Modified rebuy

Ordering the same purchase that had been bought in the past, but adding some changes, i.e. an organization purchasing a set of office furniture of a new pattern from the same or other retailer.

Commission system (Ad agencies)

The traditional method of compensating advertising agencies where the agency receives a specified commission (usually 15%) from the media on any advertising time or space it purchases for its clients. This system provides a simple system of determining payments to the agencies on the basis of the advertising rates charged by the media.

Purchasing power parity (PPP)

An alternative measure of wealth that estimates the per capita GNP. The basic idea of PPP is to identify the number of units of a country’s currency required to buy the same amounts of goods and services in the domestic market as one dollar would buy in the United States. Thus PPP is an alternative way to measure wealth that is more indicative of the purchasing power of a country’s currency.

Rented-Goods Services

Area of service retailing in which consumers lease and use goods for specified periods of time.

Purchasing power

Consumer’s ability to buy various goods and services for personal consumption.

Autocratic decisions

Those purchase decisions that are made almost exclusively by one or the other spouse in a family. This is also referred to as autonomic (or unilateral) purchase decision.

Limited decision making

A type of buying situation where a consumer uses every step in the purchase process but does not spend a great deal of time on each of them.

Inflation

A general rise in price level that reduces consumer purchasing power. Inflation is a dimension of the economic environment that affects the interest rates, exchange rates, the cost of living, and the general confidence in a country’s political and economic system.

Computerized database

A collection of information or data that is available to users by means of a computer terminal. Many commercial computerized databases, such as mailing lists, industry analyses, and governmental indexes, are available for lease or outright purchase.

Sourcing strategy

The strategy that a company pursues in purchasing materials, components, and final products; sourcing can be from domestic and foreign locations and from inside and outside the company.

Purchase panels

It is a data gathering technique in which respondents record their purchases online or in a diary. These purchase panels ARE used in experimental as well as descriptive longitudinal research designs.

Direct purchasing

One of the ways of purchasing procedures by the business buyers. Here, many business buyers buy directly from manufacturers rather than through intermediaries, especially items that are technically complex or expensive.

Centralized purchasing

In the context of business buying, some multidivisional companies have established their purchasing in a centralize way. Here, the headquarters identifies purchased by several divisions and buys them centrally, thereby gaining more purchasing clout. The individual divisions can buy from another source if they can get a better deal, but in general, centralized purchasing produces substantial savings.

Buyer

In consumer buying it refers to the person who makes an actual purchase. In industrial buying it refers to the person who interacts with the suppliers, arranges the terms of sale, and processes the actual purchase orders.

Full nest I

One of the stages in family life cycle where the family consists of couple and one child under the age of six. This type of family is characterized by high home purchasing

Instant coupon

Coupons attached to a package that can be removed and redeemed at the time of purchase.

Purchase decision

The stage of the buyer decision process in which the consumer actually buys the product. Some experts feel that the purchase decision is not the same as an actual purchase. Once a consumer decides which brand to buy, he or she must still implement the decision and make the actual purchase.

Middleman

Someone who acts to bring buyer and seller together, or someone who purchases goods from the producer and sells them to a retailer or directly to the consumer. The “middleman” is often portrayed as a villain who adds cost to products for doing nothing. In reality, middlemen provide a valuable distribution service that gets goods into the marketplace.

Web site atmospherics

Atmospherics refers to the in-store ambiance created by the brick-and-mortar retailers. Similarly, providing visitors with a positive environment to visit, search, purchase, and so forth can differentiate web sites. Visitors want a site that easily downloads, portray accurate information, clearly shows the products and services offered, and are easily navigated. If the consumers view the home page and like what they see, they are more likely to view additional pages and ultimately become customers.

Rational perspective

A view of the consumer as a careful, analytical decision maker who tries to maximize utility in purchase decisions.