Elaboration Likelihood Model (ELM)
- A model of attitude formation and change that proposes that the process by which attitudes change depends upon the message recipient's level of motivation. According to Petty and Cacioppo, the authors of the ELM, when motivation is high, the message recipient will pay attention and respond to the quality of message arguments. When motivation is low, the message recipient will be more responsive to peripheral elements of the message (e.g., music, spokesperson attractiveness, etc.).
Engel's Law
- The observation that the proportion of income spent on food declines as income rises with given tastes or preferences. This law or tendency was formulated by Ernst Engel (1821-1896) in a paper published by him in 1857.
e-business
- A term referring to a wide variety of Internet-based business models. Typically, an e-commerce strategy incorporates various elements of the marketing mix to drive users to a Web site for the purpose of purchasing a product or service.
See also: e-commerce, online marketing,
e-commerce
- A term referring to a wide variety of Internet-based business models. Typically, an e-commerce strategy incorporates various elements of the marketing mix to drive users to a Web site for the purpose of purchasing a product or service.
See also: e-business, online marketing,
economic goods
- The goods that are so scarce relative to human wants that human effort is required to obtain them.
economic man
- A model of human behavior assumed by economists in analyzing market behavior. The economic person is a rational person who attempts to maximize the utility received from his/her monetary outflows and sacrifices.
See also: social man
economic order quantity
- The order quantity that minimizes the total costs of processing orders and holding inventory.
eighty-twenty principle
- The situation in which a disproportionately small number (e.g., 20 percent) of salespeople, territories, products, or customers generate a disproportionately large amount (e.g., 80 percent) of a firm's sales or profits. This phenomenon can be identified and addressed by conducting a sales analysis and cost analysis.
elaboration
- The degree of elaboration determines the number of meanings or beliefs formed during comprehension.
end user
- A person or organization that consumes a good or service that may consist of the input of numerous firms. For example, an insurance company may be the end user for a keyboard for a personal computer, originally produced for and sold to the personal computer manufacturer.
environment
- The complex set of physical and social stimuli in the external world of consumers.
environmental analysis
- The gathering and analyzing of data about a company's or nation's external environment to identify trends and their impact upon an organization or country. Included among the environmental forces considered are the political, cultural, social, demographic, economic, legal, international, and ecological factors.
equilibrium price
- A price that equates supply and demand, i.e., the price at which the market clears.
ethics
- This relates to moral action, conduct, motive, and character. It also means professionally right or befitting, conforming to professional standards of conduct.
ethnocentric orientation
- A home country orientation or an unconscious bias or belief that the home country approach to business is superior.
See also: geocentric orientation, polycentric orientation, regiocentrism orientation,
evoked set
- 1. (consumer behavior definition) The set of alternatives that are activated directly from memory. 2. (consumer behavior definition) The set of possible products or brands that the consumer may be considering in the decision process. It is the set of choices that has been evoked and is salient as compared with the larger number of available possible choices. For example, from the many brands of breakfast cereals on super-market shelves, it is the half a dozen brands (or so) that the buyer may re-member and be considering for purchase.
See also: competitive brands
exchange
- All activities associated with receiving something from someone by giving something voluntarily in return.
exclusive dealing
- A restriction that is imposed by a supplier on a customer forbidding the customer from purchasing some type of product from any other supplier. This restriction is subject to an examination of whether it substantially lessens competition or restrains trade. Exclusive dealing should not be con-fused with exclusive distributorships, a term applied to arrangements in which a supplier promises not to appoint more than one dealer in each territory.
exclusive distribution (channels of distribution)
- A form of market coverage in which a product is distributed through one particular wholesaler or retailer in a given market area.
See also: intensive distribution and selective distribution
exclusive distribution (retailing definition)
- The practice whereby the vendor agrees to sell the goods or services within a certain territory only through a single retailer or a limited number of retailers. It may also apply to wholesalers.
experience curve effect
- A systematic decline in the cost per unit that is achieved as the cumulative volume (and therefore experience) increases. There are three sources of the experience curve effect: (1) learning-the increasing efficiency of labor that arises chiefly from practice; (2) technological improvements including process innovations, resource mix changes, and product standardization; and (3) economies of scale-the increased efficiency due to size.
See also: experience curve analysis
experience-curve pricing
- 1. (pricing definition) A method of pricing in which the seller sets the price sufficiently low to encourage a large sales volume in anticipation that the large sales volume would lead to a reduction in average unit costs. Generally this method of pricing is used over time by periodically reducing the price to induce additional sales volumes that lead to lower per unit costs. 2. (economic definition) A price-setting method using a markup on the average total cost as forecast by cost trends over time as sales volume accumulates.
external validity
- One criterion by which an experiment is evaluated; the criterion refers to the extent, to what populations and settings, to which the observed experimental effect can be generalized.
See also: construct validation, content validity, convergent validity, discriminant validity, internal validity, pragmatic validity, validity,
Fair Packaging and Labeling Act (1966)
- This act requires that labels on consumer commodities identify the type of product being sold, the name and address of the supplier, and where applicable, the quality and contents of each serving. The act also authorizes the FTC and FDA to issue regulations concerning specific products covering items such as ingredient statements, package size standards, "slack-fill" packaging, and sales price representations.
Foreign Corrupt Practices Act (FCPA) (1977)
- 1. (legislation definition) This act made it illegal for members of any United States business firm to pay money or give gifts, or promise to do so, to any foreign official, foreign political party, or candidates for foreign political office in order to obtain or retain business. 2. (global marketing definition) The U.S. law that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.
fair trade laws
- Federal and state statutes permitting suppliers of branded goods to impose resale price maintenance contracts fixing minimum retail prices. The Consumer Goods Pricing Act of 1975 outlawed such practices.
See also: resale price maintenance laws
