Jake, the CEO of WinWest Inc., launches a new product. Despite the product's persistent failure, he is unwilling to withdraw it from the market because he believes that the product will be profitable in the long term. This scenario is an example of _____.

Question

Quizplus · Accepted Answer

This scenario exemplifies escalation of commitment, where Jake continues to invest in the failing product due to his belief in its future success, despite evidence to the contrary. This reflects a commitment to a course of action even when it is not yielding the desired outcomes.