Open AccessUnderstanding the Perspective of Behavioral Economics’ Planning Fallacy in Improving Business Strategy for Kopi Bon
Author(s) -
Fadhilla Sandra Adjie,
Alvanov Zpalanzani Mansoor,
Sony Rustiadi,
Ira Fachira
Publication year - 2021
Publication title -
european journal of business and management research
Language(s) - English
Resource type - Journals
ISSN - 2507-1076
DOI - 10.24018/ejbmr.2021.6.3.873
Subject(s) - fallacy , perspective (graphical) , quality (philosophy) , marketing , business , process (computing) , value (mathematics) , behavioral economics , economics , microeconomics , computer science , philosophy , epistemology , artificial intelligence , machine learning , operating system
In seeking differentiation value, Small Medium Enterprises tend to have limitations which hinder their way in developing the business strategy. As an SME that has established its two-year business operation—Kopi Bon is being analyzed and investigated from the perspective of behavioral economics’ Planning Fallacy—as it shows that the planning process is filled with distortion made from judgments as a result of behavioral biases. The study revealed how cognitive biases that involve planning fallacy as a supporting theory influences the company’s decision-making process—where later could be affected to the decision making in terms of operational activities which comprises of the quality of products and services, to the company’s branding. Also, the study reveals how understanding planning fallacy would make improvement towards business strategy to survive within the pandemic of COVID-19.