Types of discounting

Prepared By Manu Melwin JoyResearch Scholar

School of Management StudiesCUSAT, Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

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Discount Matrix

• Discounting results in

unresolved problems.

• Thus, if we can devise a

systematic way of identifying

the nature and intensity of

discounting, we will have a

powerful tool for problem

solving.

• Such a tool is called discount

matrix.

Discount Matrix

• Discount matrix was developed

by Ken Mellor and Eric Sigmund.

• The discount matrix starts from

the idea that we classify

discounts according to three

different criteria.

• Area.

• Type.

• Level.

Types of discounting

• The three types of

discounting are of:

• Stimuli.

• Problems.

• Options.

Discounting - Stimulus

• To discount a stimulus is

to blank out perception

that something is

happening at all.

• As I sat in the restaurant, I

might simply not have

allowed myself to feel

that I was thirsty.

Discounting - Stimulus

• I would have been discounting the stimulus of my own thirst.

• Maybe my friend, in calling the waiter incompetent, had not seen the way in which the waiter had actually succeeded in serving many other customers, even though the evidence was right there in front of him.

Discounting - Problem

• The person who discounts a problem realizes that something is happening, but ignores the fact that whatever is happening poses a problem.

• Feeling thirsty there in the restaurant, I might have said to my friend, “ I feel very thirsty right now, but, oh well, it doesn’t matter.”

Discounting - Options

• When discounting options, the person is aware that something is happening and that it constitutes a problem.

• But she blanks out the possibility that anything can be done about the problem.

• That is where I was discounting in the original version of the restaurant scene.

Discounting - Options

• As I sat drooping, I knew that I felt thirsty.

• I was aware that my thirst was a problem to me.

• But I was unawarely ignoring the many options I had, other than just sitting and hoping the waiter to respond.

Thank you

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