This week's discussion will focus on integrating rational decision$-$making with the behavioral aspects of decision$-$making. In this week$$s readings $($Hammond $(1998)$ and Kahneman $(2011)$ offer cautionary perspectives on the role of behavioral heuristics in the decision process. In contrast, Kruse $(2024)$ argues that there is value in behavioral heuristics in the decision process under certain circumstances. Review the case below and discuss the questions below.

Lived Experience Inc. sells lifestyle brands for upper middle$-$class millennials focusing on kitchen and other house furnishings. Most of its brands have short product life. Therefore, the company is always on the lookout for new product ideas that can $$catch on$$ and drive sales growth over the next three to four quarters. The Executive Product Manager is eager to develop new brands that could generate longer product life cycles and give new strategic direction to the business.

The Executive Product Manager recently read an article on the dangers of microplastics in common household products and was convinced that this niche was the $$next big thing$$ for the company. He$/$she asked the product team to conduct detailed market research. Simultaneously, he$/$she funded R&D on new lighter materials free of microplastics that could serve as the material for a wide range of home products $($storage containers, soap dispensers, $...).$ When the product research team concluded their analysis, they convinced the product department that the market for lighter lifestyle products free of microplastics was indeed the $$next big thing$.$

After a year of hard work and investment in research, design, and marketing, new brands were introduced under the brand name, $$Liberty$.$ Despite strong marketing of Liberty products demand remained weak. After a year since its introduction, the company disbanded its Liberty brand.

$1.$ Share your insights on the decision$-$making process described in the case.

$2.$ Do you perceive decision heuristics $/$behavioral biases in the company's decision to launch the Liberty brand? Identify the nature of the biases and provide arguments supporting your perspectives.

$3.$ Do you perceive decision heuristics $/$behavioral biases in the company's decision to abandon the Liberty brand? Identify the nature of the biases and provide arguments supporting your perspectives.

$4.$ Discuss Kruse $(2024)$ article in its limited support of decision heuristics. Do those circumstances apply to Lived Experience?