Areas 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.

Areas of discounting

• There are three areas in

which people can discount:

• Self.

• Others.

• Situation.

Areas of discounting

• In the example, When I was sitting in the restaurant dropping because the waiter wasn’t bringing my glass of water, I was discounting myself.

• I was ignoring my own ability to take action to get what I wanted.

Areas of discounting

• My friend who got angry and started criticizing the waiter, was discounting not himself but the other person.

• In judging the waiter incompetent, hew was blanking out any aspects of the waiter’s actions that might have contradicted his criticism.

Areas of discounting

• Suppose that after drooping for a while, I did turned to my friend and said: “ Well, there we are. It really isn’t fair that these other people are getting served and I am not. But then, this world is an unfair place, isn’t it?”

• Here, I did have been discounting the situation.

Thank you

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