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