Vocab

Tab B Vocabulary

1. Agent/Broker: An individual or firm that charges a fee or commission for performing buy and sell orders submitted by an investor

Ex: Real estate brokers or agents are hired to transact the buying and selling, lease, or rental of real property on a commission basis

2. Brand Equity: An intangible value-added aspect of a particular good derived from the goodwill and name recognition it has earned over time, which translates into higher sales volume and higher profit margins against competing brands. It is created through aggressive mass marketing campaigns

Ex: Coca-Cola, whose corporate logo is recognized worldwide

3. Brand Purchase Decision: The assumption that consumer purchase decisions are made from a variety of products that are all related to a specific brand

Ex: If a consumer prefers Nike products rather than Adida products, the consumer will purchase the Nike products even if they are more expensive due to their loyalty

4. Cannibalization: The negative impact of a company's new product on the sales performance of its existing related products

Ex: Say Coca-Cola puts out a new product called Coke2, and customers buy Coke2 instead of regular Coke. Although sales may be up for the new product, these sales may be eating into Coke's original market, in which case the overall company sales would not be increasing

5. Category Purchase Decision: The assumption that consumer purchase decisions are made from a variety of products within a category and not merely by brand

Ex: If a customer prefers BIC shavers over Neutrogena shavers, but there are no BIC shavers left. The consumer will purchase the Neutrogena shavers because they will serve the same purpose

6. Channel Promotional Strategies: Marketing plan for effectively selling and distributing products to customers

Ex:

7. Channel Intermediaries: Firm or person, such as a consultant, who acts as a mediator or a link between the producers,...