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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...

Groups and Social Media

Other people and groups, especially those that possess social power, influence our decisions.
We belong to or admire many different groups, and a desire for them to accept us often drives our purchase decisions. Individuals or groups whose opinions or behavior are particularly important to consumers are reference groups. Both formal and informal groups influence the individual’s purchase decisions, although such factors as the conspicuousness of the product and the relevance of the reference group for a particular purchase determine how influential the reference group is.
Individuals have influence in a group to the extent that they possess social power. Types of social power include information power, referent power, legitimate power, expert power, reward power, and coercive power.
Brand communities unite consumers who share a common passion for a product. Brandfests, which companies organize to encourage this kind of community, can build brand loyalty and reinforce group membership.
We conform to the desires of others for two basic reasons: (1) People who model their behavior after others because they take others’ behavior as evidence of the correct way to act are conforming because of informational social influence; and (2) those who conform to satisfy the expectations of others or to be accepted by the group are affected by normative social influence. Group members often do things they would not do as individuals because their identities become merged with the group; they become deindividuated.
Word-of-mouth communication is the most important driver of product choice.
Much of what we know about products we learn through word-of-mouth (WOM) communication rather than formal advertising. We tend to exchange product-related information in casual conversations. Although WOM often is helpful to make consumers aware of products, it can also hurt companies when damaging product rumors or negative WOM occur.
Opinion leaders’ recommendations are more influential than others when we decide what to buy.
Opinion leaders who are knowledgeable about a product and whose opinions are highly regarded tend to influence others’ choices. Specific opinion leaders are somewhat hard to identify, but marketers who know their general characteristics can try to target them in their media and promotional strategies. Other influencers include market mavens, who have a general interest in marketplace activities; and surrogate consumers, who are compensated for their advice about purchases.
Social media changes the way we learn about and select products.
Social media platforms significantly increase our access to others’ opinions about products and services. Virtual consumption communities unite those who share a common passion for products that include apparel, cars, music, beer, political candidates, etc. Many social media users post content online that satisfies motive for selfenhancement as well as the desire to share opinions and experiences about products and services. Consumers may engage with these brands via social games. Viral marketing techniques enlist individuals to spread online WOM about brands. Online opinion leaders play a pivotal role in disseminating influential recommendations and product information.

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