Decision-making Biases (Scenario)
Frank is president of Mega Manufacturing, a Canadian company that makes automobile parts. Sales and profits are down sharply this quarter, and Frank needs to analyze the series of events that have led to the poor performance. Frank begins by reviewing his recent interactions with Mike, the vice-president of sales.
-Unfortunately,Frank learned yesterday that the Japanese car maker decided to award the contract to a competing auto parts company.When Frank asked Mike why they lost the sale,Mike blamed it on the high Canadian dollar and the rise in cheap offshore auto parts suppliers.Mike is demonstrating which of the following?
A)confirmation bias
B)self-serving bias
C)overconfidence bias
D)framing bias

Question

Quizplus · Accepted Answer

Mike is demonstrating the self-serving bias by blaming external factors (high Canadian dollar and rise in cheap offshore auto parts suppliers) instead of accepting responsibility for the poor sales performance. This bias helps individuals to protect their ego and self-esteem by avoiding any negative feedback about their performance or decision-making.

Decision-Making Biases (Scenario) Frank Is President of Mega Manufacturing, a Canadian Company That