What is it?
Organizations eschew the “optimal” decision for an “acceptable” decision. (Think “satisfying + sacrificing.”)
How does it relate to sales?
Just because your product is better or will provide financially favorable outcome for your prospect, it may not be selected. Get used to it. But you can affect this process. Read this recent post -“Rationality & Decision-Making.”
Why is it new, but old?
Because Herbert Simon coined the concept in his 1947 book – “Administrative Behavior.”
And here are a few related posts detailing the role of Economics and Psychology in the sales process: