When managers decide not to launch a product in a specific global market because it did not perform well in a similar market, they are using the representativeness heuristic.

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The representativeness heuristic is a cognitive shortcut in which people make judgments based on how similar something is to a typical case or stereotype. In this scenario, the managers are using the previous performance in a similar market as a representation for the potential performance in a new market.

When Managers Decide Not to Launch a Product in a Specific