Kendra is a retail manager at Shonder Corp. She needs to respond to customer complaints regarding a product and fix the problem. To do that, she has to decide on either scrapping the product or replacing it with a different brand. Based on the success and favorable online reviews of an alternate brand, she decides to switch to a different brand. In the context of the normative decision theory, which of the following decision styles has Kendra adopted in this scenario?

A - The AI decision style

B - The CI decision style

C - The AII decision style

D - The CII decision style

The kind of decision style that Kendra adopted is the;

A - The AI decision style

Explanation:

Decision theory is a multi-disciplinary approach that can be used to arrive at decisions where the most beneficial option is considered in that context. Since decision theory is multi-disciplinary, it involves the utilization in many fields such as; psychology, philosophy, mathematics and statistics to evaluate the decision-making process. Decision-making is broad with various branches that deal with specific aspects, the three main branches of decision theory are; descriptive decision theory, prescriptive decision theory and normative decision theory. We will consider normative decision theory.

Normative decision theory utilizes a set of value to provide guidance to decision making. In this context, there are different styles of decision making that can be used, an example is the AI decision style. The AI decision style is a type of decision making that usually involves the leader acting alone. He/she makes a decision alone using the information available to them at that moment. This type of style is majorly beneficial in areas where the information about the decision is confidential in nature.