Ryan, the marketing manager at a company, decides to invest more money to promote a technology that has earlier failed at the market due to its technical incompetency. Ryan is unwilling to accept that the product lacks the competitive edge to survive in the market. He is not ready to admit his mistakes and applies more resources to pursue a course of action that is not working. This type of decision-making trap is known as _____.
A) confirmation error
B) escalating commitment
C) framing error
D) strategic opportunism
E) lack-of-participation error

Question

Quizplus · Accepted Answer

Escalating commitment is a decision-making trap where a person or a group of people continue to invest more resources into a failing course of action due to their unwillingness to admit their mistakes or accept failure. In this case, Ryan is investing more money to promote a technology that has already failed, despite its technical incompetency. He is not ready to accept that the product lacks competitive edge and is continuing to pursue a failing course of action. Thus, the best answer is B, escalating commitment.

Ryan, the Marketing Manager at a Company, Decides to Invest