Rich Brown Marketing 2400 Test 2

Trade Facilitation Agreement (TFA)

A World Trade Organization agreement that aims to cut customs-related red tape and ease the flow of trade between countries

Foreign direct investment

A business investment in a foreign country, either by establishing business operations or by acquiring business assets in that country

Multinational corporation

A company that is heavily engaged in international trade, beyond exporting and importing

Purchasing Power

A comparison of income versus the relative cost of a standard set of goods and services in different geographic areas

Motive

A driving force that causes a person to take action to satisfy specific needs

Food and Drug Administration (FDA)

A federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products

Federal Trade Commission (FTC)

A federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce.

Consumer Product Safety Commission (CPSC)

A federal agency established to protect the health and safety of consumers in and around their homes

Consumer Decision-making process

A five-step process used by consumers when buying goods or services

Stimulus Generalization

A form of learning that occurs when one response is extended to a second stimulus similar to the first

Countertrade

A form of trade in which all or part of the payment for goods or services is in the form of other goods or services

Group of Twenty

A forum for international economic development that promotes discussion between industrial and emerging-market countries on key issues related to global economic stability

European Union (EU)

A free trade zone encompassing 28 European countries

Evoked set (consideration set)

A group of brands resulting from an information search from which a buyer can choose

Social class

A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms

Target Market

A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges

Aspirational Reference Group

A group that someone would like to join

Nonaspirational reference group

A group with which an individual does not want to associate

Subculture

A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group

Stimulus Discrimination

A learned ability to differentiate among similar products

Inflation

A measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year

Maslow's hierarchy of needs

A method of classifying human needs and motivations into five categories in ascending order of importance: physiological, safety, social, esteem, and self-actualization

Recession

A period of economic activity characterized by negative growth, which reduces demand for goods and services

Value

A personal assessment of the net worth one obtains from making a purchase, or the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct

Connected self-schema

A perspective whereby a consumer sees himself or herself as an integral part of a group

Separated self-schema

A perspective whereby a consumer sees himself or herself as distinct and separate from others

Learning

A process that creates changes in behavior, immediate or expected, through experience and practice

Selective distortion

A process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs

Selective exposure

A process whereby a consumer notices certain stimuli and ignores others

Selective retention

A process whereby a consumer remembers only that information that supports his or her personal beliefs

Nonmarketing-controlled information source

A product information source that is not associated with advertising or promotion

Marketing-controlled information source

A product information source that originates with marketers promoting the product

Secondary membership group

A reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group

Primary membership group

A reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, and coworkers

Floating exchange rates

A system in which prices of different currencies move up and down based on the demand for and the supply of each currency

General Agreement on Tariffs and Trade (GATT)

A trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements

Uruguay Round

A trade agreement to dramatically lower trade barriers worldwide; created the World Trade organization

World Trade Organization (WTO)

A trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)

Utilitarian Value

A value derived from a product or service that helps the consumer solve problems and accomplish tasks

Norm

A value or attitude deemed acceptable by a group

Hedonic Value

A value that acts as an end in itself rather than as a means to an end

Personality

A way of organizing and grouping the consistencies of an individual's reactions to situations

Reference Group

All of the formal and informal groups in society that influence an individual's purchasing behavior

North American Free Trade Agreement (NAFTA)

An agreement between Canada, USA, and Mexico that created the world's then-largest free trade zone

Opinion leader

An individual who influences the opinions of others

Buyer for export

An intermediary in the global market that assumes all ownership risks and sells globally for its own account

Export Agent

An intermediary who acts like a manufacturer's agent for the exporter; the export agent lives in the foreign market

Export broker

An intermediary who plays the traditional broker's role by bringing buyer and seller together

World Bank

An international bank that offers low-interest loans, advice, and information to developing nations

International Monetary Fund (IMF)

An international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation

Stimulus

Any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing

Self-concept

How consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations

Socialization process

How cultural values and norms are passed down to children

Cognitive dissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions

Global marketing

Marketing that targets markets throughout the world

Baby boomers

People born b/w 1946-1964

Generation X

People born b/w 1965-1978

Millennials

People born b/w 1979-1994

Generation Z

People born b/w 1995-2010

Consumer Behavior

Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use

Global Marketing Standardization

Production of uniform products that can be sold the same way all over the world

Contract manufacturing

Provate label manufacturing by a foreign company

Basic research

Pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon

Want

Recognition of an unfulfilled need and a product that will satisfy it

Global Vision

Recognizing and reacting to international marketing opportunities, using effective global marketing strategies and being aware of threats from foreign competitors in all markets

Applied Research

Research that attempts to develop new or improved products

Need Recognition

Result of an imbalance between actual and desired states

Inshoring

Returning production jobs to the US

Exporting

Selling domestically produced products to buyers in other countries

Outsourcing

Sending US jobs abroad

Involement

The amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior

Balance of payments

The difference between a country's total payments to other countries and its total receipts from other countries

Balance of trade

The difference between the value of a country's exports and the value of its imports over a given period

Mercosur

The largest Latin American trade agreement

Licensing

The legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge

Extensive decision making

The most complex type of consumer decision making, used when buying an unfamiliar expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information

Component lifestyles

The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle

Showrooming

The practice of examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal on the same item

Exchange Rate

The price of one country's currency in terms of another country's currency

Perception

The process by which people select, organdize, and interpret stimuli into a meaningful and coherent picture

Internal Information Search

The process of recalling past information stored in the memory

External information Search

The process of seeking information in the outside environment

Dumping

The sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter

Culture

The set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next

Demography

The study of people's vital statistics, such as age, race and ethnicity, and location

Gross Domestic Product (GDP)

The total market value of all final goods and services produced in a country for a given time period

Routine Response Behavior

The type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time

Limited decision making

The type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category

Perceived Value

The value a consumer expects to obtain from a purchase

Real self-image

The way an individual actually perceives himself or herself

Ideal self-image

The way an individual would like to be perceived

Capital Intensive

Using more capital than labor in the production process

Joint Venture

When a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity

Multidomestic Strategy

When multinational firms enable individual subsidiaries to compete independently in domestic markets