The rational choice paradigm predicts that decision makers will select the alternative with the highest subjective expected utility. Observations from organizational behavior research indicate that a variety of factors, such as stakeholder framing, mental models, decisive leadership, solution-focused problems, and perceptual defense limit decision makers' abilities to be completely rational. A bounded rationality view of decision making, in which people compare alternatives to an implicit favorite and satisfice rather than maximize, more accurately portrays how decisions are actually made.

Match each issue to its corresponding step of the rational choice decision-making model.

-The team arrives at four potential solutions: redesigning the product, bundling the product with a bonus item, dropping the price, and increasing marketing to boost brand identity.

-The team takes action to implement the chosen solution. It first bundles the product with a bonus item in a limited test market.

-Some employees think the problem is increased competition; others think it is decreased customer demand. After a careful market analysis, the problem is identified as a substitute product that costs less.

-An analysis of test market sales indicate bundling the product with a bonus item increased sales to the previous levels. Given the cost of the bonus item, however, net profits are slightly lower.

-This is the first time the company has faced declining sales, so deciding on a solution is new for everyone. You decide to keep the full management team on board until a decision is reached and implemented.

-The best solution appears to be bundling the product with a bonus item because it keeps the price up, but also increases customers perceptions of value.

Match each of the options above to the items below.

1. Identify the problem or opportunity

2. Choose the best decision process

3. Discover or develop possible choices

4. Select the choice with the highest value

5. Implement the selected choice

6. Evaluate the selected choice