• Title/Summary/Keyword: two-action problem

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Interpreting Bounded Rationality in Business and Industrial Marketing Contexts: Executive Training Case Studies (집행관배훈안례연구(阐述工商业背景下的有限合理性):집행관배훈안례연구(执行官培训案例研究))

  • Woodside, Arch G.;Lai, Wen-Hsiang;Kim, Kyung-Hoon;Jung, Deuk-Keyo
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.3
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    • pp.49-61
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    • 2009
  • This article provides training exercises for executives into interpreting subroutine maps of executives' thinking in processing business and industrial marketing problems and opportunities. This study builds on premises that Schank proposes about learning and teaching including (1) learning occurs by experiencing and the best instruction offers learners opportunities to distill their knowledge and skills from interactive stories in the form of goal.based scenarios, team projects, and understanding stories from experts. Also, (2) telling does not lead to learning because learning requires action-training environments should emphasize active engagement with stories, cases, and projects. Each training case study includes executive exposure to decision system analysis (DSA). The training case requires the executive to write a "Briefing Report" of a DSA map. Instructions to the executive trainee in writing the briefing report include coverage in the briefing report of (1) details of the essence of the DSA map and (2) a statement of warnings and opportunities that the executive map reader interprets within the DSA map. The length maximum for a briefing report is 500 words-an arbitrary rule that works well in executive training programs. Following this introduction, section two of the article briefly summarizes relevant literature on how humans think within contexts in response to problems and opportunities. Section three illustrates the creation and interpreting of DSA maps using a training exercise in pricing a chemical product to different OEM (original equipment manufacturer) customers. Section four presents a training exercise in pricing decisions by a petroleum manufacturing firm. Section five presents a training exercise in marketing strategies by an office furniture distributer along with buying strategies by business customers. Each of the three training exercises is based on research into information processing and decision making of executives operating in marketing contexts. Section six concludes the article with suggestions for use of this training case and for developing additional training cases for honing executives' decision-making skills. Todd and Gigerenzer propose that humans use simple heuristics because they enable adaptive behavior by exploiting the structure of information in natural decision environments. "Simplicity is a virtue, rather than a curse". Bounded rationality theorists emphasize the centrality of Simon's proposition, "Human rational behavior is shaped by a scissors whose blades are the structure of the task environments and the computational capabilities of the actor". Gigerenzer's view is relevant to Simon's environmental blade and to the environmental structures in the three cases in this article, "The term environment, here, does not refer to a description of the total physical and biological environment, but only to that part important to an organism, given its needs and goals." The present article directs attention to research that combines reports on the structure of task environments with the use of adaptive toolbox heuristics of actors. The DSA mapping approach here concerns the match between strategy and an environment-the development and understanding of ecological rationality theory. Aspiration adaptation theory is central to this approach. Aspiration adaptation theory models decision making as a multi-goal problem without aggregation of the goals into a complete preference order over all decision alternatives. The three case studies in this article permit the learner to apply propositions in aspiration level rules in reaching a decision. Aspiration adaptation takes the form of a sequence of adjustment steps. An adjustment step shifts the current aspiration level to a neighboring point on an aspiration grid by a change in only one goal variable. An upward adjustment step is an increase and a downward adjustment step is a decrease of a goal variable. Creating and using aspiration adaptation levels is integral to bounded rationality theory. The present article increases understanding and expertise of both aspiration adaptation and bounded rationality theories by providing learner experiences and practice in using propositions in both theories. Practice in ranking CTSs and writing TOP gists from DSA maps serves to clarify and deepen Selten's view, "Clearly, aspiration adaptation must enter the picture as an integrated part of the search for a solution." The body of "direct research" by Mintzberg, Gladwin's ethnographic decision tree modeling, and Huff's work on mapping strategic thought are suggestions on where to look for research that considers both the structure of the environment and the computational capabilities of the actors making decisions in these environments. Such research on bounded rationality permits both further development of theory in how and why decisions are made in real life and the development of learning exercises in the use of heuristics occurring in natural environments. The exercises in the present article encourage learning skills and principles of using fast and frugal heuristics in contexts of their intended use. The exercises respond to Schank's wisdom, "In a deep sense, education isn't about knowledge or getting students to know what has happened. It is about getting them to feel what has happened. This is not easy to do. Education, as it is in schools today, is emotionless. This is a huge problem." The three cases and accompanying set of exercise questions adhere to Schank's view, "Processes are best taught by actually engaging in them, which can often mean, for mental processing, active discussion."

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Sustainable Development and Sustainability Marketing - Integration of customer and socio-ecological aspect in Marketing concept - (글로벌 기업 환경 변화의 새로운 패러다임으로서 지속가능한 발전과 마케팅 - 지속가능마케팅의 의사결정 지향적 컨셉 -)

  • Nam, Sang-Min;Kim, Jong-Ho;Noh, Jung-Koo
    • Journal of Global Scholars of Marketing Science
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    • v.17 no.3
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    • pp.83-108
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    • 2007
  • Since the 1992 UN Conference for Environment and Development held in Rio de Jaineiro, Sustainable Development has become the global thesis. More than 170 countries signed the Agenda 21 for the sustainable action plan, and adopted the sustainability concept as the key concept of dealing with the environmental, social, ethical, and economic problem. Sustainability is one of the main marketing challenges in the 21st century. By integrating social and ecological criteria, marketing may can make valuable contributions to sustainable development. Regarding the sustainability marketing, it is difficult to find the domestic marketing research on the thesis of sustainable development, and this is the definite evidence that the Korean marketing researchers do not realize the importance of the thesis of sustainable development which is internationally suggested as the new paradigm of change. The purpose of this study is to build the conceptual background and explore the research direction in order to introduce and adopt the concept of sustainable development in the domestic marketing research field. The present paper proposes a comprehensive conception of sustainability marketing, defined by six step: analysis of social-ecological problems; analysis of consumer behavior; normative sustainability marketing; strategic sustainability marketing; instrumental sustainability marketing; and transformative sustainability marketing. The aim of the paper are to clarify the concept of sustainability marketing. To accomplish this research purpose we discuss the sustainable development which is the conceptual background of sustainability marketing, analyze the characteristics of the sustainability marketing, and finally summarize the research results and present the suggestions for further research. Sustainability marketing embraces the idea of sustainable development, a development that meets the needs of the present without compromising the ability of future generation to meet their own needs. Sustainability Marketing goes beyond conventional marketing thinking. If marketing is about satisfying customer needs and building profitable relationships with customers, sustainability marketing may be defined as building and maintaining sustainable relationships with customers, the social environment and natural environment. By creating social and environmental value, sustainability marketing tries to deliver and increase customer value. Sustainability Marketing aims at creating customer value, social value and environmental value. Sustainability marketing integrates social and ecological criteria into the whole process of marketing, and can be differentiated in six steps: (1) Analysis of the social and ecological problems, generally and specifically with respect to products which satisfy customer needs and wants; (2) Analysis of customer behavior with special aspect to social and ecological concerns; (3) Corporate commitments to sustainable development in the mission statement, development of sustainability visions, formulation of sustainable principles and guideline, setting of socio-ecological marketing objectives and goals (normative aspects of sustainability marketing); (4) Sustainability segmentation, targeting and positioning, and timing of market entry(strategic aspects of sustainability marketing); (5)Integration of social and ecological criteria into the marketing-mix, i.e. products, services and brands, pricing, distribution and communication(instrumental aspects of sustainability marketing); (6) Participation in public and political change processes, which transform existing institutions towards sustainability(transformative aspects of sustainability marketing). The first two steps begin with an analysis of the company situation. In sustainability marketing it is crucial not just to know consumer needs and wants, but also to find out about the ecological and social problems of products along their whole life cycle. The intersection of socio-ecological problems and consumer wants sets the ground for sustainability marketing. Step three to five describe the implementation of sustainability marketing. Social and ecological criteria are fully integrated into the mission statement, strategies and marketing-mix. Step six is one of the specifics of sustainability marketing. It is about the commitment of company to sustainable development and their active participation in public and political processes in order to change the existing framework in favor of sustainability.

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The Study of Effectiveness of MERS on the Law and Remaining Task (국내 메르스(MERS) 사태가 남긴 과제와 법률에 미친 영향에 대한 소고(小考))

  • Yoon, Jong Tae
    • The Korean Society of Law and Medicine
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    • v.16 no.2
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    • pp.263-291
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    • 2015
  • In May, 2015, a 68 years old man, who has been Middle East Saudi Arabia and the United Arab Emirates, had high fever, muscle aches, cough and shortness of breath. he went two local hospital near his house and the S Medical Center emergency center. He was diagnosed MERS(Middle East respiratory syndrome) and the diseases had put South Korea the fear of epidemics for three months. Especially, this disease has firstly reported in Middle East Asia in September 2012 and spreaded to twenty-six countries. In 21, July, 2015, European Center for disease prevention and control reported 533 people were died and in South Korea, 186 people were infected, 36 people were died and 16,693 people were isolated from MERS. South Korea government were faced into epidemic control and blamed from public. Especially, hospital acquired infection, disease control chain, opening of information, ventilation, lack of isolation bed, the problem of function of local health center, the issue of reparation for hospital and insurance cover rate, the classification of disease, the role of Korea Centers for disease control and prevention, the culture of visiting hospital to see sick people, the issue of hospital multiple room and other related social support policy. it is time to study and discuss to solve these problems. South Korea citizens felt fear and fright from MERS. What is wore, they thought the dieses were out of their government control. It was unusual case for word except Middle East Asia. numerous tourists canceled visiting korea. South korea economic were severly damaged especially, tourism industry. South korea government should admit that they had failed initial action against MERS and take full reasonability from any damages. The government have to open information to public in terms of epidemic diseases and try to prevent any other epidemic diseases and try to work with local governments.

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