for harvard university by lritzel - the management thinking mistakes files

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Some stories and interactions linked to Management dilemmas and thinking mistakes

By Lukas Ritzel 2013 www.wib.ch

For Haravrd course 2013

WiB Solutions Management Thinking Mistakes

App

managementthinkingmistakes.ch

http://denkfehler-app.wikispaces.com/home

http://denkfehler-app.wikispaces.com/home

310.04.2023

Let’s start with X-Mas

www..wib.ch by lukas ritzel / management thinking mistakes

• Research by Waldvogel (1993)


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How to improve the perceived value of a present (for lritzel)

4



How to improve the perceived value of a present (for lritzel)

5

Invest loads of love and time

Know the person and his/ her taste

Predict correctly something totally new which may delight

A perfect gift?

WIB_Dokumentname.pptx 620. April 2011

A perfect gift?


Perceived value 240$

A perfect gift? Can we top it?


A not perfect gift anymore?


Perceived value 175$

The paradox of gift giving


• More not better, says new study by Pamplin marketing professor

• The gift recipient is likely to perceive the iPod alone as more generous than the combination of the same player and a iTunes gift card.

• Pamplin: “The gift giver or presenter does not anticipate this difference in perspectives and has just cheapened the gift package by spending an extra $15 on it.”

1110.04.2023

Let’s try a little experiment (perhaps you can play it during new years party with friends)


• Note the last 5 digits of your security, or passport or even bank-account number on a piece of paper.


Now guess

1220. April 2011

• How many medical doctors exist in Switzerland?

Paste both figures into the blackboard chat


What has your number to do with the numbers of Swiss doctors?

1320. April 2011

• Nothing! > correct• But perhaps still something according to

Timothy Wilson, who has published a book “Strangers to Ourselves”, which was written here at Harvard with his longtime collaborator Daniel Gilbert

Your answer was influenced by the number you wrote down before


• A measurable difference exists, where people with a higher reference number (the one you noted on

your note based on your security number). Would in average guess a higher number for the doctors than the ones with a lower number on their notepage


Anchoring Effect

1520. April 2011


How to apply that in marketing?

1620. April 2011

• Why would high sellers of televisions via banner adverts appear on a holiday website.


How to apply that in marketing?

1720. April 2011

• “There’s one really simple explanation If you’re a behavioral economist. If you spend 40 minutes looking at $3,000 holidays online, a $900 television actually seems ok in comparison.”

• So where should you try to sell a Rolls Royce?

20. April 2011 WIB_Dokumentname.pptx 18



Would that work? www.fitnesschore.com

19

Flatrate Bias


• Why does it normally work?• 5 factors

– Assurance effect (no stress about eventual changes)

– Taximeter effect ( we do not always have to look at the growing cost)

– Convenicene effect (we like it easy and simple)

– Selfreference effect (we normally overestimate ourselves)

– Marmalade effect (more is often less read:

– http://hbr.org/2006/06/more-isnt-always-better/ar/1)

http://hbr.org/2006/06/more-isnt-always-better/ar/1

http://hbr.org/2006/06/more-isnt-always-better/ar/1



Marmalade effect

www..wib.ch by lukas ritzel / management thinking mistakes 2210.04.2023

Crazy Business Stories 1-4 if time

• A collection of business puzzles as a interactive Q&A game

• Ask questions, which i can answer by YES and NO only and try to find out the real story behind it.


Crazy Business Story 1

• Marketing Manager Ritzel white-washed his figures to look super-positive. This was the beginning of a success story.


Result

2420. April 2011

• Announced potential, whether realistic or unrealistic, attracts attention. The interest of management was guaranteed and Ritzel received needed resources and appropriate support. This in turn promoted the activities and the commitment of those involved - in the sense of a self-fulfilling prophecy.

• Reverse Fortune Telling thinking mistake



• The new car (Mitsubishi) did just not lift up to it’s expectations


Result

2620. April 2011

• The name of this Mitsubish was ‘Pajero’ which sounded kind of good. But problematic was that in Spanish it did not sound nice at all. Therefore all the Spanish speaking markets where not buying that car.

• Read more at http://goo.gl/qCDZl4

• Not yet in the management thinking app but will be added to a 2014 launch version > cultural management dilemmas

http://goo.gl/qCDZl4

http://goo.gl/qCDZl4



• Ritzel was very pleased with his management internship. At the end of it, he was asked to make a presentation to the executive commity. He prepared well but after 5 minutes within the presentation, the whole commity left without saying one single word!


Result

2820. April 2011

• As used within a Swiss business environment Ritzel was talking about the potentials and dangers and tried to raise some critical points as well. But being in Thailand, the executive committee expected only praise and thanks. To not further loose face, they decided to leave

• Not yet in the management thinking app but will be added to a 2014 launch version > cultural management dilemmas


One last Crazy Business Story

• An innovation for vaccuum cleaners lead one company almost to bankruptcy


Result

3020. April 2011

• Simply too quiet for the US (Hoover-ized) market > perceived not strong enough

Wishing you merry xmas and a happy new year and eventually avoid some of the dilemmas you will be facing almost daily

Thank You to all of you and a thanks to M. Esposito

www.wib.chContact: [email protected]

mailto:[email protected]

3210.04.2023

Screenshots from the webcast

10.04.2023 33www..wib.ch by lukas ritzel / management thinking mistakes