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Business Presentation

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To extend and support the understanding of decision making when dealing with those traps, we also need to understand possible factors that play roles in decision making process.
There could be four aspects backed up by 4 academic materials that might influence decision making. The first one is the mode of thinking. According to Hastie et al (2001), it suggests that there are two modes of thinking, System 1 thinking (intuitive) and System 2 thinking (analytical). It also argued that any kind of serious, complex thinking employs both analytical and intuitive thought.
It explains System 1 thinking as relatively unconscious, relatively independent of language and generates a feeling of certitude. It is related to intuition and allows rapid, automatic decision-making. In contrast, System 2 thinking is controllable, conscious, rule-based, and is less characterised by feelings of certitude. It is commonly called analytic thinking.
While System 2 thinking covers the higher level cognitive, attention-demanding, information processing activities that characterise much decision-making, it also notes that decision makers should aware that information processing under System 1 thinking may have far greater impact on judgements and choices.

This brings us to the aspect of heuristic, Gigerenzer (2004) suggest that there are two common models of heuristics, recognition heuristics and social heuristics. It explains that Recognition heuristic builds on the human capacity for recognition, for example of faces, voices, names. It shows that when trying to judge between options, where one option is recognised and another is not, people will infer that the recognised option has the higher value. The social heuristic uses human capacities for social learning and imitation. In brief, this heuristic is based on choosing what the majority of one's peers are choosing (for example,…...

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