Setting the sales budget: An exploratory study

This article explores how the sales budget is set in a business organization. Findings from a longitudinal participant observation study revealed that the sales budget is considered of great importance to the organization as sales estimates serve as premises for planning of production and supply and new product developments. It was observed that the sales budget was based on a narrow, inner-directed perspective, almost looking away from important environmental driving forces such as competitors and customers. The findings also showed that individuals involved in the sales budgeting process behaved opportunistically, influencing the budgetary process and outcomes. Theoretical and normative implications are highlighted.     

Functional measurement approach to self-estimation in multiattribute evaluation

Multiattribute analysis depends on measurement of values and weights. Unless these measures reflect the decision maker's true values and weights, the multiattribute formula may put a less-preferred alternative in first place. To avoid such disordinality requires stringent measurement conditions: First, the values and weights must be on linear (equal interval) or ratio (known zero) scales. Second, these scales must satisfy a condition of common unit across disparate attribute dimensions. Most methods of range adjustment beg both of these measurement questions. Functional measurement theory can solve both problems and so can be useful in multiattribute analysis. Past work has established the operation of a general cognitive algebra as an empirical reality. The averaging model, in particular, makes possible the definition and estimation of weights and values as distinct psychological parameters. It can also solve the problem of common unit. Cognitive algebra thus provides a grounded theoretical foundation on which to develop self-estimation methodology, in which decision makers provide direct estimates of their values and weights. The logic is straightforward. Functional measurement can analyze global judgments to obtain validated psychological scales. These scales may then be used as validational criteria for the self-estimates. Procedures to eliminate biases in the self-estimates can thus be tested and refined in well-learned multiattribute tasks, such as judgments of meals, in which global judgments are trustworthy. Once developed, such self-estimation procedures may be used with some confidence for general multiattribute analysis. A number of studies from 20-odd years of work on the theory of information integration are summarized to show good, although not unmixed promise for self-estimation.     

An availability bias in professional judgment

When branches of a fault tree are pruned, subjects do not fully transfer the probability of those branches to the ‘all other’ category. This underestimation of the catch-all probability has been interpreted as an ‘out of sight, out of mind’ form of the availability bias. The present work replicates this underestimation bias with professional managers. It then demonstrates the effectiveness of a corrective tactic, extending the tree by generating additional causes, and also reveals that more easily retrieved short-term causes dominate the generation process. These results do not differ across managers' culture, education or experience. After evaluating such alternative explanations as category redefinition, we conclude that availability is a major cause, though possibly not the sole cause, of the underestimation bias.     

Effect of the interintromission interval on lordotic response and attack latency in golden hamsters (Mesocricetus auratus)

After 12-15 ejaculatory series, each consisting of several short intromissions (2- to 3-s vaginal penetration) and an ejaculation, male golden hamsters adopt an altered copulatory pattern consisting of long intromissions (5- to 25-s penetration with intravaginal thrusting). Receptivity declines and the tendency for the female to attack the male increases at about the time of this shift in copulatory pattern. Because the mean interintromission interval (III) between short intromissions is about 8 s compared to 100 s between long intromissions, it is possible that females detect this difference and adjust their mating accordingly. When the III between short intromissions from a rested male was experimentally increased to 100 s by use of a halter and lead device, the duration of lordosis was significantly less than that displayed by females paired with control males (8-s III) and virtually the same as that displayed by females paired with males that produced only long intromissions. This suggests that the female uses the temporal patterning of intravaginal stimulation as one criterion for terminating mating with a particular male.     

Rodents' (Rattus, Mesocricetus, and Meriones) use of learned caloric information in diet selection

When given a choice between two mashes of equal caloric density but differing flavors, rats (Rattus norvegicus) show a robust preference for the flavor previously associated with a higher calorie food. This finding suggests that rats may identify food quality by sensory cues such as taste. Our initial attempt to show this effect in the golden Syrian hamster (Mesocricetus auratus) failed, apparently because of this species's tendency to store both high- and low-calorie mashes in their cheek pouches during conditioning trials. Initially we attempted to circumvent this seeming morphological constraint on learning by presenting low- and high-calorie mashes on alternate days. This procedure too failed to produce evidence of flavor-caloric learning, although this procedure produced robust learning in another rodent, the Mongolian gerbil (Meriones unguiculatus). Another method of preventing cheek pouching--concurrently presenting low- and high-calorie liquid diets--was more successful; then, hamsters showed clear evidence of flavor-caloric learning. Thus, although flavor-caloric learning is demonstrable in species of rodent besides the rat, the circumstances under which it occurs vary.     

Perceptual organization of acoustic stimuli by budgerigars (Melopsittacus undulatus): III. Contact calls

We trained budgerigars by operant conditioning to discriminate among a set of contact calls in a same-different task and analyzed response latencies from this task by using multidimensional-scaling (MDS) and cluster-analysis procedures. Humans listened to the same calls and indicated the similarity between pairs of calls by a direct rating procedure. An MDS program (sindscal) was used to arrange these complex acoustic stimuli in multidimensional space reflecting perceptual organization. Multiple regression techniques were used to identify the acoustic characteristics of contact calls that were correlated with the perceptual dimensions obtained from MDS. A number of spectral characteristics (e.g., peak frequency, rate of frequency modulation, and concentration of spectral energy) emerged as important for both budgerigars and humans, but the relative salience of these cues differed for the two species. Additional tests with two groups of budgerigars--cagemates and noncagemates--showed that experience with calls can change the salience of various acoustic characteristics used for perceptual organization and individual recognition.     

Coping with victimization: The impact of rape on female survivors,male significant others,and parents

This paper reports on an unusual study of survivors of rape and the effects on the victim, her significant male other person, and her parents. All survivors were victims of the same rapist and were interviewed from 21 months to ten years after the event. The study indicates that the long-term effects of rape may be more significant than previous researchers and practitioners thought was the case. Recommendations are given for more effective help for survivors and those close to them.This study was funded by the Ohio Department of Mental Health, Office of Program Evaluation and Research, Columbus, Ohio, 1985.     

Confidence in judgments based on incomplete information: An investigation using both hypothetical and real gambles

This study assessed how confidence in judgments is affected by the need to make inferences about missing information. Subjects indicated their likelihood of taking each of a series of gambles based on both probability and payoff information or only one of these sources of information. They also rated their confidence in each likelihood judgment. Subjects in the Explicit Inference condition were asked to explicitly estimate the values of missing information before making their responses while subjects in the Implicit Inference condition were not. The manner in which probability information was framed was also manipulated. Experiment 1 employed hypothetical gambles and Experiment 2 employed gambles with real money. Expressed likelihood of taking gambles was higher when probability was phrased in terms of '% chance of winning' rather than '% chance of losing', but this difference was somewhat less with real gambles than with hypothetical gambles. Confidence ratings in each experiment were actually higher on incomplete information trials than on complete information trials in the Explicit Inference condition. Results were related to the general issue of confidence in judgments.     

Cance and luck are not the same

In the mind of many people chance and luck act as real but different causes of events. Even in strictly defined situations as casino gambling, people may perceive influences of luck that help to overcome the negative expectancy defined by the rules of chance. Interviews with gamblers in casinos confirmed this idea. In two experiments it was established that the distinction between chance and luck are also made by ordinary subjects in everyday situations. The results revealed that chance is perceived to operate when an event is surprising, an unexpected coincidence. Luck is perceived when an event implies the escape from negative consequences, or the achievement of something that is important and difficult. The distinction between chance and luck can explain why people are trapped by the illusion of control, even when it is clear that they have no influence on the physical causation determining the outcomes of events. They cannot change the outcome of the roulette wheel, but they can employ their luck, which helps them to place their bets on the winning number.