Page 553 - Foundations of Marketing

G-8 Glossary

offshoring The practice of moving percent-of-sales approach Budgeting premium pricing Pricing the highest-
a business process that was done for an advertising campaign by quality or most versatile products
domestically at the local factory to a multiplying the firm’s past and higher than other models in the
foreign country, regardless of whether expected sales by a standard product line
the production accomplished in the percentage premiums Items offered free or at a
foreign country is performed by the perception The process of selecting, minimal cost as a bonus for purchasing
local company (e.g., in a wholly owned organizing, and interpreting a product
subsidiary) or a third party (e.g., information inputs to produce meaning press conference A meeting used to
subcontractor) performance standard An expected level announce major news events
oligopoly A competitive structure in of performance against which actual prestige pricing Setting prices at an
which a few sellers control the supply performance can be compared artificially high level to convey
of a large proportion of a product periodic discounting Temporary reduction prestige or a quality image
online fraud Any attempt to conduct of prices on a patterned or systematic prestige sensitive Drawn to products that
fraudulent activities online, including basis signify prominence and status
deceiving consumers into releasing perishability The inability of unused pretest Evaluation of advertisements
personal information service capacity to be stored for future performed before a campaign begins
online retailing Retailing that makes use price The value paid for a product in a
products available to buyers through personal interview survey A research marketing exchange
computer connections method in which participants respond price competition Emphasizing price
online survey A research method in which to survey questions face-to-face as an issue and matching or beating
respondents answer a questionnaire via personal selling Paid personal competitors’ prices
e-mail or on a website communication that attempts to inform price conscious Striving to pay low prices
on-site computer interview A variation of customers and persuade them to buy price discrimination Employing price
the shopping mall intercept interview products in an exchange situation differentials that injure competition
in which respondents complete a personality A set of internal traits and by giving one or more buyers a
self-administered questionnaire distinct behavioral tendencies that competitive advantage
displayed on a computer monitor result in consistent patterns of behavior price elasticity of demand A measure of
operations management The total set in certain situations the sensitivity of demand to changes
of managerial activities used by an physical distribution Activities used to in price
organization to transform resource move products from producers to price leaders Products priced near or even
inputs into products, services, or both consumers and other end users below cost
opinion leader A member of an informal pioneer advertising Advertising that tries price lining Setting a limited number of
group who provides information to stimulate demand for a product prices for selected groups or lines of
about a specific topic to other group category rather than a specific brand merchandise
members by informing potential buyers about price skimming Charging the highest
opportunity cost The value of the benefit the product possible price that buyers who most
given up by choosing one alternative pioneer promotion Promotion that informs desire the product will pay
over another consumers about a new product pricing objectives Goals that describe what
order getters Salespeople who sell to new podcast Audio or video file that can be a firm wants to achieve through pricing
customers and increase sales to current downloaded from the Internet with a primary data Data observed and recorded
customers subscription that automatically delivers or collected directly from respondents
order processing The receipt and new content to listening devices or primary demand Demand for a product
transmission of sales order information personal computers; podcasts offer the category rather than for a specific brand
order takers Salespeople who primarily benefit of convenience, giving users private distributor brand A brand initiated
seek repeat sales the ability to listen to or view content and owned by a reseller
organizational (corporate) culture A set when and where they choose private warehouses Company-operated
of values, beliefs, goals, norms, and point-of-purchase (POP) materials Signs, facilities for storing and shipping
rituals that members of an organization window displays, display racks, and products
share similar devices used to attract customers probability sampling A type of sampling
outsourcing The practice of contracting population All the elements, units, or in which every element in the
noncore operations with an individuals of interest to researchers population being studied has a known
organization that specializes in that for a specific study chance of being selected for study
operation posttest Evaluation of advertising process materials Materials that are used
patronage motives Motives that influence effectiveness after the campaign directly in the production of other
where a person purchases products on power shopping center A type of products but are not readily identifiable
a regular basis shopping center that combines producer markets Individuals and
penetration pricing Setting prices below off-price stores with category killers business organizations that purchase
those of competing brands to penetrate premium money (push money) Extra products to make profits by using them
a market and gain a significant market compensation to salespeople for to produce other products or using
share quickly pushing a line of goods them in their operations

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