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Dictionary
Whether you're looking for an obscure phrase or your basic marketing definition, the AMA
Dictionary has it all! Originating from the print version in 1995, we're always adding new terms
to keep marketers up to date in the ever-evolving marketing profession.
ABCDEFGHIJKLMNOPQRSTUVWXYZ

Term Definition See

early adopters The second identifiable subgroup within a population that be-gins use of an
innovation. They follow innovators and precede the early majority. Their role
is to be opinion leaders and have influence over the early majority.
early majority The third identifiable subgroup within a population that adopts an innovation.
They are pre-ceded by early adopters and innovators. The early majority like
to await the out-come of product trial by the two earlier groups, yet are not as
slow to adopt as the next two groups, late majority and laggards.
early markdown A markdown taken early in the season or while the demand for the
merchandise is still relatively active.
early sales-based Refer to “See Also” column to the right.
forecasting models
earned income The income resulting from work or services performed as contrasted with
income from such sources as investments or rent.
EBA model Refer to “See Also” column to the right.
ebusiness Refer to “See Also” column to the right.
e-business A term referring to a wide variety of Internet-based business models.
Typically, an e-commerce strategy incorporates various elements of the
marketing mix to drive users to a Web site for the purpose of purchasing a
product or service.
ecology The study of the relations among living species and their physical and biotic
environments, particularly adaptations to environments through the
mechanisms of various systems.
ecommerce Refer to “See Also” column to the right.
e-commerce A term referring to a wide variety of Internet-based business models.
Typically, an e-commerce strategy incorporates various elements of the
marketing mix to drive users to a Web site for the purpose of purchasing a
product or service.
econometric market Refer to “See Also” column to the right.
models
economic and Refer to “See Also” column to the right.
technological factors
economic and Refer to “See Also” column to the right.
technological position
economic concentration Refer to “See Also” column to the right.

economic concept of A term reflecting the maximum amount that can be spent by a retail store for
rent yearly rent expenses. It is calculated by subtracting from planned sales all
projected nonrent costs including a projected or planned profit figure.
economic determinism A philosophy, perspective, or belief that economic forces ultimately are
determinants of social and political change.
economic environment The economic environment encompasses such factors as productivity,
income, wealth, inflation, balance of payments, pricing, poverty, interest
rates, credit, transportation, and employment; it is the totality of the
economic surroundings that affect a company's markets and its opportunities.
economic goods The goods that are so scarce relative to human wants that human effort is
required to obtain them.
economic indicator The data collected over time that reflect economic activity and general
business conditions.
economic infrastructure The internal facilities of a country available for con-ducting business
activities, especially the communication, transportation, distribution, and
financial systems.
economic integration Refer to “See Also” column to the right.
economic man A model of human behavior assumed by economists in analyzing market
behavior. The economic person is a rational person who attempts to
maximize the utility received from his/her monetary outflows and sacrifices.
economic order The order quantity that minimizes the total costs of processing orders and
quantity holding inventory.
economic organization The way in which the means of production and distribution of goods are
organized, such as capitalism or socialism.
economic shoppers The shoppers who try to maximize the ratio of total utility and dollars of
expenditure.
economic stage of the Refer to “See Also” column to the right.
fashion cycle
economic status Refer to “See Also” column to the right.
economic union Refer to “See Also” column to the right.
economic well-being Refer to “See Also” column to the right.
economics 1. The science that deals with human wants and satisfaction. 2. The science
that deals with a person's efforts to satisfy his/her wants through the use of
the scarce resources of nature.
economies of scale The savings derived from producing a large number of units-e.g., in a
(economic definition) situation in which all inputs are doubled, output may be more than doubled.
economies of scale The de-cline in per unit product costs as the absolute volume of production
(global marketing per period increases.
definition)
economy pack A merchandising phrase pointing out savings by including several products
as one item in one wrap-ping.
ecosystem The complex of interactions of all the organisms with their environments and
with each other. Technically, it is a subunit of the biosphere or a unit of a
landscape. The interactions of members of a distribution channel, or the
interaction of a company and its products with consumer environments are
examples of marketing applications.
ECOWAS Economic Community of West African States
eCPM Acronym for Effective Cost per Thousand, a hybrid Cost-per-Click (CPC)
auction calculated by multiplying the CPC times the click-through rate
(CTR), and multiplying that by one thousand. (Represented by: (CPC x CTR)
x 1000 = eCPM.) This monetization model is used by Google to rank site-
targeted CPM ads (in the Google content network) against keyword-targeted
CPC ads (Google AdWords PPC) in their hybrid auction. Source: SEMPO
ECU Refer to “See Also” column to the right.
EDI Refer to “See Also” column to the right.
editing The inspection and correction, if necessary, of each questionnaire or
observation form.
Editorial Coverage Exposure that is generated by media coverage of the sponsored property that
includes mention of the sponsor. Source: IEG
Editorial Review A review process for potential advertiser listings conducted by search
Process engines, which check to ensure relevancy and compliance with the engine’s
editorial policy. This process could be automated – using a spider to crawl
ads – or it could be human editorial ad review. Sometimes it’s a combination
of both. Not all PPC Search Engines review listings. Source: SEMPO
EDLP Refer to “See Also” column to the right.
EEC European Economic Community
effective frequency An advertiser's de-termination of the optimum number of exposure
opportunities required to effectively convey the advertising message to the
desired audience or target market.
efficient market In its so--called "semi-strong" form, this hypothesis states that in setting
hypothesis security prices at any time, the market correctly uses all publicly available
information about the underlying corporations whose stocks are traded in the
market. In the absence of inside information, this implies that investors
cannot consistently achieve performance in excess of the market "average"
for any given level of risk. The "semi-strong" hypothesis enjoys wide
acceptance in financial economics.
EFTA Refer to “See Also” column to the right.
ego According to Freudian Theory, the ego is one prong of the three parts of the
personality. The ego is the executive, or the planner, compromising between
the demands for immediate gratification of the id and the pristine rigidity of
the superego (conscience or moral self).
ego defenses The tools the ego has avail-able to defend the individual from psychological
stresses such as the forces of the id (libido) and the superego. Ego defenses
are psychological constructs such as identification, rationalization, reaction
formation, repression, sublimation, etc.
ego defensive drives Refer to “See Also” column to the right.
ego-defensive function The protection of the individual self pro-vided by attitudes. The ego-
of attitudes defensive function protects the individual from threats by concealing the
"true" self and any socially undesirable feelings and wants. It is one of the
functions of attitudes proposed by the functional theory of attitudes.

eighty-twenty principle The situation in which a disproportionately small number (e.g., 20 percent) of
salespeople, territories, products, or customers generate a disproportionately
large amount (e.g., 80 percent) of a firm's sales or profits. This phenomenon
can be identified and addressed by conducting a sales analysis and cost
analysis.
elaboration The degree of elaboration determines the number of meanings or beliefs
formed during comprehension.
Elaboration Likelihood A model of attitude formation and change that proposes that the process by
Model (ELM) which attitudes change depends upon the message recipient's level of
motivation. According to Petty and Cacioppo, the authors of the ELM, when
motivation is high, the message recipient will pay attention and respond to
the quality of message arguments. When motivation is low, the message
recipient will be more responsive to peripheral elements of the message (e.g.,
 music, spokesperson attractiveness, etc.).
elastic demand 1. A situation in which a cut in price increases the quantity taken in the
market enough that total revenue is increased. 2. A situation in which a given
change in the price of an economic good is associated with a more than
proportionate change in the quantity that buyers would purchase. 3. A
situation in which the percentage of quantity taken "stretches" more than the
percentage drop in price.
elastic supply 1. A situation in which a percentage increase in price attracts a greater
percentage of' products offered to the market. 2. A situation in which the
percentage of goods offered "stretches" more than the percentage increase in
price.
elasticity The degree that an economic variable changes in response to a change in
another economic variable.
elasticity coefficient 1. A measure of the responsiveness of the quantity of a product taken in the
market to price changes. 2. (technical definition) E is the limit as the change
in price tends to zero of a ratio composed of two ratios: the change in
quantity/quantity, divided by change in price/price. E is al-ways negative: if
the absolute value of E is greater than one, demand is said to be elastic; if
exactly equal to one, unitary price elasticity prevails; if less than one, demand
is said to be inelastic.
elasticity of demand Refer to “See Also” column to the right.
elasticity of expectation A measure of the changes in prices of goods and changes in the quantity
taken by the market stemming from expectations by consumers.
elasticon A conjoint analysis-based model for estimating self- and cross-price
elasticity. Subjects are asked to indicate their likelihood of buying each brand
(when each brand is priced at some experimental level). A first order Markov
model represents the price--induced brand switching. The price--demand
model is fitted by generalized least-squares to the share of choices (Mahajan,
Green, and Goldberg 1982).
electronic data 1. (physical distribution definition) The intercompany, application-to-
interchange (EDI) application exchange of business transactions in a standard data format. 2.
(retailing definition) The interfirm computer-to-computer transfer of
information, as between or among retailers, wholesalers, and manufacturers.
Electronic Data The basic electronic data interchange format utilized globally or
Interchange for internationally for communication transmissions.
Administration, Co
electronic funds transfer The use of electronic means, such as computers, telephones, magnetic tape
and so on, rather than checks, to transfer funds, or to authorize or complete a
transaction. This development has given rise to the concept of the cashless
 economy.
Elimination-By-Aspects A brand choice model that represents the ultimate selection decision as a
(EBA) model series of eliminations. Each alternative available for choice is viewed as
having some set of aspects (e.g., product features). At each stage of the
choice process an aspect is selected (with probability proportional to that
aspect's importance for this consumer), and all alternatives still being
considered that do not possess the selected aspect are eliminated. The process
continues until only one alternative remains, and that remaining item is
assumed to be the one chosen by the consumer (Tversky 1972). Although
more difficult to calibrate and apply than Luce's Choice Axiom model for
choices, it does avoid the independence from irrelevant alter-natives property
of the latter model, which is often seen as an appealing feature of the EBA
model. It has led to the development of other hierarchical/ sequential choice
models, including the Hierarchical Elimination Model (Tversky and Sattath
1979) and Generalized Elimination Model (Hauser 1986).
ELM Refer to “See Also” column to the right.
email (See also e-mail.)
e-mail (email) A communication format that involves sending computer-based messages
over telecommunication technology. E-mail can include a letter-style text
message or more elaborate Web-style HTML messages. Users can also attach
other files to the e-mail and transmit all elements simultaneously.
e-mail marketing (email Marketing via email.
marketing)
embargo The prohibition of shipment of goods or services to designated countries.
Emblem A graphic symbol unique to a property. Source: IEG
EMC Refer to “See Also” column to the right.
emergency product A good (such as a portable generator) or a service (such as ambulance
delivery) in which an essentially nondeliberative purchase decision is based
on critical and timely need.

emotional appeals Refer to “See Also” column to the right.

emotionally neutral Refer to “See Also” column to the right.
Emotions Refer to "See Also" column to the right.
employee discount A certain discount from retail price offered by most general merchandise
retailers to employees. It is a kind of retail reduction from the point of view
 of accounting. Usually stores grant a larger percentage on personal wearing
apparel than on gifts purchased by the employee.
empty nest stage Refer to “See Also” column to the right.
emulation stage of the Refer to “See Also” column to the right.
fashion cycle
emulative product A new product that imitates another product already on the market. It is
somewhat different from previous products (not a pure "me-too" product),
but the difference is not substantial or significant.
end of month dating The cash discount and the net credit periods be-gin on the first day of the
(EOM) following month rather than on the invoice date. EOM terms are frequently
stated in this manner: "2/10, net 20, EOM." Sup-pose an order is filled and
shipped on June 16 under these terms. In such a case, the cash discount may
be taken any time through July 10 and the net amount is due on July 30.

end sizes Those sizes that are usually large, small, or extraordinary in some respect.
end user A person or organization that consumes a good or service that may consist of
the input of numerous firms. For example, an insurance company may be the
end user for a keyboard for a personal computer, originally produced for and
sold to the personal computer manufacturer.
end-aisle display An exhibit of a product set up at the end of the aisle in a retail store to call
attention to a special offering or price.
endless chain method A method of prospecting in which a salesperson asks customers to suggest
other customers who might be interested in the salesperson's offerings.

enduring involvement The general, personal relevance of a product or activity.

Engel's Law The observation that the proportion of income spent on food de-clines as
income rises with given tastes or preferences. This law or tendency was
formulated by Ernst Engel (1821-1896) in a paper published by him in 1857.
entering new segments Refer to “See Also” column to the right.
enterprise group Refer to “See Also” column to the right.
Entry Page Refers to any page within a web site that a user employs to "enter" your web
site. Source: SEMPO
environment The complex set of physical and social stimuli in the external world of
consumers.
environmental analysis The gathering and analyzing of data about a company's or nation's external
environment to identify trends and their impact upon an organization or
country. Included among the environmental forces considered are the
political, cultural, social, demographic, economic, legal, international, and
ecological factors.
environmental factors Refer to “See Also” column to the right.
environmental impact The assessment of the impact of a strategy or decision on the environment,
analysis especially the ecological consequences of the strategy or decision.
environmental The activities aimed at keeping track of changes in external factors that are
monitoring likely to affect the markets and demand for a firm's products and services.
Among the external factors usually considered are the economic, social,
demographic, political, legal, cultural, and technological forces.
environmental motives Refer to “See Also” column to the right.
Environmental A federal agency formed in 1970 that regulates the amount of pollutants
Protection Agency manufacturers can emit.
(EPA)
environmental scanning Refer to “See Also” column to the right.
environmental stimulus Refer to “See Also” column to the right.
environmentalism 1. (legislation definition) This refers to public concern over protecting,
enhancing, and improving the environment, which includes conserving
natural resources, eliminating pollution and hazardous substances, historic
preservation, and preventing the extinction of plant and animal species. 2.
(environments definition) That part of consumerism that concentrates on
ecology is-sues such as air, water, and noise pollution and the depletion of
natural resources. Marketing decisions and action, such as new product
offerings, can impact directly on physical environments.
EOM dating Refer to “See Also” column to the right.
EPA Refer to “See Also” column to the right.
episodic knowledge The mental representations of the specific events in a per-son's life.
Equal Credit This act prohibits discrimination by a creditor against any applicant for credit
Opportunity Act (1974) on the basis of sex or marital status.
equal time Section 315 of the Federal Communication Commission Act pro-vides that if
 a broadcaster permits a legally qualified candidate for any public office to
use a broadcasting station, he shall afford equal opportunity to use the
broadcasting station to all other candidates for that office.
equalized workload A method of determining sales force size that is based on the premise that all
method sales personnel should have an equal amount of work. The method requires
that management estimate the work required to serve the entire market. The
total work calculation is typically treated as a function of the number of
accounts, the frequency with which each account should be called on, and the
length of time that should be spent on each call. This estimate is then divided
by the amount of work an individual salesperson should be able to handle to
determine the total number of salespeople required.
equilibrium point A situation in which the quantity and price offered by sellers equals the
quantity and price taken by buyers.
equilibrium price A price that equates supply and demand, i.e., the price at which the market
clears.
equipment The durable goods used to support manufacturing, logistics, administrative,
and other business processes. The definition includes fixed equipment such
as generators and drill presses, light factory equipment such as hand tools
and lift trucks, and office equipment such as typewriters and desks.
equivalence A measure of reliability that is applied to both single instruments and
measurement situations. When applied to instruments, the equivalence
measure of reliability is the internal consistency or internal homogeneity of
the set of items forming the scale; when applied to measurement situations,
the equivalence measure of reliability focuses on whether different observers
or different instruments used to measure the same individuals or objects at
the same point in time yield consistent results.
erratic demand A pattern of demand for a product that is varied and unpredictable - e.g., the
demand for large automobiles.
Escalator An annual percentage increase built into the sponsorship fee for multi-year
contracts. Escalators are typically tied to inflation. Source: IEG
establishment stage Refer to “See Also” column to the right.
esteem needs Refer to “See Also” column to the right.

ethics This relates to moral action, con-duct, motive, and character. It also means
professionally right or befitting, conforming to professional standards of
conduct.
ethnocentric orientation A home country orientation or an unconscious bias or belief that the home
country approach to business is superior.
ethnocentric pricing Refer to “See Also” column to the right.
policy
ethnography A detailed, descriptive study of a group and its behavior, characteristics,
culture, etc.
eurocurrency A national currency de-posited outside the country of denomination: for
example, U. S. dollars deposited in a foreign bank.
eurodollars U.S. dollar deposits held in banks outside the United States.
European Community An association of European countries, viz. Germany, France, Italy, Belgium,
Luxembourg, the Netherlands, the United Kingdom, Ireland, and Denmark,
with uniform trade rules built upon the elimination of internal tariff barriers
and the establishment of common external barriers. Its goal is to integrate
and harmonize the economic, social, and political life of members. On the
economic front, the goal is the elimination of all barriers and restrictions on
the movement of goods and services.
European Currency A weighted average currency unit created by weighting the current exchange
Unit (ECU) rate of the twelve European Community member country currencies based on
country GNP and trade. The ECU is a unit of value that fluctuates less than
individual European Community currencies because it is a weighted average.
European Free Trade An association established by the Stockholm Convention of 1959, with
Association (EFTA) member countries being Austria, Finland (associate member), Iceland,
Norway, Portugal, Sweden, and Switzerland. EFTA's objective is to bring
about free trade in industrial goods and an expansion of trade in agricultural
goods.
evaluation Refer to “See Also” column to the right.

evaluation and control Refer to “See Also” column to the right.

of sales force
performance
evaluation of alternative Formal supplier evaluation is the rating of alternative suppliers on preset
suppliers, in organizati criteria in order to evaluate their technical, financial, and managerial abilities.
It is a way to substitute facts for feelings in selecting suppliers.
evaluation rule Refer to “See Also” column to the right.

even price Refer to “See Also” column to the right.

event creation The use of communication techniques such as news releases, press
 conferences, etc., to call attention to activities to promote a company,
product, or service. Also, it is the development of a special activity, showing,
display, or exhibit designed to demonstrate products or to connect the
product to favorable products or activities.
Event Marketing Promotional strategy linking a company to an event (sponsorship of a sports
competition, festival, etc.). Often used as a synonym for “sponsorship.” The
latter term is preferable, however, because not all sponsorships involve an
event, per se. Source: IEG
evergreen Refer to “See Also” column to the right.
everyday low price 1. (retailing definition) A policy or strategy of retail pricing whereby
(EDLP) presumably low prices are set initially on items and maintained, as opposed
to the occasional offering of items at special or reduced sales prices. 2. (sales
promotion definition) A pricing approach in which the product is offered to
retailers and consumers at a consistently low cost rather than reducing price
periodically through sales promotion activities.
evoked set 1. (consumer behavior definition) The set of alternatives that are activated
directly from memory. 2. (consumer behavior definition) The set of possible
products or brands that the consumer may be considering in the decision
process. It is the set of choices that has been evoked and is salient as
compared with the larger number of available possible choices. For example,
from the many brands of breakfast cereals on super-market shelves, it is the
half a dozen brands (or so) that the buyer may re-member and be considering
for purchase.
ex parte A regulatory practice of pre-testing proposed regulatory rules in an effort to
get reactions and comments from shippers, carriers, and other interested
parties.
exception rate A transportation charge based on a class rate but reduced due to special
circumstances, usually local or regional competitive conditions.
exchange All activities associated with receiving something from someone by giving
something voluntarily in re-turn.
exchange control The control of movement of funds and of purchases of currency by a
government. Exchange control may be utilized in support of any of the
following objectives: (1) to keep exchange rates stable, (2) to keep the
currency undervalued to stimulate ex-ports, or (3) to keep the currency over-
valued to handicap exports and encourage imports.
exclusion orders Refer to “See Also” column to the right.
exclusionary Refer to “See Also” column to the right.
distribution
exclusive dealing A restriction that is imposed by a supplier on a customer forbidding the
 customer from purchasing some type of product from any other supplier.
This restriction is subject to an examination of whether it substantially
lessens competition or restrains trade. Exclusive dealing should not be con-
fused with exclusive distributorships, a term applied to arrangements in
which a supplier promises not to appoint more than one dealer in each
territory.
exclusive distribution A form of market coverage in which a product is distributed through one
(channels of particular wholesaler or retailer in a given market area.
distribution d
exclusive distribution The practice whereby the vendor agrees to sell the goods or services within a
(retailing definition) certain territory only through a single retailer or a limited number of retailers.
It may also apply to wholesalers.
exempt carrier A transportation provider not subject to direct regulation regarding operating
rights or pricing pollicies. It must, however, comply with licensing and safety
laws. If engaged in interstate movement, the carrier must publish its rates.
exhibit The gathering and displaying of products, people, or information at a central
location for viewing by a diverse audience.
Eximbank Refer to “See Also” column to the right.
expandibility of The degree to which the demand schedule can be shifted through the use of
demand marketing mix variables such as advertising and personal selling.
expectancy A salesperson's estimate of the likelihood that if he or she increases his or her
effort on some job activity, a higher level of performance will occur. In
essence, expectancy is the linkage between effort and salesperson
performance. For example, a salesperson might estimate that there is a 50
percent probability (expectancy) that if he or she spends 10 percent more
time calling on new accounts, his or her sales volume will rise by 15 percent.
Expectancies can influence a salesperson's level of motivation.
expectancy-value model This is one of the major schools of motivation emerging from the work of
Kurt Lewin. According to Wilkie, the major proposition is that the strength
of the tendency to act in a certain way depends on the strength of the
expectancy that the act will be followed by a given consequence (or goal)
and the value of that goal to the individual. It assumes that the consumer
behaves purposively and evaluates, say, the purchase of a particular brand in
terms of how desirable the consequences of the purchase of that brand are for
him or her.
expectation- model that proposes that satisfaction depends upon the consistency between
disconfirmation model expectations and performance. Dissatisfaction is proposed to result when
product performance is below expectations, whereas satisfaction arises when
performance equals or exceeds expected performance.
expediter An expediter is one who works to speed up a shipment for delivery.
expense account An account maintained by salespeople that includes travel, entertainment,
and other expenses which they incur for business purposes and for which
they are reimbursed by their employers.
expense center A collection of controllable costs that are related to one particular area of
work or kind of store service.
expense center The grouping of expenses by their necessity in performing a particular kind
accounting of store service. For example, some expense centers are management,
property and equipment, accounts payable, etc. Natural expenses are
typically included as a part of the concept (e.g., payroll).
experience curve The application of the experience curve effect, to understand (1) how the
analysis components of the total cost of a company's product are affected by
cumulative experience, (2) the relationship of industry experience and
average industry prices and costs, and (3) how competitive cost comparisons
relate to current costs of direct competitors to their cumulative experience.
experience curve effect A systematic decline in the cost per unit that is achieved as the cumulative
volume (and therefore experience) increases. There are three sources of the
experience curve effect: (1) learning-the increasing efficiency of labor that
arises chiefly from practice; (2) technological improvements including
process innovations, resource mix changes, and product standardization; and
(3) economies of scale-the increased efficiency due to size.
experience survey A series of interviews with people knowledgeable about the general subject
being investigated.
experience-curve 1. (pricing definition) A method of pricing in which the seller sets the price
pricing sufficiently low to encourage a large sales volume in anticipation that the
large sales volume would lead to a reduction in average unit costs. Generally
this method of pricing is used over time by periodically reducing the price to
induce additional sales volumes that lead to lower per unit costs. 2.
(economic definition) A price-setting method using a markup on the average
total cost as forecast by cost trends over time as sales volume accumulates.
experiment A scientific investigation in which an investigator manipulates and controls
one or more independent variables and observes the dependent variable for
variation concomitant to the manipulation of the independent variable(s).
experimental demand A price volume relationship estimated by simulating actual market conditions
curve in an experiment or other form of pricing research.
experimental design A research investigation in which the investigator has direct control over at
least one independent variable and manipulates at least one independent
variable.
experimental group A group of subjects in an experiment who are exposed to an experimental
 treatment or alternative whose effect is to be measured and compared.
experimental mortality An experimental condition in which test units are lost during the course of an
experiment.
expert systems 1. (models definition) Interactive computer systems that, by applying a
variety of knowledge elements (e.g., facts, rules, models) within a specified
domain, can solve a problem with an expertise comparable to that of an
acknowledged human expert. As part of the developments in artificial
intelligence, expert systems have been developed in various fields (medicine,
defense, manufacturing, etc.) In recent years, a number of marketing expert
systems have been developed, including ADCAD (an expert system for the
design of advertising appeals and executions) (Burke, Rangaswamy, Wind,
and Eliashberg 1990). 2. (marketing research definition) A computer-based
artificial intelligence system that attempts to model how experts in the area
process information to solve the problem at hand.
explicit costs The costs that are generally of a contractual or definite nature, including
expenses for such items as wages, telephone bills, light bills, and supplies.
They are explicitly carried on the accounting records as costs and are charged
against the operation of the business because they are obvious and definite in
amount.
exploration stage Refer to “See Also” column to the right.
exploratory research A research design in which the major emphasis is on gaining ideas and
insights; it is particularly helpful in breaking broad, vague problem
statements into smaller, more precise subproblem statements.
exponential smoothing A forecasting technique to estimate future sales using a weighted average of
previous demand and forecast accuracy. The new forecast is based on the old
forecast incremented by some fraction of the differential between the old
forecast and sales realized. The factor used to calculate the new forecast is
called an alpha factor.
export agent A manufacturers' agent who specializes in marketing goods abroad.

export commission Refer to “See Also” column to the right.

representative
export distributor Refer to “See Also” column to the right.

Export Import Bank The primary U. S. government agency in the business of providing funds for
(Eximbank) international trade and investment. It also plays a key role in the U.S. export
credit insurance program and is the primary administrator for the foreign
currencies abroad that are generated by the U.S. surplus farm commodities.
export management A firm that manages exports for other firms. It produces no product of its
company (EMC) own but serves as an international marketing intermediary. It acts as the
export department of the client firm and may even use its letterhead.
export marketing The integrated marketing of goods and services that are produced in a foreign
country. Each element of the marketing mix (product, price, promotion, and
channels of distribution) is potentially variable.
export selling Selling to a foreign country with the focus on the product and the emphasis
on selling. The key elements of marketing mix (product, price, promotion,
and channels of distribution) are all the same as in the home market. Only the
place or distribution is adjusted in export selling.
export trading company A firm that buys another firm's merchandise and assumes all responsibility
for the marketing and distribution of the product abroad.
exposure Any opportunity for a reader, viewer, or listener to see and/or hear an
advertising message in a particular media vehicle.
exposure distribution Refer to “See Also” column to the right.
expressed guarantee Refer to “See Also” column to the right.

expressed warranty 1. (retailing definition) A guarantee supplied by either the retailer or the
manufacturer that details the terms of the warranty in simple and easily
understood language so customers know what is and what is not covered by
the warranty. 2. (product development definition) The spoken or written
promises made by the seller of a product about what will be done if the
product proves to be defective in manufacture or performance. This contrasts
with promises that are only implied by common knowledge of the product or
by customary practices in a trade. Expressed warranties are usually restricted
to stated periods of time.
expropriation Government acquisition of private property without payment of prompt and
full compensation to owners.
extension pricing policy A pricing policy that requires that the price of an item be the same around the
world and that the customer absorb freight and import duties. This is also
known as ethnocentric pricing policy.
extensive problem 1. (consumer behavior definition) A choice involving substantial cognitive
solving and behavioral effort. 2. (consumer behavior definition) In the choice
process, this includes those decisions that consume considerable cognitive
activity and thought, as compared to routinized response behavior and
habitual decision making.
external action program Refer to “See Also” column to the right.
external data Data that originate outside the organization for which the research is being
 done.
external factors Refer to “See Also” column to the right.
external stimulus A cue or stimulus or prod to action that is external to the individual such as a
bright light or an advertisement. An internal stimulus would be one from
within the individual such as hunger pangs, the feeling of fear, or glee.
external threats Refer to “See Also” column to the right.
external validity One criterion by which an experiment is evaluated; the criterion refers to the
extent, to what populations and settings, to which the observed experimental
effect can be generalized.

externality Refer to “See Also” column to the right.

extinction The process by which a learned response or learned behavior pattern is
extinguished or unlearned (or forgotten). Extinction is the psychological term
for unlearning. It is the process of forgetting and although there is some
controversy over whether or not forgetting naturally occurs over time, it is
accepted that extinction can be induced.
extra dating A form of deferred dating. The purchaser is allowed a specified number of
days before the ordinary dating begins. To illustrate, in the sale of blankets
the terms "2/10-60 days extra" may be offered by the vendor. This means that
the buyer has 60 days plus 10 days, or 70 days, from the invoice date in
which to pay the bill with the discount deducted.

extrinsic reward A reward that is external to the individual such as money, food, or a pat on
the head. An intrinsic reward is one that is internal within the person such as
feeling good for a job well done.
Eye Tracking Studies Studies by Google, Marketing Sherpa and Poynter Institute using Eyetools
technology to track the eye movements of web page readers, in order to
understand reading and click-through patterns. Source: SEMPO
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