Marketing decisions to get rid of the fetters of sunk costs.doc

 PAGE \* MERGEFORMAT 4 Marketing decisions to get rid of the fetters of sunk costs What is a “sunk cost”, that is, those that have taken place, the expenditure can not be recycled, such as time, money, energy and so on. Sunk means that if you put in before the formal completion of the transaction cost, once the transaction fails, it will be losing out. But if too much love of sunk costs, will continue the original error, resulting in greater losses. Look at a life story, we can better understand. My mother spent 2,000 yuan to buy a keyboard Ale, Ale nature can be a good move, little interest in music, organ gradually down the dust. Soon Ale mother’s colleagues said that there was a professional teacher of Music piano tutor can give Ale. this time, do you think of what my mother Ale decision? Ale mother decided to request the tutor on the grounds that: “the keyboard to buy , of course you must learn, ask a teacher to teach, or the piano to waste! “So, to pay 500 yuan per month and insisted for six months, eventually had to abandon, in order not to waste the flower of 2,000 yuan, Asia Li, my mother continued waste of 3,000 of the tutoring fees. From a rational perspective, sunk costs should not affect our decision-making, however, we often want to restore or avoid the sunk costs and make a lot of irrational behavior, and thus unable to stop into the quagmire, and deeper and deeper. Currently encountered in the work of management decision making, everyone associated with this. Sales representative responsible for sales of regional adjustment problems: Some sales representatives have been responsible for sales growth in the terminal area is not ideal, did not meet our expectations of potential sales, but from a practical sales point of view, there is that good, and that the sales representative responsible for the region is also a long time, and regional customers are very familiar with, so they can not be determined for personnel adjustments, sales promotio