1. Apply your knowledge of stereotyping and social identity theory to explain what went wrong here.
2. What other perceptual error is apparent in this case study?
3. What can organizations do to minimize misperceptions in these types of situations?

Syd Gilman read the latest sales figures with a great deal of satisfaction. The vice president of marketing at Hy Dairies, Inc., a large mid western milk products manufacturer, was pleased to see that the marketing campaign to improve sagging sales of Hy’s gourmet ice-cream brand was working. Sales volume and market share of the product had increased significantly over the past two quarters compared with the previous year.