Environmental Analysis

Enduring Involvement – The general, personal relevance of a product or activity.

Engel’s Law – The observation that the proportion of income spent on food declines 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.

Environment – The complex set of physical and social stimuli in the external worlds 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 Impact Analysis – The assessment of the impact of strategy or decision on the environment, especially the ecological consequences of the strategy or decision.

Environmental Protection Agency (EPA) – A federal agency formed in 1970 that regulates the amount of pollutants manufacturers can emit.

Environmental Monitoring – The activities aimed at keeping track of changes in external factors that are likely to affect the markets and demands for a firm’s products and services. Among the external factors usually considered are the economic, social, demographic, political, legal, cultural, and technological forces.

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 issues 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.

Episodic Knowledge – The mental representations of the specific events in a person’s life.

Equal Time – Section 315 of the Federal Communication Commission Act provides 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 Method – A method of determining sales force size that is based on the premise that all sales personnel should have an equal amount of work. The method requires that management estimate the work required to serve the entire country. 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 sales person 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 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.

Ethics – This relates to moral action, conduct movie, and character. It is also means professionally right or befitting, conforming to professional standards of conduct.

Ethnocentric Orientation – A home country orientation or unconscious bias or belief that the home country approach to business is superior.

Ethnography – A detailed, descriptive study of a group and its behavior, characteristics, culture, etc.

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 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 Current Unit (ECU) – A weighted average currency unit created by weighting the current exchange 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 Association (EFTA)- An association established by the Stockholm Convention of 1959, with 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 of Alternative Suppliers, in Organizational Buying – Formal supplier evaluation is the rating of alternative suppliers on preset criteria in order to evaluate their technical, financial, and managerial abilities. It is a way to substitute facts for feeling in selecting suppliers.

Event Creation – The use of communication technique such as news releases, press conference, etc., to call attention to activities to promote a company, product or service, Also, it is development of a special activity, showing, display, or exhibit designed to demonstrate products or to connect the product to favorable products or activities.

Every Day Low Price (EDLP) – 1. (retailing definition) A policy or strategy of retail pricing whereby presumably low prices are set initially on items and maintained, as opposed to the occasional offering of items at special and 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 many brands of breakfast cereals on supermarket shelves, it is the half a dozen brands (or so) that the buyer may remember and be considering for purchase.

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