Page 690 - Introduction to Business

G-16 GLOSSARY

price inelastic demand The demand where significant increases production information systems Information systems that
in the price of a product or service will have little effect on help a company develop, plan, execute, and control the
the quantity of the product or service demanded (Ch 1) production of goods and services (Ch 17)
price inelastic supply The supply where a large change in the production system The system that businesses use to pro-
price will have little impact on the quantity of a good or duce products (Ch 16)
service supplied by the producer (Ch 1) productivity The dollar output of goods and services per
primary drives Instinctive or unlearned motives like hunger, dollar input of labor (Ch 1)
thirst, and sex that direct behavior that is vital to sur- product-oriented layout A layout where production re-
vival (Ch 7) sources are dedicated to products (Ch 16)
primary market The segment of the market for new products profit The difference between revenue (income or sales) and
whose needs and desires are the most compatible with a expenditure (cost of goods or services sold) (Ch 1)
new product’s features and benefits; The initial sale of a profit margin A company’s profit divided by its revenues; The
security in the financial marketplace (Ch 9; Ch 14) ratio of net income to net sales (Ch 8; Ch 12)
primary storage The computer system component that profit sharing plans Pay plans that give employees some share
stores the operating system and all or part of a software of overall company profits (Ch 6)
program that is being executed, as well as the data that programming Translating the system specifications into soft-
are being used by the program (Ch 17) ware programs (Ch 17)
principal, or par, value The amount paid back by a firm on programming language The tool that a programmer uses to
each bond on its maturity date (Ch 13) develop the sets of instructions that constitute a software
principals Owners—shareholders—of a business (Ch 3) program (Ch 17)
privacy The condition of individuals of being left alone, free project process A process where the product is produced in
from surveillance or interference from other individuals low volumes with high levels of customization (Ch 16)
or organizations, including the state (Ch 18) promotion mix The configuration of advertising, sales pro-
private brands Products that carry the brand name of the motion, personal selling, and publicity used to market
retailer (Ch 9) products and services (Ch 10)
private carriers Trucks owned and operated by shippers (Ch 10) promotional package The package that encloses a product
private pension plans Pension plans offered by private firms whose purpose is to help sell the product at the retail
to employees (Ch 14) level (Ch 9)
private warehouses Warehouses owned (purchased or con- property insurance Protection purchased from an insurance
structed) by a firm (Ch 10) company against property losses due to fire, water and
privatization The process of selling state enterprises to pri- wind damage, lightning, crime, and so on (Ch 4)
vate entrepreneurs (Ch 1) property-casualty insurance Insurance policies to protect
procedural controls Controls to ensure the accuracy and property, such as homes, buildings, vehicles, and other
integrity of computer and network operations and of sys- capital assets (Ch 14)
tems development activities (Ch 17) prospecting Ranking of possible customers according to their
process-oriented layout A layout where the different activity potential sales volume and the likelihood of their purchas-
centers are organized by function (Ch 16) ing the product (Ch 10)
product departmentalization Departmentalization based on protection The government practice imposing trade barriers
the products or services sold (Ch 5) (e.g., tariffs) to shield domestic producers from interna-
product depth The number of specific products or brands tional competition (Ch 2)
within a product line (Ch 9) protective package The package that safeguards products as
product design The tangible aspects of a product, including they are being transported (Ch 9)
materials, length, width, height, and hardness or softness proxy The transfer of voting rights from the owner of common
(Ch 9) stock to someone else (Ch 13)
product differentiation A strategy that firms employ to make psychographics The analysis and understanding of the con-
their product seem different from those of their competi- sumer’s mind to identify consumer likes, dislikes, or pref-
tors (Ch 1) erences and develop commercials that manipulate the
product elimination The process whereby poorly performing recipient’s mind to create a need for certain new goods or
products are dropped (Ch 9) services (Ch 1)
product life cycle theory The theory that explains the differ- psychological factors Learning, perception, motives, atti-
ent stages—introduction, growth, maturity, and decline— tudes, and self-concept that affect what, why, and how
that a product goes through before it fades away (Ch 1) consumers purchase goods and services (Ch 8)
product mix The combination of design, quality, brand public pension plans Pension plans offered by federal, state,
name, package, warranty, and product line width and and local government that are backed by the taxing power
depth a company uses for its product lines (Ch 9) of the government (Ch 14)
product width The number of different product lines a com- public relations Press releases and other efforts directed to
pany is marketing (Ch 9) the news media that portray a company, its products, or its
product’s quality The physical aspects of a product that affect personnel in a favorable light or combat unfavorable pub-
its level of performance (Ch 9) licity (Ch 10)
production The creation of goods or services; The informa- public warehouses Warehouses not owned by the company
tion systems development stage when the conversion is that leases space in them (Ch 10)
completed and the new information system is being uti- publicity News items about a company, its products, or its
lized by end users (Ch 16; Ch 17) personnel that appear in the mass media (Ch 10)

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