This section features key phrases and terms that will give the readER insight into marketing and advertising terms.
A – B thru C – D thru F – G thru J – K thru M – N thru P – Q thru S – T thru Z
A/B Testing – 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
Abandonment – 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.
ABC – Audit Bureau of Circulations
ABC Analysis – An approach for classifying accounts based on their attractiveness. A accounts are the most attractive while C accounts are the least attractive.
ABC Inventory Classification – 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.
Above the Fold – 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.
Absolute URL’s Link – Absolute URLs use the full-path address, such as http://www.domain.com/page1.htm. Source: SEMPO
Accelerated Purchase – A sales promotion goal achieved when consumers or channel members purchase the product before the time they would have normally bought.
Acceptable Price Range – This includes those prices that buyers are willing to pay for goods or services.
Account Executive – 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.
Account Group – 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.
Account Opener – 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.
Acculturation – 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.
Accumulation – A sorting process that brings similar stocks from a number of sources together into a larger homogeneous supply.
Acquisition Value – 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.
Activity Based Costing – 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.
activity goal, sales – The behavioral objective for salespeople, such as the number of calls made or number of displays set up in a day.
Activity Quota – 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.
Actual Value – The customer’s current and future value if the current level of business is maintained over time. This dimension of value includes revenue, but also elements such as how engaged the customer is in the business, communications and referrals.
Ad – The name used to indicate an advertising message in the print media.
Ad Blocking – 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.
Ad Clicks – Number of times users click on an ad banner. Source: Lazworld
Ad Copy – 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
Ad Groups – A group of ads within a Campaign. Source: Lazworld
Ad Scheduling – 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
Ad Title – The first line of text displayed in a clickable search or context-served ad. Ad Titles serve as ad headlines. Source: SEMPO
Ad Views (Impressions) – 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
Adaptation – The process of adjusting to environmental stimuli such that the stimuli become less noticed.
Adaptive Product – 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.
Adaptive Selling – 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.
AD Budget – 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).
Add-on – In charge accounts, the purchasing of additional merchandise without paying in full for previous purchases, especially in installment-credit plan selling.
Administered Vertical Marketing System – 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.
Administrative Control – 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.
Advance Order – 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.
Advertised Brand – 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.
Advertisement – Any announcement or persuasive message placed in the mass media in paid or donated time or space by an identified individual, company, or organization.
Advertiser – The company, organization, or individual who pays for advertising space or time to present an announcement or persuasive message to the public.
Advertising – 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.
Advertising Agency – 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.
Advertising Allowance – 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.
Advertising Budget – 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.
Advertising Campaign – 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.
Advertising Claim – 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.
Advertising Contract – 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.
Advertising Copy – The verbal or written component of advertising messages.
Advertising Council – 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.
Advertising Effectiveness – 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.
Advertising Idea – 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.
Advertising Manager – 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.
Advertising Media – 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.
Advertising Message – 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.
advertising models – 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.
Advertising Network – 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.
Advertising Objective – 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.
Advertising Penetration – The percentage of the target market that remembers a significant portion of the advertising message conveyed by an advertised campaign.
Advertising Strategy – 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.
Advertising Substantiation – 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.
Advertising Wear-out – The occurrence of consumers becoming so used to an ad that they stop paying attention to it.
Advertising, Regulation of – 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.
Advertising/display Allowance – 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.
Advisor – 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).
marketing mix models
Advocacy Advertising – 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.
institutional advertising affect:
a) (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. b) (consumer behavior definition) – The effective responses include states such as emotions, specific feelings, and moods that vary in level of intensity and arousal.
Affiliate Fraud – 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.
Affiliate Marketing – 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.
Affiliate Merchant – The advertiser in an affiliate marketing relationship.
Affiliate Network – 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.
Affiliate Marketing –
Affiliated store – 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.
Affinities – 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.
After-Market – The potential future sales generated by owners of equipment for repair and replacement parts.
Agency Cost – The dollar reduction in welfare experienced by the principal due to the inherent nature of the agency relationship with management.
Agency of Record (AOR) – An advertising agency assigned specific media buying responsibilities by a client.
Agency Theory – 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.
Agent – 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.
Agents and Brokers – 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.
Aggregate Data – Data that is rolled up from a smaller unit to show summary data.
Aggregation – 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.
aging – 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.
AIDA – 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.
aisle table – A table in a major store aisle, between departments, used to feature special promotional values.
Algorithm – 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
Alliance – 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.
Alliances – 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.
All-Purpose Revolving Account – 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.
All-You-Can-Afford Budgeting – 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.
ALT Text – HTML coding that provides an alternative text message when a non-textual elements such as in image fails to display properly.
Alta Vista – A popular search engine. One of the first search engines originally owned by Digital now owned by Yahoo. Source: Lazworld
Ambush Marketing – 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
Analog Approach – 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.
Analytic Hierarchy Process (AHP) – 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.
marketing mix models
Anchor – The reference price or reference product in consumers’ comparisons.
Anchor Text – It refers to the visible, clickable text for a hyperlink. Source: Lazworld
Anchoring Effect – 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.
Ancillary Service – 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.
Animated GIF – 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).
Annual Growth – 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.
Anti-Merger Act (1950) – 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.
Antitrust Laws – 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.
Apache – 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
API – Acronym for Application Programming Interface. This is a program that advertisers create to manage their SEM campaigns, bypassing the search engines’ interfaces. Source: SEMPO
Applet – An application program written in Java which allows viewing of simple animation on web pages. Source: Lazworld
Application Service Provider (ASP) – 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.
Approach, Sales – 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.
Approval Sale – A sale subject to later approval or selection, the customer having unlimited return privileges.
Approved Vendor List – A list of suppliers with whom purchasing agents are allowed to close contracts.
Arbitrage – 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.
Arbitrage Pricing Theory (APT) – 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.
arcade shopping center – An enclosed shopping area with a number of stores in lanes under archways and with
area of dominant influence (ADI) – 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.
Area Sampling – 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.
ARPA (Advanced Research Project Agency) – The U.S. Department of Defense agency that, in conjunction with leading universities, created ARPAnet, the precursor of the Internet. Source: Lazworld
arrival of goods (AOG) – 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.
Art Director – A person possessing good taste who is skilled in the visualization of advertising ideas.
Artificial Intelligence (AI) – 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
Arts Marketing – Promotional strategy linking a company to the visual or performing arts (sponsorship of a symphony concert series, museum exhibit, etc.). Source: IEG
Artwork – 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.
Assessor – 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).
Assortment – 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.
Attention – 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.
Attitude – 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.
Attraction Model – 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).
Attribution Theory – 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.
Audience – The number and/or characteristics of the persons or households who are exposed to a particular type of advertising media or media vehicle.
Audience Accumulation – 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.
Audience Duplication – 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.
Audimeter – 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.
Audio Mention – The verbal mention of a sponsor on-site or during a TV or radio broadcast or Web cast. Source: IEG
Audit Bureau of Circulations (ABC) – An organization sponsored by advertisers, advertising agencies, and print media publishers that verifies the audience circulation figures claimed by newspapers and magazines.
Audited Sales – 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.
Auditor – Third-party company that tracks, counts, and verifies ad-banner requests or verifies a Web site’s ad reporting system. Source: Lazworld
Augmented Product – 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.
Authorized Dealer – 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.
Automatic Optimization – 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
Autonomic Decision Making – A pattern of decision making within a family in which an equal number of decisions are made individually by each spouse.
Avatar – 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.
Average Cost Per Unit – Total cost, i.e., the sum of fixed costs and variable costs at a given level of output, divided by the number of units.
Average Fixed Cost – The total fixed cost divided by the number of units produced and sold.
Average Page Depth – The average number of pages on a site that visitors view during a single session. Source: Lazworld
Average Response Value – The average revenue value of each click, calculated as total revenue divided by total clicks. Source: Lazworld
Average Revenue (AR) – 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.
Average Total Cost – The total cost divided by the number of units produced and sold.
Average Variable Cost – The total variable cost divided by the number of units produced and sold.
Average-Cost Pricing – A practice of adding a “fair” or “reasonable” markup to the average cost of a product.