Hy Diaries Inc

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Case study 3.1: HY DAIRIES, INC. 1. Apply your knowledge of stereotyping and social identity theory to explain what went wrong here. Stereotyping is the process of assigning traits to people on the basis of their membership in a social category. Stereotypes generally have some inaccuracies, some overestimation or underestimation of real differences, and some degree of accuracy. One problem with stereotyping is that stereotypes under certain conditions, such as the degree to which they interact with people in that group. The greatest concern is that stereotyping lays the foundation for prejudice that is unfounded negative emotions toward people belonging to a particular stereotyped group. Stereotyping could aslo be…show more content…
The halo effect is most likely to occur when concrete information about the perceived target is missing or we are not sufficiently motivated to search for it. Instead, we use our general empression of the person to fill on the missing information. Not only that, the primacy effect also occur in this case study that is our tendency to quickly form an opinion of people on the basis of the first information we receive about them. This rapid perceptual organization and intrepretation occurs because we need to make sense of the world around us. The problem is that first impressions is particularly negative first impressions are difficult to change. After categorizing someone, we tend to select subsequent information that supports our first impression and screen out information that opposes that impression. Next, the recency effect that occurs when the most recent information dominates our perceptions. This perceptual bias is most common when people especially those with limited experience are making an evaluation involving complex information. For instance, auditors must digest large volumes of information in their judgements about financial documents and the most recent information received prior to the decision tends to get weighted more heavily than information received at the beginning of the audit.

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