Aggregation – Aggrare (Latin)= add to.
The collection of primary data in an aggregate (=cluster). Generally, the objective of aggregation is to provide findings in an abbreviated form. For example, national incomes and price indices are aggregated, in contrast to the income of an individual or the price of a single product.
Average Life – The average number of years that a consumer durable is used in a household before it is economically outdated (repairs too expensive). I is determined both in the laboratory by simulation of real usage and in reality by means of field research work. It is important for the determination of replacement purchase frequency. See also: Consumer durables/Replacement purchasers
Business Barometer – Syn: Index of business activity
A weighted average of several economic indicators, such as the production of steel, coal, oil, electricity and transport. Collectively they determine the general activity in a country during a certain period. The barometer presents recent information about the actual state of the economy that can be related directly to industrial activities of individual business enterprises. Barometers are published weekly, monthly and quarterly by governmental agencies and business magazines such as Business Week.
See also: Business Climate
Business Climate – Syn: Business cycles
The condition of the business economy, with particular reference to its changes in periods of expansion and contraction. It is suggested by fluctuations in the measurement of aggregated economic activity such as gross national product, the index of industrial production, employment and incomes.
See also: Economic indicator/ Aggregation
Business Cycles – Syn: Business Climate See: Business Climate
Buyer’s Market – A market in which producers, suppliers and retailers experience difficulties in selling their products. The market can be said to be dictated to or dominated by the buyers. Reasons can include oversupply.
Capital Goods – Goods generally of high value that are principally used for the production of other goods , e.g., factory buildings, machines, trains, trucks, tractors. Land and money are not considered to be capital goods.
Consumer Assortment – The combination of goods and services that an individual or family recognizes as being essential to maintain or enhance a certain standard of living.
Consumer Durables – Expensive articles generally used by consumers over a number of years prior to their economical, technical or psychological utility being eroded. The consumer’s decision to purchase this kind of goods demands time and is often preceded by a prior search for information (folders, references, discussion with other owners, etc.). Examples of such articles are cars, stereo sets, furniture, etc. See also: Information-seeking behavior/Pattern of possession of consumer durables.
Consumer Goods – Goods intended for use by the final consumer or household. They are so constituted that without any further commercial handling they can immediately used, e.g., packaged meats, soft drinks. See also: Industrial goods
Consumer Goods Expenditure – That part of a consumer’s income spent on consumer goods (pensions and insurance payments are usually excluded). See also: Discretionary Income
Consumer Price Index – A price that is designed and used to measure changes in the cost of living. It is based upon a number of products and services that are essential for living (also products that make life “easier”). The index includes such necessities as foodstuffs, footwear, and clothing. The price index is used by government and trade unions in wage negotiations. It is also measure of inflation. In most countries there is an independent authority responsible for the calculation of the consumer price index. See also: Inflation/Consumer Panel/ Standard of Living
Convenience Goods – All consumer goods that are frequently purchased by buyers who typically make a rapid purchase decision and do not compare their purchase with other products. Examples: tobacco goods, soap, many food products. See also: Consumer Goods
Cost of Living Index – Syn : Consumer Price Index See: Consumer Price Index/Retail Price Index
Cyclical – Referring to the business cycle of climate. See also: Business Climate
Cyclical Variation – The repeated pattern of factors over time. The period involved maybe shorter or longer that a year. See also: Time Series
Deflation – A major concept in economics: a situation in which prices and incomes fall. It is accompanied by an increase in the value of the currency. The opposite phenomenon is inflation.
See also: Inflation
Demand – The tendency and capability of a market, or part of a market, to purchase a good or service. See also: Supply
Dissaving – Syn: Savings Outflow See: Savings Outflow
Distressed Market Area – An area that is economically depressed, characterized by high employment, low consumption of consumer goods and a declining number of retail outlets. Distressed market areas in the Western industrialized world can often be found in old smokestack industrial towns and one-industry areas, where the major employer closes down its plant.
Econometrics – The scientific study of economic theories wherein use is made of mathematical and statistical techniques. Models are principally created to explain and predict economic phenomena.
See also: Economics/Model