Dictionary

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A/B testing, at its simplest, is randomly showing a visitor one version of a page- (A) version or (B) version- and tracking the changes in behavior based on which version they saw. (A) version is normally your existing design ("control" in statistics lingo); and (B) version is the "challenger" with one copy or design element changed. In a "50/50 A/B split test," you're flipping a coin to decide which version of a page to show. A classic example would be comparing conversions resulting from serving either version (A) or (B), where the versions display different headlines. A/B tests are commonly applied to clicked-on ad copy and landing page copy or designs to determine which version drives the more desired result. Source: SEMPO

The discontinuance of a marketed product. It is also called product deletion or product elimination. Abandonment may occur at any time from shortly after launch (a new product failure) to many years later. The criterion for this decision is the same as for a new product: net present value of the product's estimated stream of future earnings, both direct and indirect. Simplified heuristics (e.g., number of years without a profit) may be substituted for this criterion. 2. Term used to describe when customers shop online, but fail to complete a purchase.

The number of abandoned shopping carts vs. the number of completed transactions.

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An approach for classifying accounts based on their attractiveness. A accounts are the most attractive while C accounts are the least attractive.

A classification scheme used to implement inventory management strategies. Products are segmented into groups based upon unit sales or some other criterion. (For example, class A might be items with the highest frequency of sales, etc.) Inventory management is then guided by this segmentation.

Formerly known as The Mining Company, About is a guide based information portal. Source: Lazworld

A term borrowed from print newspapers that references the top portion of a Web page that is visible without scrolling. Web designers typically recommend that important information should be included above the fold.

Any cost involved in the advertising production process that is specifically listed in the budget.

When a country has the capacity to produce goods at a lower cost than another country, it is said to have an absolute production advantage. Even if a country has an absolute advantage in the production of all goods, it can still gain from specialization and trade if it has a comparative advantage in the production of any good.

Absolute URLs use the full-path address, such as http://www.domain.com/page1.htm. Source: SEMPO

The process of speeding up the new product development process. Development can be accelerated in a number of ways, such as speeding up the development process, eliminating unnecessary steps, undertaking two or more development tasks in parallel, and eliminating or minimizing decision-making delays.

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A sales promotion goal achieved when consumers or channel members purchase the product before the time they would have normally bought.

This includes those prices that buyers are willing to pay for goods or services.

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The miscellaneous apparel related items that are offered in department stores and apparel specialty stores including gloves, hosiery, handbags, jewelry, handkerchiefs, scarves, etc.

The portable factory equipment and tools that are used in the production process and do not become part of the finished product. They are generally inexpensive, short-lived, and relatively standardized. Examples are hand tools, lift trucks, and office equipment (typewriters, desks).

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A service area in a large store for customer accommodation on such things as store information, exchanges or refunds, gift certificates, or stamping parking permits.

A customer, usually an institution or another organization, that purchases a company's products or services.

The categorization of a salesperson's customers into groups, based on criteria such as potential sales, for the purpose of developing a sales call plan. Comment: The classification scheme reflects the relative attractiveness of the various customers and is used to direct sales effort.

1. (advertising definition) The person in an advertising agency who serves as the principal contact with a specific agency client (or more than one client) and coordinates the work of agency staff members assigned to those client(s). 2. (sales definition) A salesperson who has responsibility for the overall relationship between his or her firm and a few major accounts. Comment: An account executive coordinates financial, production, and technical capabilities of the firm to satisfy the needs of the account.

The members of the various advertising agency functional departments (such as account management, creative, media planning, research, traffic, etc.) who are assigned to work on an ongoing basis on the projects related to a particular agency client.

A premium or special promotion item offered to induce the opening of a new account, especially in financial institutions and stores operating on an installment-credit plan basis.

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1. (consumer behavior definition) The learning of the behaviors and mores of a culture other than the one in which the individual was raised. For example, acculturation is the process by which a recent immigrant to the U.S. learns the American way of life. 2. (consumer behavior definition) The process by which people in one culture or subculture learn to understand and adapt to the norms, values, life styles, and behaviors of people in another culture or subculture.

A sorting process that brings similar stocks from a number of sources together into a larger homogeneous supply.

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1. (product development definition) The acquiring by one firm of another firm's technology (process, facility, or material), product rights (trademarks), or entire businesses in order to increase its total sales. The acquisition may be related to the firm's current business (e.g., the acquisition of a competitor, a supplier, or a buyer) or may be unrelated (e.g., the acquisition of an entirely different business). Acquisition is a method of expanding one's product offering by means other than internal development. Any combination that forms one company from two or more previously existing companies is known as a merger.

2. (strategic marketing definition) The acquiring by one firm of other technology (process, facility, or material), product rights (trademarks), or entire businesses in order to increase its total sales. The acquisition may be related to the firm's current business (e.g., the acquisition of a competitor, a supplier, or a buyer) or may be unrelated (e.g., the acquisition of an entirely new business). Acquisition is a method of' expanding one's product offering by means other than internal development. Any combination that forms one company from two or more previously existing companies is known as a merger.

A process of finding those potential customers who are in the market and ready to buy. The attempt to lead customers to a web site and to welcome them, answer their questions and close the sale. Source: SEMPO

The buyers' perceptions of the relative worth of a product or service to them. It is formally defined as the subjectively weighted difference between the most a buyer would be willing to pay for the item less the actual price of the item.

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The essentially automatic process by which knowledge and meanings are retrieved from memory and made available for use by cognitive processes.

Defined by IEG as the marketing activities a company conducts to promote its sponsorship. Money spent on activation is over and above the rights fee paid to the sponsored property. Also known as leverage. Source: IEG

A method of listening that attempts to draw out as much information as possible by actively processing information received and stimulating the communication of additional information.

A measurable series of psychographic variables involving the interests and beliefs of consumers.

A cost accounting system that ties actual costs to the direct performance and value of activities. Costs are not allocated based on a formula, but are traced and charged to specific activities.

The behavioral objective for salespeople, such as the number of calls made or number of displays set up in a day.

A quota that focuses on the activities in which sales representatives are supposed to engage. Activity quotas focus on a salesperson's efforts rather than the sales volume outcomes of these activities. Examples of activity quotas include number of letters to potential accounts, number of product demonstrations, number of calls on new accounts, and number of submitted proposals.

The customer's current and future value if the current level of business is maintainted over time. This dimension of value includes revenue, but also elements such as how engaged the customer is in the business, communications and referals.

The name used to indicate an advertising message in the print media.

Software available to Internet users that blocks the appearance of advertising on Web pages. Typically, these programs suppress so-called pop-up and pop-under ads.

Number of times users click on an ad banner. Source: Lazworld

The main text of a clickable search or context-served ad. It usually makes up the second and third lines of a displayed ad, between the Ad Title and the Display URL. Source: SEMPO

A group of ads within a Campaign. Source: Lazworld

In internet marketing, Ad Scheduling is the practice of scheduling the day into several parts, during each of which a different advertising rule is applied based on advertising objective, budget, and competitors. Source: Lazworld

The first line of text displayed in a clickable search or context-served ad. Ad Titles serve as ad headlines. Source: SEMPO

A duty or tax that is levied as a percentage of the value of the imported goods. It also is known as a tariff.

Number of times an ad banner is downloaded and presumably seen by visitors. If the same ad appears on multiple pages simultaneously, this statistic may understate the number of ad impressions, due to browser caching. Corresponds to net impressions in traditional media. There is currently no way of knowing if an ad was actually loaded. Most servers record an ad as served even if it was not. Source: Lazworld

The process of adjusting to environmental stimuli such that the stimuli become less noticed.

A pricing for the rest of the world of adapting home country prices to local competitive and market circumstances. It also is known as polycentric pricing policy.

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An advertising budget method whereby the advertiser uses test markets to examine the sales level and profitability of advertising spending levels that are higher and lower than the spending level currently being used by the advertiser. The advertiser may decide to adapt to either a higher or lower spending level depending on test market results.

An approach (and philosophy) for management decisions, calling for continuous experimentation to establish empirically the market response functions. Most common in direct marketing, it can and has been applied to advertising and other marketing mix variables. The experiment should reflect the needed variation in stimuli, cost of measuring the results, lost opportunity cost in the non-optimal cells, and management confidence in the base strategy.

An iterative process framework for organizing myriad information flows, analyses, issues, and opinions that coalesce into strategic decisions. There are four stages to this process: (1) situation assessment-the analysis of internal and environmental factors that influence business performance, combined with a comparison of past performance relative to objectives and expectations, (2) strategic thinking-identification of key issues that have a major impact on performance and the generation of creative strategic options for dealing with each issue, (3) decision making-selection of strategic thrust, choices of options, and allocation of resources in light of mutually acceptable objectives, and (4) implementation-ongoing activities that translate strategic decisions into specific programs, projects, and near-term functional action plans. The process is iterative because the implementation phase will eventually be followed by a revised situation assessment.

Also called adapted product, this market entry acquires its uniqueness by variation on another, more pioneering product. The degree of adaptation is more than trivial (to avoid being an emulative product or "me-too" product) but it varies greatly in significance.

An approach to personal selling in which selling behaviors are altered during the sales interaction or across customer interactions, based on information about the nature of the selling situation.

A decision calculus model for the advertising budgeting decision. The model assumes that there is a fixed upper limit of response to saturation advertising, and it also assumes that there is a fixed lower limit to response under no advertising for an extended period. Within this range, increases in advertising spending increase response, and reductions in advertising spending lead to a decay in response over time. The model's parameters are calculated using subjective responses to a series of point-estimate questions concerning the likely impact of various advertising spending decisions (Little 1970). The effectiveness of the model's use has been discussed by Chakravarthi, Mitchell, and Staelin (1981) and Little and Lodish (1981).

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An increase of a previous markdown to further lower the selling price.

The adding of another markup to the original markup. It is the amount of a price increase, especially in stores operating under the retail inventory method of accounting.

A downward adjustment in price that is offset against a previously recorded additional markup.

In charge accounts, the purchasing of additional merchandise without paying in full for previous purchases, especially in installment-credit plan selling.

A unique identifier for a computer or site online, usually a URL for a web site for marked with an @ for an email address. Literally, it is how your computer finds a location on the information highway. Source: Lazworld

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A store layout plan that determines which categories of merchandise will be placed adjacent to each other.

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A form of vertical marketing system designed to control a line or classification of merchandise as opposed to an entire store's operation. Such systems involve the development of comprehensive programs for specified lines of merchandise. The vertically aligned companies, even though in a non-ownership position, may work together to reduce the total systems cost of such activities as advertising, transportation, and data processing.

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A term applied to studies relying on questionnaires and referring to the speed, cost, and control of the replies afforded by the mode of administration.

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A model providing a decision support system for making advertising budget, copy, and media allocation decisions. The model assumes that an advertising campaign of given duration has as its objective specific changes in the cognitions and/or decisions in various consumer market segments. It evaluates the value of any potential media insertion schedule by aggregating over all segments (and individuals within each segment) the projected impact of the schedule for each individual (Aaker 1975).

Persons or firms that adopt an innovation are often classified into five groups according to the sequence of their adoption of it: (1) Innovators (the first 2 to 5 percent); (2) Early adopters (the next 10 to 15 percent); (3) Early majority (the next 35 percent); (4) Late majority (the next 35 percent); (5) Laggards (the final 5 to 10 percent). The numbers are percents of the total number of actual adopters, not of the total adopter categories (the number of persons or firms in the marketplace). There is wide disagreement on the exact portion in each category.

This term sometimes is used to refer to a model of stages in the purchase process ranging from awareness to knowledge, evaluation, trial, and adoption. In other cases, it is used as a synonym for the diffusion process.

An arrangement by which the seller sets a specific future date when the terms of sale become applicable. For example, the order may be placed on January 5 and the goods shipped on January 10, but under the terms "2/10, net 30 as of May 1." In this case, the discount and net periods are calculated from May 1. Season dating is another name for terms of this kind.

An order placed well in advance of the desired time of shipment. By placing orders in advance of the actual buying season, a buyer is enabled often to get a lower price because the buyer gives the supplier business when the latter would normally be receiving little.

A brand that is owned by an organization (usually a manufacturer) that uses a marketing strategy usually involving substantial advertising. An advertised brand is a consumer product, though it need not be, and is contrasted with a private brand, which is not normally advertised heavily.

Any announcement or persuasive message placed in the mass media in paid or donated time or space by an identified individual, company, or organization.

The company, organization, or individual who pays for advertising space or time to present an announcement or persuasive message to the public.

The placement of announcements and persuasive messages in time or space purchased in any of the mass media by business firms, nonprofit organizations, government agencies, and individuals who seek to inform and/ or persuade members of a particular target market or audience about their products, services, organizations, or ideas.

An organization that provides a variety of advertising related services to clients seeking assistance in their advertising activities. A full-service advertising agency engages in the planning and administration of advertising campaigns, including setting advertising objectives, developing advertising strategies, developing and producing the advertising messages, developing and executing media plans, and coordinating related activities such as sales promotion and public relations. A limited-service advertising agency concentrates on one of the major advertising agency functions such as developing and producing advertising messages or media plans.

A payment made to a retail or wholesale operator by the seller of an advertised product or for use in purchasing local advertising time and space for the advertiser's product.

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The decision about how much money should be spent for advertising during a specific time period in order to accomplish the specific objectives of a client. This decision also involves the allocation of specific amounts of the total advertising appropriation to various media, creative approaches, times of the year, and to the production costs involved in preparing the advertising messages for placement in the various media.

A group of advertisements, commercials, and related promotional materials and activities that are designed to be used during the same period of time as part of a coordinated advertising plan to meet the specified advertising objectives of a client.

A statement made in advertising about the benefits, characteristics, and/or performance of a product or service designed to persuade the customer to make a purchase.

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A contractual agreement between an advertiser and the operator of any form of advertising media for the purchase of specified types of advertising time or space.

The verbal or written component of advertising messages.

A nonprofit organization in the United States composed of advertisers, advertising agencies, and advertising media whose purpose is to organize and carry out public service advertising. The Council selects particular public service organizations to support, identifies volunteer advertising agencies to create advertising campaigns for each selected public service organization, and coordinates the distribution of the advertising materials to the advertising media, which donate time or space in which to disseminate each campaign to the public.

An evaluation of the extent to which a specific advertisement or advertising campaign meets the objectives specified by the client. There is a wide variety of approaches to evaluation, including inquiry tests, recall tests, and market tests. The measurement approaches include recall of ads and advertising themes, attitudes toward the advertising, persuasiveness, and impact on actual sales levels.

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The theme or concept that serves as the organizing thought for an advertisement. Ideas are used to dramatize the product-related information conveyed in advertising.

The advertising manager participates in the development of marketing plans, acts as the principal contact with the advertising agency, provides the agency with market and product data and budget guidelines, and critiques the agency's creative and media recommendations at the time of (or prior to) their submission to marketing management. The advertising manager normally reports to the corporate or division marketing manager. Comment: Many consumer packaged goods companies with product manager setups do not have an advertising manager; rather the functions listed above are performed by product managers or brand managers for their assigned products. If, in such setups, there is an advertising manager, this executive usually is limited to providing expert counsel and services to the product managers.

The various mass media that can be employed to carry advertising messages to potential audiences or target markets for products, services, organizations, or ideas. These media include newspapers, magazines, direct mail advertising, Yellow Pages, radio, broadcast television, cable television, outdoor advertising, transit advertising, and specialty advertising.

The visual and/or auditory information prepared by an advertiser to inform and/or persuade an audience regarding a product, organization, or idea. It is sometimes called the creative work by advertising professionals in recognition of the talent and skill required to prepare the more effective pieces of advertising.

Large numbers of models have been used to assist in making advertising decisions. Econometric and other market models, as well as decision calculus models such as ADBUDG, have been used in the determination of advertising budgets. Media selection and scheduling models have included linear and nonlinear programming-type models, such as MEDIAC, and decision calculus models. Few models, such as Aaker's ADMOD (1975), have been designed to deal simultaneously with budget, copy, and media allocation decisions.

An Internet business model where advertisers go to one source to buy advertising on several Web sites at once through run-of-category and run-of-network buys.

A statement prepared by the advertiser (often in association with an advertising agency) to set forth specific goals to be accomplished and the time period in which they are to be accomplished. Objectives can be stated in such terms as products to be sold, the amount of trial purchases, the amount of repeat purchases, audience members reached, the frequency with which audience members are reached, and percentages of the audience made aware of the advertising or the product.

The percentage of the target market that remembers a significant portion of the advertising message conveyed by an advertised campaign.

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A statement prepared by the advertiser (often in association with an advertising agency) setting forth the (1) competitive frame, (2) target market, and (3) message argument to be used in an advertising campaign for a specific product or service.

The documentation by means of tests or other evidence of product performance claims made in advertising. Federal Trade Commission decisions indicate that it is a deceptive and/or unfair practice for advertisers to fail to possess reasonable documentation for product performance claims made in advertising messages before the claims are disseminated to the public.

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The occurrence of consumers becoming so used to an ad that they stop paying attention to it.

Under the Wheeler Lea Amendment to the Federal Trade Commission Act, unfair or deceptive acts or practices (which may include advertising) are prohibited. Besides the FTC, the Alcohol Tobacco and Tax Division of the Internal Revenue Service, the FCC, the FDA, the SEC, and the U. S. Postal Service are involved in regulating advertising.

A form of trade sales promotion in which retailers are given a discount in exchange for either promoting the product in their own advertising, setting up a product display, or both. It is also known as a display allowance.

A descriptive model explaining the level of marketing communication expenditures for industrial products. Two of the more important explanatory variables are the size of the product market (i.e., dollar sales in the previous year) and the number of potential customers that the marketing effort is to reach (Lilien 1979).

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A type of advertising placed by businesses and other organizations that is intended to communicate a viewpoint about a controversial topic relating to the social, political, or economic environment.

1. (consumer behavior definition) The feelings a person has toward an attitude object such as a brand, advertisement, salesperson, etc. Affect is growing in importance in attempts to understand and predict consumer behavior. (2). (consumer behavior definition) The affective responses include states such as emotions, specific feelings, and moods that vary in level of intensity and arousal.

A state of conflict that exists when a channel member feels stress, frustration, tension, or hostility toward another channel member.

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A dishonest tactic used by affilitates in an affiliate marketing program to generate unearned, illegitimate income. For example, an affiliate in a pay-per-click advertising program repeatedly clicking on a link to generate commission income.

An online marketing strategy that involves revenue sharing between online advertisers/merchants and online publishers/salespeople. Compensation is typically awarded based on performance measures such as sales, clicks, registrations or a combination of factors.

The advertiser in an affiliate marketing relationship.

Any of a number of businesses that provide support services to affiliate marketing programs. Services can include tracking commissions and activity, providing marketing and sales support, or other services.

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A store operated as a unit of a voluntary group or franchise group. Also, it may be a store controlled by another store but operated under a separate name.

A tendency for similar or complementary retail stores to be located in close proximity to one another. For example, furniture stores in a city may be located in close proximity to one another in order to facilitate consumer comparison shopping.

The services offered by the selling firm after the sale has been made to promote goodwill, ensure customer satisfaction, and develop customer loyalty. Comment: This requires a salesperson to monitor order processing; to ensure proper installation and initial use of products; and to provide maintenance, repair services, and information on the care and use of products.

The potential future sales generated by owners of equipment for repair and replacement parts.

The dollar reduction in welfare experienced by the principal due to the inherent nature of the agency relationship with management.

An advertising agency assigned specific media buying responsibilities by a client.

A theory of the firm that seeks to explain corporate activities as arising out of the natural conflicts between the principals (stockholders) and agents (managers) of a firm.

1. (sales definition) A person acts as a representative of a firm or individual. 2. (retailing definition) A business unit that negotiates purchases, sales, or both but does not take title to the goods in which it deals. 3. (retailing definition) A person agent; one who represents the principal (who, in the case of retailing, is the store or merchant) and who acts under authority, whether in buying or in bringing the principal into business relations with third parties. 4. (global marketing definition) A company or individual that represents a company in a particular market. Normally an agent does not take title to goods.

Independent middlemen (intermediaries) who do not take title to the goods they handle, but do actively negotiate the purchase or sale of goods for their clients.

Data that is rolled up from a smaller unit to show summary data.

A concept of market segmentation that assumes that most consumers are alike. Retailers adhering to the concept focus on common dimensions of the market rather than uniqueness, and the strategy is to focus on the broadest possible number of buyers by an appeal to universal product themes. Reliance is on mass distribution, mass advertising, and a universal theme of low price.

1. In retailing, aging is the length of time merchandise has been in stock. 2. The aging of certain products is part of the curing--e.g., tobacco, liquor, cheese. 3. The classification of accounts receivable according to the number of days outstanding.

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An approach to understanding how advertising and selling supposedly work. The assumption is that the consumer passes through several steps in the influence process. First, Attention must be developed, to be followed by Interest, Desire, and finally Action as called for in the message. Another, but similar, scheme was developed by Lavidge and Steiner in 1961, later to be dubbed the AIDA: Hierarchy of Effects Model by Palda in 1966. This approach involves the hierarchy of effects: awareness, knowledge, liking, preference, conviction, and finally purchase in that order. Note the similarity to the adoption process.

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This act ended classical economic regulation of the airline industry by gradually phasing out price and entry controls and eventually abolishing the Civil Aeronautics Board

A table in a major store aisle, between departments, used to feature special promotional values.

Stands for Asynchronous JavaScript and XML. Ajax is a programming language that allows for the updating of specific sections of content on a web page, without completely reloading the page. Source: SEMPO

Founded in April 1996, Alexa Internet grew out of a vision of Web navigation that is intelligent and constantly improving with the participation of its users. Along the way Alexa has developed an installed based of millions of toolbars, on of the largest Web crawls and an infrastructure to process and serve massive amounts of data. Source: Lazworld

The process a search engine applies to web pages so it can accurately produce a list of results based on a search term. Search engines regularly change their algorithms to improve the quality of the search results. Hence search engine optimisation tends to require constant research and monitoring. Source: Lazworld

A long-term relationship maintained by a commitment among two or more firms to voluntarily give up some of their operational autonomy in an effort to jointly pursue specific goals. The alliance goal is to cooperatively build upon the combined resources of participating firms to improve the performance quality and competitiveness of the channel.

The pooling of complementary resources by two firms in an arrangement that falls short of a full merger or acquisition. Alliances typically involve coordinated activity from very early in the process of new technology development.

A sorting process that consists of breaking a homogeneous supply down into smaller and smaller lots.

A regular 30-day charge account. If paid in full within 30 days from date of statement, the account has no service charge, but when installment payments are made, a service charge is made on the balance at the time of the next billing.

An approach to the advertising budget that establishes the amount to be spent on advertising as the funds remaining after all other necessary expenditures and investments have been covered in the comprehensive budget for the business or organization.

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HTML coding that provides an alternative text message when a non-textual elements such as in image fails to display properly.

A popular search engine. One of the first search engines originally owned by Digital now owned by Yahoo. Source: Lazworld

The net cost of altering goods for customers for repair of items in stock. The cost includes labor, supplies, and all expenses, including costs for this service when purchased outside the store.

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A section, run in conjunction with one or more selling departments, that alters merchandise to customers' wishes, especially for men's and women's apparel.

An overall feeling or mood projected by a store through its aesthetic appeal to human senses.

A promotional strategy whereby a non-sponsor attempts to capitalize on the popularity/prestige of a property by giving the false impression that it is a sponsor. Often employed by the competitors of a property?s official sponsors. Source: IEG

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This act requires that, as of 1994, packaging labels in consumer commodities must be expressed in both inch or pound symbols and the metric system.

A method of trade area analysis that is also known as the similar store or mapping approach. The analysis is divided into four steps: 1) describing the current trade areas by using a technique known as customer spotting; 2) plotting the customer on a map; 3) defining the primary trade zone, secondary trade zone, and tertiary trade zone; and 4) matching the characteristics of stores in the trade areas with a potential new store to estimate its sales potential.

An intensive study of selected examples of the phenomenon of interest.

A statistical test employed with interval data to determine if k (k > 2) samples came from populations with equal means.

A three-step process for making resource allocation decisions. First, the organization's objectives, sub-objectives and strategies are organized hierarchically. Next, the decision maker evaluates, in a pair-wise fashion, each of the elements in a particular stratum of the hierarchy with respect to its importance in accomplishing each of the elements of the next-higher stratum. Finally, a model is applied to these pairwise judgments that produces a set of importance (or priority) weights for each element of each stratum in the hierarchy (Wind and Saaty 1980). Areas of application in marketing include the product portfolio decision, selection of new products to develop, and generation and evaluation of various marketing mix strategies.

Andean Common Market

The reference price or reference product in consumers' comparisons.

A large and well-known retail operation located in a shopping center and serving as an attracting force to draw consumers to the center.

It refers to the visible, clickable text for a hyperlink. Source: Lazworld

The result when buyers make comparisons of prices or products against a reference price or reference product. The result of this comparison is usually weighted toward the anchor, creating an anchor bias, the anchoring effect.

1. (physical distribution definition) A service offering provided by modal operators in addition to basic transportation services. The provision of such services typically includes sorting, storing product prior to delivery, marking or tagging the product, and collecting rate shipment. 2. (retailing definition) The service such as layaway, gift wrap, credit, and others not directly related to the actual sale of a specific product within the store. Some of these services are charged for and some are not.

A format for graphic images that incorporates several images rotated in sequence. This technique is typically used to convey additional information in a limited space (such as a banner ad).

Year-on-year percentage growth (annual growth?%) uses the prior year as a base for expressing percentage change from one year to the next. Source: The MASB Common Language Project. http://www.themasb.org/common-language-project/ http://en.wikipedia.org/wiki/Annual_growth_%25

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The basic electronic data interchange format utilized in North America for communication transmissions.

A discount in addition to the cash discount if a bill is paid prior to the expiration of the cash discount period, usually at the rate of 6 percent per annum--e.g., at this rate, for 60 days prepayment, which is 1/6 of an interest year, the anticipation ratio would be 1 percent of the face amount.

A lease that limits the type and amount of competition a particular retailer faces within a trading area or shopping center.

The penalty duties on goods that have been declared in violation of antidumping laws. The duties that take the form of special additional import charges equal to the dumping margin.

The laws passed by a host government to protect local industries from dumping.

Commonly called the Celler-Kefauver Act, this act amends the Clayton Act to prohibit mergers and acquisitions in restraint of competition by the purchase of assets or of stocks.

Federal antitrust policy is set forth in four laws: the Sherman Antitrust Act, the Clayton Act, the Federal Trade Commission Act, and the Robinson-Patman Act. These laws are negative in character and outlaw restraints of trade, monopolizing, attempting to monopolize, unfair methods of competition, and, where they may substantially lessen competition or tend to create a monopoly, price discrimination, exclusive dealing, and mergers.

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Apache is a free, open-source web server software system that is pervasive on UNIX, Linux, and similar operating system types. It is also available for Windows and other operating systems. Google Analytics' admin system is powered by a variant of Apache. Online: Apache.org Source: Lazworld

Acronym for Application Programming Interface. This is a program that advertisers create to manage their SEM campaigns, bypassing the search engines' interfaces. Source: SEMPO

An application program written in Java which allows viewing of simple animation on web pages. Source: Lazworld

The term used to describe companies that provide software or services to a network of customers on an ongoing basis. Customers pay for those services in a stream of smaller payments rather than simply purchasing software outright.

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The initial stage in a sales interaction. Comment: The objectives of the approach are securing approval for the sales call, getting the prospect's attention and interest, and building rapport with the prospect.

A sale subject to later approval or selection, the customer having unlimited return privileges.

A list of suppliers with whom purchasing agents are allowed to close contracts.

A form attached to an invoice or copy of purchase order in retail stores, containing details to check before payment. It is sometimes called a rider.

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The simultaneous purchase and sale of the same commodity or security in two different markets in an attempt to profit from price differences in the two markets.

The APT is designed as a replacement for the untestable capital asset pricing model. In essence, the APT says that asset returns are a linear function of various macroeconomic factors (e.g., industrial production, the spread between long- and short-term interest rates, expected and unexpected inflation, the spread between high- and low-grade bonds). At the present time the model's empirical validity, testability, and the number and identity of its return generating factors are controversial issues in financial economics.

An enclosed shopping area with a number of stores in lanes under archways and with one roof overhead.

The geographic area surrounding a city in which the broadcasting stations based in that city account for a greater share of the listening or viewing households than do broadcasting stations based in other nearby cities.

A form of a cluster sample in which areas (for example, census tracts, blocks) serve as the primary sampling units. The population is divided into mutually exclusive and exhaustive areas using maps, and a random sample of areas is selected. If all the households in the selected areas are used in the study, it is one-stage area sampling, while if the areas themselves are subsampled with respect to households, the procedure is two-stage area sampling.

The U.S. Department of Defense agency that, in conjunction with leading universities, created ARPAnet, the precursor of the Internet. Source: Lazworld

This is applicable to the cash discount period, indicating that the discount will be granted if payment is made within the number of days specified, calculated from the time the goods arrive at the destination. It is used for the purpose of accommodating distantly located customers. The net payment period, however, is computed from the time of shipment.

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A person possessing good taste who is skilled in the visualization of advertising ideas.

An area of computer science concerned with designing smart computer systems. AI systems exhibit the characteristics generally associated with intelligence in human learning, reasoning, and solving problems.

Promotional strategy linking a company to the visual or performing arts (sponsorship of a symphony concert series, museum exhibit, etc.). Source: IEG

Any illustration (including design elements, drawing, painting, photography) used in the production of print advertising. The term is often used in the short form art.

The merchandise that is offered for sale without recourse to an adjustment or a refund. The goods may be irregular, shopworn, or damaged, but that is understood.

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American Standard Code for Information Interchange. Source: Lazworld

A meta search engine that allows natural english quires. You can ask a question as you search. Source: Lazworld

A reference group that an individual consumer wants to join or be similar to.

Microsoft Active Server Page Framework Source: Lazworld

An establishment engaged primarily in purchasing farm products or seafood in growers' markets or producing regions. The assembler usually purchases in relatively small quantities, concentrates large supplies, and thus assembles economical shipments for movement into a major wholesale market center.

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A model for predicting the market share of a new frequently purchased product using pretest market information. Perceptions and preferences of potential customers are measured via interview and a simulated shopping experience conducted at a central location. The prediction is based on the sample participants' reaction to advertising (exposure to advertisements for several brands), estimated level of product trial (based on the simulated shopping experience), estimated repeat purchase level (via follow-up interview), and brand preference judgments (Silk and Urban 1978). Evidence on the model's predictive validity has been reported by Urban and Katz (1983).

The formal transfer of property, as for benefit of creditors, especially accounts receivable as collateral for a loan.

A type of resident buying office that is cooperatively maintained in a central market by a group of noncompeting independent stores. It is controlled and financed by the stores, each store paying a prorated share of the office expenses.

An association of countries established in 1967 at Bangkok, Thailand, to accelerate economic progress and to increase the stability in the South East Asian region.

A sorting process that consists of building an assortment of products for use in association with each other.

1. (retailing definition) The range of choice offered to the consumer within a particular classification of merchandise. In terms of men's shirts, for example, it is the range of prices, styles, colors, patterns, and materials that is available for customer selection. 2. (retailing definition) The range of choice among substitute characteristics of a given type of article. 3. (channels of distribution definition) A combination of similar and/or complementary products that, taken together, have some definite purpose for providing benefits to specific markets.

A fake grass roots push to generate buzz or interest in a product, service, or idea. Often this movement is motivated by a fee or gift to the writer of a post or comment or may be written under a phony pseudonym.

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The physical characteristics of the store such as architecture, layout, signs and displays, color, lighting, temperature, noise, and smells creating an image in the customer's mind.

The store architecture, layout, lighting, color scheme, temperature, access, noise, assortment, prices, special events, etc., that serve as stimuli and attention attractors of consumers to a retail store.

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The process by which a consumer selects information in the environment to interpret. Also, it is the point at which a consumer becomes aware or conscious of particular stimuli in the environment.

1. (consumer behavior definition) A person's overall evaluation of a concept; an affective response involving general feelings of liking or favorability. 2. (consumer behavior definition) A cognitive process involving positive or negative valences, feelings, or emotions. An attitude toward an object always involves a stirred-up state--a positive or negative feeling or motivational component. It is an interrelated system of cognition, feelings, and action tendencies.

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Consumer's overall evaluations of an object such as a product or store.

Consumers' overall evaluations of an advertisement, not the brand being promoted.

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A market share model that predicts a particular brand's market share as the quotient of that brand's "attraction" divided by the sum of the "attraction" level for all brands in the market. The attraction level for a brand is often in turn expressed as a function of customer characteristics, the marketing mix, and the competitive environment. Conditions under which an attraction model can be expected to hold have been described by Bell, Keeney, and Little (1975).

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A theory, or group of several theories, stemming from Heider's (1958) belief in the importance of understanding individuals' "naive theories" of causality. Attribution theory assumes that individuals attempt to understand their environments in an analytical fashion, arriving at explanations of causality through a fairly logical process. Kelly (1967, 1972) provided an influential elaboration of the process by which individuals infer causality. Based on this, attribution theory suggests that individuals make inferences of causality based on the extent to which events co-vary across individuals, situations, and over time.

A market in which goods are sold to the highest bidder. The auction usually is well publicized in advance or held at specific times well known in the trade. Exchange is effected in accordance with definite rules, with sales made to the highest bidder.

A business establishment engaged in selling merchandise on an agency basis by the auction method.

The most popular type of PPC bidding. First, an advertiser determines what maximum amount per click they are willing to spend for a keyword. If there is no competition for that keyword, the advertiser pays their bid, or less, for every click. If there is competition at auction for that keyword, then the advertiser with the highest bid will pay one penny more than their nearest competitor. For example, advertiser A is willing to bid up to $0.50; advertiser B is willing to bid up to $0.75. If advertiser A's actual bid is $0.23, then advertiser B will only pay $0.24 per click. Also referred to as market or competition-driven bidding. Source: SEMPO

The number and/or characteristics of the persons or households who are exposed to a particular type of advertising media or media vehicle.

The total number of different persons or households exposed to a media vehicle or to a particular advertising campaign during a specified period of time.

The total number of persons or households exposed more than once to the same media vehicle or to a particular advertising campaign during a specified period of time.

An electronic monitoring device used to measure the time periods during which a television set is being used and the specific channel to which it is tuned at each moment.

The verbal mention of a sponsor on-site or during a TV or radio broadcast or Web cast. Source: IEG

An organization sponsored by advertisers, advertising agencies, and print media publishers that verifies the audience circulation figures claimed by newspapers and magazines.

The reconciliation of daily cash and charge sales against the recorded total on the sales registers. This reconciliation is accomplished in a back office procedure at the end of the day.

Transportation freight bills are checked to assure billing accuracy. Preauditing determines the proper rate and charges prior to payment of a freight bill. Postauditing makes the same determination after payment.

Third-party company that tracks, counts, and verifies ad-banner requests or verifies a Web site's ad reporting system. Source: Lazworld

This is the view of a product that includes not only its core benefit and its physical being, but adds other sources of benefits such as service, warranty, and image. The augmented aspects are added to the physical product by action of the seller, e.g., with company reputation or with service.

A process by which credit sales are approved either through a telephone system from the selling floor to the credit office or by an automated system tied into a point-of-sale system.

A dealer who has a franchise to sell a manufacturer's product. The authorized dealer is usually the only dealer or one of a few selected dealers in a trading area.

A materials handling system that does not require a driver. The AGVS is automatically routed and positioned at destination by an optical or magnetic guidance system.

An automated unit-load handling system using high-rise, structured steel vertical racks that improves materials-handling productivity, provides maximum storage density per square foot of floor space, and minimizes the direct labor required for handling.

A machine that allows use of special cards by consumers to make deposits, withdraw cash, or transfer funds among accounts via electronic funds transfer.

A system whereby customers have the opportunity to check themselves out of a store by scanning their purchases with the point-of-sale system, entering their customer identification card, and receiving clearance to exit the store.

An establishment primarily engaged in the retail sales of products by means of automatic merchandising units, also referred to as vending machines.

Search engines identify which ad for an individual advertiser demonstrates the highest CTR (click-through rate) as time progresses, and then optimizes the ad serve, showing that ad more often than other ads in the same Ad Group/Ad Order. Source: SEMPO

The reorder of staple merchandise on the basis of predetermined minimum stock and specified reorder quantities without the intervention of the buyer except for periodic revision of items to be carried and the minimum and reorder quantities. This can be handled manually by reorder clerks or automatically by computer methods.

A system for ordering staple merchandise when a predetermined minimum quantity of goods in stock is reached. An automatic reorder can be generated by a computer on the basis of a perpetual inventory system and reorder point calculations.

The retail sale of goods or services through coin- or currency-operated machines activated by the ultimate consumer-buyer.

This act mandates the display of various kinds of information on every new automobile including the suggested price of the car and of all optional equipment, and transportation costs.

A pattern of decision making within a family in which an equal number of decisions are made individually by each spouse.

Avatars are 2- or 3-D customized computer representations of people are also referred to as "icons" or "buddy icons" when used on Instant Messenger. Second Life, social communities or other online virtual communities.

Total cost, i.e., the sum of fixed costs and variable costs at a given level of output, divided by the number of units.

The total fixed cost divided by the number of units produced and sold.

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The average number of pages on a site that visitors view during a single session. Source: Lazworld

The average revenue value of each click, calculated as total revenue divided by total clicks. Source: Lazworld

1. (economic definition) The total revenue divided by the number of units marketed. 2. pricing definition) The total revenue divided by the number of units sold.

The total cost divided by the number of units produced and sold.

The total variable cost divided by the number of units produced and sold.

A practice of adding a "fair" or "reasonable" markup to the average cost of a product.

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(See also brand awareness, adoption process, AIDA, awareness-trial-repeat, hierarchy of effects model.)

A paradigm consisting of three key steps by the intended user. The steps take the person or firm from a state of ignorance about a new product to the point of product adoption. Awareness (cognition) may be of the product generally, its brand, and one or more of its attributes. Trial means some form of test purchase or use, following upon favorable affect stemming from knowledge regarding the attributes. Repeat means the trial was sufficiently successful to warrant one or more repeat purchases. There are other, similar, paradigms (for example attention, interest, desire, action) but these are not new product specific and do not cover the entire product adoption process.