)
You’re the CEO of a software development firm. Many people illegally copy your software from their friends and relatives rather than purchasing it. Propose two designs or strategies to make users feel more guilty if they copy your software. Psychological principles should be used to develop the strategies. For this question, lowering the price of your software, for example, is not an acceptable strategy.
4th long question (10 points)
COMPANY TORO
Toro began making tractor engines in 1914 and later expanded into lawn mowers. They added snow throwers in the early 1960s. By 1984, they had a complete line of “outdoor care” products for both institutional and residential customers. Residential lawn care products accounted for about 40% to 50% of sales, with snow throwers accounting for another 10% to 15%.
Snow thrower sales were routed through twenty-six regional distributors, who distributed snow throwers to independent retailers across the country, including hardware stores and lawn and garden centers.
the arctic circle (a number of regions near the Great Lakes in North America where heavy snowfall in the form of lake-effect snow is particularly common). Toro also sold snow throwers directly to mass merchandisers such as Marshall Field, whose private labels accounted for about 30-35 percent of Toro’s snow thrower sales. Despite the fact that snow throwers were sold all year, 60-70 percent of sales occurred in November, December, and January, with sales dropping off in the following months and becoming non-existent in the summer. Sales were particularly strong in the year after a particularly harsh winter, presumably because people resolved not to be “caught again.”
Toro’s product line included the lightweight power shovel, as well as single-stage and two-stage models. With suggested retail prices ranging from $270 to $440, the (smaller) single-stage machines were selling in excess of 100,000 units per year. The self-propelled two-stage machines, which cost between $640 and $1500, were selling at a rate of around 20,000 units per year.
These figures were a far cry from the heady days of the late 1970s, when several years of strong growth culminated in two years of exceptionally high sales, 1978-1979 and 1979-1980. Toro sold about 800,000 single-stage machines and 125,000 two-stage machines during that time. The three harsh winters that began in 1977-1978 created a demand that rewarded dealers for their aggressive inventories.
1980-1981 sales plummeted the following year. Dealers and distributors were left with unsold inventories that lasted up to three years in some cases. Toro not only had to forego the lost revenue as orders dwindled, but they also offered to cover some of their dealers’ massive holding costs. The following two winters were similarly mild, causing Toro’s fortunes to plummet. Snow removal equipment had become a source of dissatisfaction for dealers. The future looked bleak.
Questions
1) Why were consumers hesitant to buy snow throwers in general? (five points)
2) Explain some marketing/promotional strategies Toro could employ to boost sales. (five points)
5th long question (10 points)
You’re debating whether or not to invest $180,000 in a product development R&D project. There is a 50% chance that the project will be a success. If the project is successful, the company can choose between constructing a $400K large plant or a $200K small plant. The product’s market size could be large (with a 50% chance), medium (30%), or small (with a 10% chance).
a possibility), or a minor (20 percent probability). Over the life of the plant, the present value of net cash flows corresponding to sales in a large, medium, and small market is $1000K, $500K, and $500K, respectively.
Each is worth $250,000. A small plant, on the other hand, can only handle a small or medium market size, not a large one; in other words, the net cash flow in a large market is the same as it is in a medium market for a small plant.
1) Create a Decision Tree to represent these options. (eight points)
2) Determine 1) whether to invest in a large or small plant (2 points), and 2) whether to invest in this project at all based on the Decision Tree analysis (2 points).
Question 6 is a lengthy one (20 points)
Mike is a fisherman who lives on a small island in the middle of nowhere. He’s deciding between three possible jobs for today: A) working for a local store, with a guaranteed salary of HK$400; B) fishing in a small river near his home, where he could make either 0 (and no loss) or HK$1000 with equal probabilities; or C) fishing in the sea, where he could lose HK$200 (e.g., the cost of the boat) or make HK$1500 with equal probabilities.
Assume Mike’s expected utility (EU) function is x0.5, with x>=0, and his prospect theory (PT) value function is x0.5, with x>0, and she is twice as sensitive to a loss as she is to a gain of the same size. Mike’s probability of events weighting function is the same as his PT weighting function.
Which option will Mike choose if he is an expected value maximizer? Calculations to back up your conclusion (3 points).
If Mike’s current wealth is worth HK$100, what are EU(A), EU(B), and EU(C)? If Mike is an expected utility maximizer, which option will he choose based on the calculation? (three points)
6.3 If Mike’s current wealth is HK$300, what are EU(A), EU(B), and EU(C)? If Mike is an expected utility maximizer, which option will he choose based on the calculation? (You get 2 points)
6.4 If Mike’s current wealth is HK$2000, what are EU(A), EU(B), and EU(C)? If Mike is an expected utility maximizer, which option will he choose based on the calculation? (You get 2 points)
6.5 Assume Mike has just arrived on the island with HK$100 in his pocket and a daily living cost of HK$320. What kind of career path would you recommend for Mike based on your analysis of results from 6.2, 6.3, and 6.4 (assuming Mike is an expected utility maximizer)? (four points)
6.6 If Mike’s current wealth is worth HK$100, what are Prospect Theory V(A), V(B), and V(C)? If Mike is a PT utility maximizer, which option will he choose based on the calculation? (3
points)
6.7 If Mike’s current wealth is HK$2000, what are Prospect Theory V(A), V(B), and V(C)? If Mike is a PT utility maximizer, which option will he choose based on the calculation? (three points)
Questions about Behavioral decision-making and employee stimulation
RUBRIC |
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Excellent Quality 95-100%
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Introduction
45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Literature Support 91-84 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned. |
Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met. |
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Average Score 50-85% |
40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided. |
83-76 points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration. |
52-49 points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met. |
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Poor Quality 0-45% |
37-1 points The background and/or significance are missing. No search history information is provided. |
75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration. |
48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met |
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Questions about Behavioral decision-making and employee stimulation |
Questions about Behavioral decision-making and employee stimulation