Week 6 Assignment

Week 6 Assignment - become its own holiday. The popularity...

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Mike Alborn 1. I feel that herd behavior increases with the size of the herd because everyone wants to be “trendy” and follow what is popular to do. They see one person purchasing something or doing some activity and they may consider doing it themselves but if they see the whole town doing something they may feel left out if they do not follow. For example, the whole iPad/Apple obsession. Currently it is the “trendy” thing to own and people see all their friends have one and they may feel compelled to get their own so they do not get left behind. 2. Pack behavior can have several different benefits. One benefit could be that it helps to fulfill the basic human desire of belonging. Another benefit is pack behavior could result in benefits directly to the people in the “pack”. An example of this could be Black Friday. It started out as a small shopping day and over the past several years it has almost
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Unformatted text preview: become its own holiday. The popularity of it grew with more and more people waking up early to shop and this resulted in retailers giving out more discounts to attract more people and now people run through the store almost in a giant pack. 3. What he states does make sense because many people begin to see the mistakes being made so they stop buying and selling and shortly after people they know stop also. As word breaks around and people stop buying and selling, the housing market then crashes. It is just a reverse situation of the herd behavior that started the whole situation. 4. Organizations could combat the problems with herd behavior by encouraging people to be original and separate from the pack. They can create products that encourage this by trying for more than one popular idea. This will hopefully separate the group so that it can lower the effects of the herd behavior....
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