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    Framing During Decision Making

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    You are observing a meeting between Milhouse (one of your co-workers) and a salesman who is trying to sell an additional part to a machine that your company recently purchased. The salesman is well into his routine, and has already gotten your co-worker to admit that a quality product is of utmost importance to the future of the company. The salesman approaches the topic of price with great skill. "Although this investment may seem substantial at first glance," he admits, "with our extended payment plan, this part will cost you less than 40 cents a day. Why, that's less than a can of soda! Wouldn't you say the future success of your organization is worth more than a daily can of soda?" Having never thought of it in just that way, Milhouse decides to purchase the part. (Working Psychology, 2003).

    In order to prepare for future situations in which you have to make decisions such as these you go back to your office to evaluate the decision and in particular to do the following:

    Identify how Milhouse "framed" his decision.
    Explain how an alternative "frame" could have resulted in a different decision outcome. What factors would led to an alternative framework?
    What are the implications of "framing" on our judgments and on our attempts to influence others? Are there moral considerations? Why or why not?
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    Solution Preview

    BrainMass rules forbid completion of assignments, so this is an outline.

    1. He was influenced by the need for the addition to the newly purchased machine.
    2. He wanted that the outcome would be useful for using the new machine;
    3. He felt that 40 cents a day for the addition was low enough to go in for addition;
    4. That he may lose an opportunity for ...

    Solution Summary

    This solution talks about the decision making by Milhouse. It then discusses the effect of framing the decision.