Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e
Back Matter Glossary © The McGraw−Hill
Companies, 2002Glossary G-3Corrective advertisingAds to correct deceptive advertising.
Cost of salesTotal value (at cost) of the sales during the
period.
CountertradeA special type of bartering in which products
from one country are traded for products from another country.
CuesProducts, signs, ads, and other stimuli in the
environment.
Cultural and social environmentAffects how and why peo-
ple live and behave as they do.
CultureThe whole set of beliefs, attitudes, and ways of doing
things of a reasonably homogeneous set of people.
Cumulative quantity discountsReductions in price for larger
purchases over a given period, such as a year.
Customer relationship management (CRM)An approach
where the seller fine-tunes the marketing effort with information
from a detailed customer database.
Customer satisfactionThe extent to which a firm fulfills a
consumer’s needs, desires, and expectations.
Customer service levelHow rapidly and dependably a firm
can deliver what customers want.
Customer valueThe difference between the benefits a cus-
tomer sees from a market offering and the costs of obtaining
those benefits.
Data warehouseA place where databases are stored so that
they are available when needed.
Dealer brandsBrands created by middlemen—sometimes
referred to as private brands.
Debt financingBorrowing money based on a promise to repay
the loan, usually within a fixed time period and with a specific
interest charge.
Decision support system (DSS)A computer program that
makes it easy for marketing managers to get and use information
as they are making decisions.
DecodingThe receiver in the communication process translat-
ing the message.
Demand-backward pricingSetting an acceptable final con-
sumer price and working backward to what a producer can
charge.
Demand curveA graph of the relationship between price and
quantity demanded in a market—assuming all other things stay
the same.
Department storesLarger stores that are organized into many
separate departments and offer many product lines.
Derived demandDemand for business products derives from
the demand for final consumer products.
Determining dimensionsThe dimensions that actually affect
the customer’s purchase of a specificproduct or brand in a product-
market.
DifferentiationThe marketing mix is distinct from and better
than what’s available from a competitor.
Direct marketingDirect communication between a seller and
an individual customer using a promotion method other than
face-to-face personal selling.
Direct type advertisingCompetitive advertising that aims for
immediate buying action.Discount housesStores that sell hard goods (cameras, TVs,
appliances) at substantial price cuts to customers who go to dis-
counter’s low-rent store, pay cash, and take care of any service or
repair problems themselves.
DiscountsReductions from list price given by a seller to buy-
ers, who either give up some marketing function or provide the
function themselves.
Discrepancy of assortmentThe difference between the lines
a typical producer makes and the assortment final consumers or
users want.
Discrepancy of quantityThe difference between the quantity
of products it is economical for a producer to make and the
quantity final users or consumers normally want.
Discretionary incomeWhat is left of disposable income after
paying for necessities.
Disposable incomeIncome that is left after taxes.
DissonanceTension caused by uncertainty about the rightness
of a decision.
Distribution centerA special kind of warehouse designed to
speed the flow of goods and avoid unnecessary storing costs.
DiversificationMoving into totally different lines of busi-
ness—perhaps entirely unfamiliar products, markets, or even
levels in the production-marketing system.
Door-to-door sellingGoing directly to the consumer’s home.
DriveA strong stimulus that encourages action to reduce a
need.
Drop-shippersWholesalers who own (take title to) the prod-
ucts they sell but do not actually handle, stock, or deliver them.
Dual distributionWhen a producer uses several competing
channels to reach the same target market—perhaps using several
middlemen in addition to selling directly.
DumpingPricing a product sold in a foreign market below the
cost of producing it or at a price lower than in its domestic
market.
Early adoptersThe second group in the adoption curve to
adopt a new product; these people are usually well respected by
their peers and often are opinion leaders.
Early majorityA group in the adoption curve that avoids risk
and waits to consider a new idea until many early adopters try it
and like it.
E-commerceExchanges between individuals or organiza-
tions—and activities that facilitate those exchanges—based on
applications of information technology.
Economic and technological environmentAffects the way
firms, and the whole economy, use resources.
Economic buyersPeople who know all the facts and logically
compare choices in terms of cost and value received—to get the
greatest satisfaction from spending their time and money.
Economic needsNeeds concerned with making the best use
of a consumer’s time and money—as the consumer judges it.
Economic systemThe way an economy organizes to use scarce
resources to produce goods and services and distribute them for
consumption by various people and groups in the society.
Economies of scaleAs a company produces larger numbers
of a particular product, the cost for each of these products
goes down.