2. Prepared By
Manu Melwin Joy
Research Scholar
School of Management Studies
CUSAT, Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
Kindly restrict the use of slides for personal purpose.
Please seek permission to reproduce the same in public
forms and presentations.
3. 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.
4. 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.
5. Areas of discounting
• There are three areas in
which people can discount:
• Self.
• Others.
• Situation.
6. 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.
7. 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.
8. 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.