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MANAGING PROJECTS

Projects represent nonroutine business activities that often have long-term strategic ramifications for a firm. In this chapter, we examined how projects differ from routine business activities and discussed the major phases of projects. We noted how environmental changes have resulted in increased attention being paid to projects and project management over the past decade. In the second half of the chapter, we introduced some basic tools that businesses can use when planning for and controlling projects. Both Gantt charts and network diagrams give managers a visual picture of how a project is going. Network diagrams have the added advantage of showing the precedence between activities, as well as the critical path(s). We wrapped up the chapter by showing how these concepts are embedded in inexpensive yet powerful software packages such as Microsoft Project. If you want to learn more about project management, we encourage you to take a look at the Web site for the Proj...

Buying, Using, and Disposing

Many factors at the time of purchase dramatically influence the consumer’s decision-making process.
Many factors affect a purchase. These include the consumer’s antecedent state (e.g., his or her mood, time pressure, or disposition toward shopping). Time is an important resource that often determines how much effort and search will go into a decision. Our moods are influenced by the degree of pleasure and arousal a store environment creates.
The usage context of a product is a segmentation variable; consumers look for different product attributes depending on the use to which they intend to put their purchase. The presence or absence of other people (co- consumers)—and the types of people they are—can also affect a consumer’s decisions. The shopping experience also is a pivotal part of the purchase decision. In many cases, retailing is like theater: The consumer’s evaluation of stores and products may depend on the type of “performance” he witnesses. The actors (e.g., salespeople), the setting (the store environment), and the props (e.g., store displays) influence this evaluation. Like a brand personality, a number of factors, such as perceived convenience, sophistication, and expertise of salespeople, determine store image. With increasing competition from nonstore alternatives, creating a positive shopping experience has never been more important. Online shopping is growing in importance, and this new way to acquire products has both good (e.g., convenience) and bad (e.g., security) aspects.
The information a store’s layout, web site, or salespeople provides strongly influences a purchase decision.
Because we don’t make many purchase decisions until we’re actually in the store, Point-of-purchase (POP) stimuli are important sales tools. These include product samples, elaborate package displays, place-based media, and in-store promotional materials such as “shelf talkers.” POP stimuli are particularly useful in promoting impulse buying, which happens when a consumer yields to a sudden urge for a product. Increasingly, mobile shopping apps are also playing a key role. The consumer’s encounter with a salesperson is a complex and important process. The outcome can be affected by such factors as the salesperson’s similarity to the customer and his or her perceived credibility.
The growth of a “sharing economy” changes how many consumers think about buying rather than renting products.
In the rapidly growing sharing economy people rent what they need rather than buy it. New technologies make this process much easier and online networks allow us to form bonds of trust with strangers. In addition, many consumers no longer place a premium on owning products and prefer to “borrow” them only for the specific times when they actually need them.
Our decisions about how to dispose of a product are as important as how we decide to obtain it in the first place.
Concern about the environment and waste make the issue of product disposal key in many categories. In addition to understanding if and how consumers recycle, newer recommerce models such as swishing are emerging that enable people to share more of their used goods with one another rather than disposing of them.

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