Barbara Albers is the manager of a small regional airline whose primary customers are people travelling to a major city 150 miles away. A few months ago, she introduced a 'buy one ticket, get one free' promotion to increase air traffic to the city. The promotion was not significantly increasing traffic, primarily because the typical customers were business people who would have flown anyway and who were now bringing along an assistant or other business associate. The promotion was costing the company a lot of money, yet Barbara continued to offer it. Barbara's decision to continue the promotion despite negative feedback is called a(n):

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Barbara's decision to continue the promotion despite it costing the company money and not significantly increasing traffic is an example of escalating commitment, where individuals or organizations continue to invest in a decision despite evidence of its ineffectiveness, often due to a desire to not admit failure or to recoup sunk costs.

Barbara Albers Is the Manager of a Small Regional Airline