Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e
Back Matter Glossary © The McGraw−Hill
Companies, 2002Glossary G-9Purchase discountA reduction of the original invoice
amount for some business reason.
Purchasing managersBuying specialists for their employers.
Purchasing specificationsA written (or electronic) descrip-
tion of what the firm wants to buy.
Pure competitionA market situation that develops when a
market has (1) homogeneous (similar) products, (2) many buyers
and sellers who have full knowledge of the market, and (3) ease
of entry for buyers and sellers.
Pure subsistence economyEach family unit produces
everything it consumes.
Push money (or prize money) allowancesAllowances
(sometimes called PMs or spiffs) given to retailers by manufac-
turers or wholesalers to pass on to the retailers’ salesclerks for
aggressively selling certain items.
PushingUsing normal promotion effort—personal selling,
advertising, and sales promotion—to help sell the whole market-
ing mix to possible channel members.
Qualifying dimensionsThe dimensions that are relevant to
including a customer type in a product-market.
Qualitative researchSeeks in-depth, open-ended responses,
not yes or no answers.
QualityA product’s ability to satisfy a customer’s needs or
requirements.
Quantitative researchSeeks structured responses that can be
summarized in numbers—like percentages, averages, or other
statistics.
Quantity discountsDiscounts offered to encourage customers
to buy in larger amounts.
QuotasThe specific quantities of products that can move in or
out of a country.
Rack jobbersMerchant wholesalers who specialize in hard-to-
handle assortments of products that a retailer doesn’t want to
manage—and they often display the products on their own wire
racks.
Random samplingEach member of the research population
has the samechance of being included in the sample.
Raw materialsUnprocessed expense items—such as logs, iron
ore, wheat, and cotton—that are moved to the next production
process with little handling.
RebatesRefunds to consumers after a purchase.
ReceiverThe target of a message in the communication
process, usually a potential customer.
ReciprocityTrading sales for sales—that is, “if you buy from
me, I’ll buy from you.”
Reference groupThe people to whom an individual looks
when forming attitudes about a particular topic.
Reference priceThe price a consumer expects to pay.
Regrouping activitiesAdjusting the quantities and/or assort-
ments of products handled at each level in a channel of distribution.
Regularly unsought productsProducts that stay unsought
but not unbought forever.
ReinforcementOccurs in the learning process when the con-
sumer’s response is followed by satisfaction—that is, reduction in
the drive.Reminder advertisingAdvertising to keep the product’s name
before the public.
RequisitionA request to buy something.
Research proposalA plan that specifies what marketing
research information will be obtained and how.
Resident buyersIndependent buying agents who work in cen-
tral markets for several retailer or wholesaler customers based in
outlying areas or other countries.
ResponseAn effort to satisfy a drive.
Response rateThe percent of people contacted in a research
sample who complete the questionnaire.
RetailingAll of the activities involved in the sale of products
to final consumers.
ReturnWhen a customer sends back purchased products.
Return on assets (ROA)The ratio of net profit (after taxes)
to the assets used to make the net profit—multiplied by 100 to
get rid of decimals.
Return on investment (ROI)Ratio of net profit (after taxes)
to the investment used to make the net profit—multiplied by
100 to get rid of decimals.
Reverse channelsChannels used to retrieve products that
customers no longer want.
Risk takingBearing the uncertainties that are part of the mar-
keting process.
Robinson-Patman ActA 1936 law that makes illegal any
price discrimination if it injures competition.
Routinized response behaviorWhen consumers regularly
select a particular way of satisfying a need when it occurs.
Rule for maximizing profitThe highest profit is earned at the
price where marginal cost is just less than or equal to marginal
revenue.
Safety needsNeeds concerned with protection and physical
well-being.
Sale priceA temporary discount from the list price.
Sales analysisA detailed breakdown of a company’s sales records.
Sales declineA stage of the product life cycle when new prod-
ucts replace the old.
Sales eraA time when a company emphasizes selling because
of increased competition.
Sales forecastAn estimate of how much an industry or firm
hopes to sell to a market segment.
Sales managersManagers concerned with managing personal
selling.
Sales-oriented objectiveAn objective to get some level of
unit sales, dollar sales, or share of market—without referring to
profit.
Sales presentationA salesperson’s effort to make a sale or
address a customer’s problem.
Sales promotionThose promotion activities—other than
advertising, publicity, and personal selling—that stimulate inter-
est, trial, or purchase by final customers or others in the channel.
Sales promotion managersManagers of their company’s
sales promotion effort.
Sales quotaThe specific sales or profit objective a salesperson
is expected to achieve.