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Heuristics Case on Volvo

20 Oct 2017Business Essays

The case which involves a decision towards my boss buying out cars for the entire staff, apart from the objection of the company supervisor, the cars happen to be a Volvo. The decision-making criteria involved in the case used mainly heuristics principles that are detrimental in the processing and the implementation of the outcome of the car purchase made.

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For instance, several heuristics principles are used by the boss or the supervisor that has its functions, inclusive of both advantages and disadvantages. Likewise, any influence directed to the boss of the company may also be affected by certain heuristics that are to be used of which is the objective of this paper. With the boss being convinced enough through the information to be supplied, the objection of the supervisor may be considered as irrelevant.

The type of heuristics that can primarily explain the somewhat biased decision made by the supervisor of the electrical fixtures supply company on buying out cars for employees can be easily put as a decision of preference. A lot of factors contribute to this decision, one of which maybe that the supervisor already owns a Volvo and is not confident of the brand's performance relative to its purpose in the business (Plous, 1993). Therefore, he wants to avoid the repetition with the whole company in mind. The concept of choice-supportive bias supports this decision as an individual is more likely to associate positive aspects to the choice they make, and likewise associate negative ones to the choice they have rejected.

Furthermore, the objection made by the supervisor of the company may also be explained by the exposure of the supervisor to certain experiences such as accidents.

Likewise, it could also be furthered by his lack of access to several advertisements or positive remarks that could have changed his perception towards Volvo. This is commonly referred to as the exposure effect which most marketers usually employ in order to win clients. This may also explain why the boss is geared towards buying Volvos for his employees because of the advertisements that he may have seen in several advertisements or through recommendations of his colleagues even if he personally doesn't own a car of the same brand yet.

As an employee, the welfare of the company also comes at the top priority so observing as well as looking closely into the choice of buying Volvos ought to be further researched. The decision of the boss overall is affected by the Availability Heuristic or through the information that he has access with (Gilovich, 2007). This could then be influenced by employing the same type of heuristics mainly by making the available or accessible information to the supervisor as well as with the boss of the company broader than what they know. At that situation, provided that the heuristic of choice-supportive bias is suspended, the company as a whole could come up with a better alternative other than Volvo if there is one.

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As a profit driven company, things such as purpose, allocated budget, and safety are the most common things should be considered in buying out an automobile. Volvo has a reputation for safety and quality of craftsmanship in its automobiles. Longevity of the vehicle is also similar with that of the other expensive vehicles. The primary difference is that a Volvo costs cheaper relative to a Ford or a Mercedes. The company practically does not have to have a super luxury vehicle for operations usage. Provided that a Volvo is safe enough as well as practical for the company to acquire, the qualms of the supervisor will definitely be resolved.


  • About Volvo Cars [Electronic Version]. Retrieved June 24, 2007 from http://www.volvocars.com/corporation/default.htm .
  • Gilovich, N. E. A. T. (2007). The Anchoring-and-Adjustment Heuristic. [Electronic Version]. Psychol Sci. Retrieved June 24, 2007 from http://lib.bioinfo.pl/pmid:16623688
  • Plous, S. (1993). The psychology of judgment & decision making. New York, McGraw Hill
  • AutoWeb. (2007). Comparison. Retrieved June 24, 2007.
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