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A Salesperson Driving to Visit a Client Located Two Hours

question 264

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A salesperson driving to visit a client located two hours away has a tire blow out on the highway.He walks about a mile to the next exit,where he finds a service station.The owner of the station says he can replace the blown tire,but it will cost twice as much as it would to purchase a tire in the salesperson's home city.The salesperson,not wanting to be late for his appointment,agrees to pay the higher price in order to get back on the road.This case illustrates the effect of ________ on buying behavior.


Definitions:

Simple Structure

An organizational form characterized by low complexity, few layers of management, and a loose division of labor.

Professional Bureaucracy

An organizational structure characterized by highly specialized jobs and a strong reliance on trained professionals to make decisions.

Machine Bureaucracy

An organizational structure characterized by a high degree of formalization and centralized decision-making.

Adhocracy

An organizational structure that is flexible and adaptable, characterized by a lack of formal hierarchy and the ability to quickly respond to changes.

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