Rational of Assumption in a Market Plan

Market Plan
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Market Plan
Rational of assumption
Most of the models studied during the ancient economic courses began with a hypothesis about the rationality of the parties involved, for example, analytical companies, rational consumers, and rational employees. In most cases, when people hear about something being logical, they interpret it as making reasonable decisions (Beggs, 2018). However, in a business or economic context, the term rationality has a specific meaning. At senior levels, people think of rational consumers as those individuals who like maximizing their long term happiness or utility. On the other hand, people think of analytical companies as ones that believe in maximizing their long term revenue (Beggs, 2018). Nowadays, there is a lot of information behind the rationality assumption as compared to ancient times.
Rational individuals love to process all their information objectively, thoroughly, and in a cost-effective manner. The Gahanna sanctuary has been making efforts to improve on its services by renovating the building to meet the modern models. The assumption being that by renovating the building; the consumers will be able to maximize their long-term happiness. Moreover, most people will be choosing the sanctuary as the venue for their wedding. However, the task of renovating the sanctuary has not been easy since raising funds has been challenging as it is a nonprofit organization. Due to this problem, most of the customers have not been able to maximize their long-term utility (Beggs, 2018).
Additionally, rational individuals tend to plan for long term utility, which becomes more complicated since things keep on changing, and people adapt to new models and services. This problem has been affecting the Gahanna sanctuary since they cannot be able to predict what changes will be there in the market. This has denied them the chance to gain a competitive advantage over their competitors. The fact that the assumption of rationality requires clients to process all the needed data at a low cost so that they can maximize their utility; it makes it more difficult for the process to come to r...