Managers for an organic grocery chain were deciding whether to open a new store in a neighborhood currently unserved by any competitors. One manager felt that the lack of competitive presence was an opportunity to capture the newest customers. Another manager viewed the lack of a competitor in the area as an indicator that the local community may not be interested in organic products. This difference in perspective illustrates the concept of
A)ambiguity.
B)satisficing.
C)confirmation bias.
D)groupthink.
E)illusion of control.

Question

Quizplus · Accepted Answer

This situation illustrates ambiguity, as the same situation (lack of competitors) is interpreted differently by the managers, leading to different conclusions about the potential success of a new store.

Managers for an Organic Grocery Chain Were Deciding Whether to Open