Answer the following statements true (T) or false (F)

Question

1. Luis, the sales manager of IT Sales, mentioned to his assistant, Marla, "I just got off the phone with one of our best customers and he told me about quite a few customer service issues, and I'm glad he took the time to call. You know, most people will not call a company when they have a problem; they just tell friends, family, and coworkers." This statement about who customers call when complaining about faulty customer service is accurate.
2. The rational model assumes that managers have complete information, are able to make an unemotional analysis, and are able to make the best decision for the organization.
3. Nonrational models of decision making assume that managers have complete information and are able to make the best decision for the organization.
4. With satisficing, managers look for alternatives until they find one that is satisfactory, not optimal.

Answer 1

1. TRUE
The problem with faulty customer service is that sometimes the company may be the last to hear about it, but a great many other potential customers may hear of it by word of mouth. One study found that only 6% of shoppers who experienced a problem with a retailer contacted the company. However, 31% went on to tell friends, family, and colleagues what had happened.
2. TRUE
The rational model makes some highly unrealistic assumptions: that managers have complete information, are able to make an unemotional analysis, and are able to make the best decision for the organization.
3. FALSE
The nonrational models are descriptive rather than prescriptive. They describe how managers actually decisions rather than how they . They assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions.
4. TRUE
In the satisficing model, managers seek alternatives until they find one that is satisfactory, not optimal. In the incremental model, managers take small, short-term steps to alleviate a problem, rather than steps that will accomplish a long-term solution.