Question

Steve Hamilton, of Hamilton Supply Corporation, wanted to buy a hydraulic lift that was durable and of good quality, yet priced low. The model he chose was neither of the highest quality nor did it cost the least, but it had the best combination of attributes. This method of making a choice is known as:

a) Compensatory Model
b) Satisficing
c) Maximizing
d) Rational Decision Making

Answer 1

Steve Hamilton employed the satisficing method of decision-making by choosing a hydraulic lift that met his criteria for quality and price, providing him with an acceptable level of utility rather than an optimal one.

Step-by-step explanation:

Steve Hamilton's approach, where he selected a hydraulic lift that wasn't the highest quality nor the lowest priced but offered the best combination of attributes, demonstrates a decision-making process known as satisficing. This concept occurs when an individual seeks a satisfactory solution rather than the optimal one. In contrast to seeking the best possible solution, which is indicative of rational decision making, satisficing involves selecting an option that meets a certain level of acceptability or sufficiency.

The choice reflects an incremental and practical approach to decision-making, simulating the real-world scenarios where trade-offs are common. By choosing a product that offers the greatest utility, a measure of satisfaction or happiness, Steve Hamilton aims at maximizing his overall satisfaction with the purchase decision, considering the constraints he faces, such as budget limits and available options.