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Anticipating the Future: Managing Risk and Real Options

  • David W. StewartEmail author
Chapter
Part of the Palgrave Studies in Marketing, Organizations and Society book series (PSMOS)

Abstract

The future is not certain. There are risks and opportunities that may impact the outcomes of the best-laid plans. This chapter describes how the models, tools, and techniques developed for the case of certainty can be adapted to address more realistic situations in which marketing planning occurs under uncertainty. The chapter presents and evaluates techniques that firms use to incorporate risk into their budgeting processes and financial planning with a specific emphasis on how risk is evaluated in a financial context. The chapter also addresses the means by which firms may leverage existing marketing assets or real options.

References

  1. Booz, Allen and Hamilton. (1982). New Product Management for the 1980s. Booz, Allen and Hamilton Inc.: New York.Google Scholar
  2. Montibeller, G., & von Winterfeldt, D. (2015). Cognitive and Motivational Biases in Decision and Risk Analysis. Risk Analysis, 35(7), 1230–1251.CrossRefGoogle Scholar
  3. Musashi, K. (2016). The 25 Cognitive Biases: Understanding Human Psychology, Decision Making & How to Not Fall Victim to Them. CreateSpace Independent Publishing Platform/ Virtual Publisher.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.College of Business AdministrationLoyola Marymount UniversityLos AngelesUSA

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